Sugartrace Limited · Kenya
In the programme
Abstract
Africa's blue economy faces a persistent challenge: over 300,000 small-scale fishers across Kenya's coastal and inland waters are excluded from formal credit, mirroring agriculture where 70% of loan applications fail for lack of verifiable records. This deficit limits fisheries management and perpetuates post-harvest losses. SugarTrace - an award-winning blockchain-IoT platform from Kenya's sugar sector - presents a transferable architecture for aquatic food systems.
Objectives
This study investigated SugarTrace's adaptation to blue economy value chains: (1) assessing financial exclusion barriers among fishers and aquaculture operators in Kilifi and Kisumu; (2) evaluating technical feasibility of adapting SugarTrace's architecture - USSD interface, blockchain ledger, remote sensing, analytics dashboard - to fisheries contexts; and (3) developing a traceability framework transforming catch data into verifiable credit collateral.
Methods
A mixed-methods approach combined participatory action research with technical systems analysis. Phase one comprised focus group discussions with 12 Beach Management Unit groups (n=144 fishers) and interviews with 15 financial institutions. Ethics clearance was obtained from KMFRI Research Ethics Committee. Phase two examined modifications for vessel-based offline data capture and EFMIS integration. Phase three co-designed a prototype validated through stakeholder workshops.
Key Results
Of 144 fishers surveyed, 78% lacked formal credit; 82% identified absence of catch records as the primary barrier. Among 15 institutions, 73% expressed willingness to lend against blockchain-verified production histories. The adapted architecture integrated with EFMIS across three Kilifi pilot sites. Blockchain timestamping eliminated data manipulation during the pilot, and the framework demonstrated a 28% reduction in supply chain information gaps.
Conclusions
SugarTrace's modular blockchain-IoT architecture is adaptable to low-resource fisheries environments. EFMIS integration creates a scalable data layer connecting documentation, traceability, and financial inclusion. This African-led innovation advances ARBEC III's science-innovation agenda, contributing to SDG 14, SDG 1, and the UN Ocean Decade's data goals - offering a replicable technology pathway for inclusive blue economy growth.
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