By Anzo Robert Lagu
A farmer group in Kiryandongo District has transformed from an informal village savings association into a growing agribusiness enterprise after embracing formalisation, mechanisation and climate-smart farming practices.
Konya Farmers Group, based in Kichwabuchingo Village, Bweyale Town Council, started with nine members who saved small amounts of money through a village savings and credit association (VSLA), largely to finance end-of-year Christmas celebrations.
Today, the group owns a 26-horsepower Sonalika tractor, maize shellers, a three-wheeled tricycle and a poultry project, while its annual income has increased to about Shs16 million from less than Shs5 million generated through savings.
The transformation followed a campaign by Kiryandongo District to formalise farmer groups and improve their access to credit, training, extension services and other opportunities.
A 2024 report by the district agriculture department indicated that about 64 per cent of farmer groups in the district operated as informal associations without the resources and structures needed to grow.
Bazilio Okongo, the chairperson of Konya Farmers Group, said the group was formed in the aftermath of the Covid-19 pandemic when members needed an avenue to save and access small loans.
“It was the only village bank members could borrow from in the aftermath of the Covid-19 pandemic. We needed to do something new urgently to rebuild our lives from the impacts of Covid-19,” Mr Okongo said.
He said members could only borrow up to twice the amount they had saved because the group accumulated less than Shs5 million annually.
“Larger agribusiness concepts were unheard of in the area, as was the knowledge of proper transactional record keeping. For a while, business depended on fate and absolute goodwill,” he said.
Formalisation
The turning point came when members were introduced to the Climate Smart Jobs Project, an initiative aimed at transforming smallholder agriculture in Northern Uganda through job creation, climate change adaptation and poverty reduction.
The group was informed that formalisation, supported by a clear constitution and investment plan, would enable it to access training, technologies and other resources, including small-horsepower tractors.
Members subsequently decided to venture into maize milling, mechanisation and poultry.
Okongo said members were required to mobilise money towards the purchase of a 26-horsepower Sonalika tractor.
The group recruited more members and continued mobilising savings until mid-2024. Members were trained in leadership, group management, conflict resolution and constitution-making.
With the support of a consultant, the group completed the formalisation process and registered with the Uganda Registration Services Bureau (URSB), where it obtained a certificate of incorporation.
Members’ savings were converted into shares and used as capital for the enterprise. The member with the largest shareholding contributed Shs12.18 million towards the purchase of the tractor.
Grace Nyakanombe, a group member, said she initially considered leaving because she did not see a clear future for the association.
“I even wanted to leave the group because I never saw the good future ahead of us,” she said.
Ms Nyakanombe said she was also concerned that members who contributed more money had greater influence over decisions.
Richard Kabagambe, the business operations manager of Konya Farmer Group Enterprise, said the most important benefit of formalisation was the knowledge members acquired.
“At the end of their formalisation, they received the most valuable asset for progress — knowledge, alongside the tractor,” Mr Kabagambe said.
Tractor changes fortunes
The tractor became a major source of income for the group after it started hiring it out to members and other farmers in the community.
The 16 to 26-horsepower tractors are considered suitable for smallholder farmers because they are compact, fuel-efficient and can operate on relatively small plots of land.
According to the project, such tractors can plough about two acres a day, helping farmers prepare their land and plant on time, unlike manual cultivation, which can take much longer.
The machines can also support conservation farming because they cause less soil disturbance and can be fitted with implements such as seed drills for zero tillage.
Lokwiya Stephen, a commercial agent who supported the group, said the tractors could also be used for transporting farm produce and supporting farmers during prolonged dry spells.
“The machines can also support farmers during post-harvest handling by serving as transport means. During a time of prolonged dry spell, farmers can use the tractor for irrigation,” he said.
The group plans to use proceeds from the tractor business to acquire 10 acres of land in Mutunda in early 2027.
Improved access to services
Byenkya Issa Hassan, the Kiryandongo District agriculture officer, said formalised farmer groups were better positioned to cope with climate-related shocks.
“The group enjoys improved access to information about weather forecasts, climate-smart farming practices, pest alerts and early-warning information from the district,” he said.
Mr Byenkya added that registered groups could also access loans, grants, savings schemes, insurance and government and non-governmental programmes.
Such opportunities enable farmers to invest in irrigation, drought-tolerant seeds and water-harvesting technologies.
Mr Okongo said working collectively had also strengthened the farmers’ bargaining power.
“When farmers work as a group, they gain stronger market power as they negotiate better prices. They improve their storage and are able to reduce post-harvest losses,” he said.
He added that formal groups gave farmers a platform to participate in local planning and policy discussions and advocate for better roads, irrigation, extension services and water infrastructure.
Diversifying operations
Konya Farmers Group has also ventured into agro-processing and now owns maize shellers in Bweyale Town Council.
Simon Komakech, a group member, said the enterprise can process and package up to 200 tonnes of maize sourced from surrounding communities.
The group has also acquired a three-wheeled tricycle to facilitate the collection and transportation of produce during harvest.
Two months ago, the group diversified further by venturing into poultry farming. It currently keeps about 100 chickens.
The commercial agent model under which the group operates seeks to connect farmers to markets and inputs while eliminating exploitative middlemen through transparent commissions and formal agreements.
The journey from an informal savings group to a formal agribusiness enterprise has demonstrated the potential of organised farmer groups to improve access to finance, technology, markets and extension services.
For Konya Farmers Group, formalisation has not only created new business opportunities but has also strengthened members’ capacity to withstand climate shocks and build more sustainable livelihoods.
