USAID and Family Bank extend Ksh6 B Credit to Agribusinesses
Seventeen (17) Counties have been mapped out to benefit from Ksh6 billion credit facility for agribusinesses.
Family Bank, through the USAID’s Pay for Performance initiative committed to extend Ksh6 billion affordable credit to agribusinesses.
This targets businesses across the agricultural value chains such as dairy, horticulture, livestock and energy sectors, among others, for the next one year.
Family Bank Chief Executive Officer Rebecca Mbithi says that despite agricultural sector being a great contributor to the country’s economy, the challenges faced by the sector continue to hinder its growth.
“We recognise the finance need for agribusinesses to scale climate-smart agriculture technologies to enhance the climate resilience for agricultural value chains,” said Mbithi
Climate change over the years has worsened weather-related risks such as droughts, floods, pests and diseases, exposing farmers to huge losses.
Estimates from the Ministry of Agriculture show that the economy lost Ksh 1.33 trillion as a result of extreme drought between 2008 and 2011 with the livestock sub-sector accounting for 72 percent of this losses.
The counties that will benefit from the funding are Homa Bay, Migori, Kisii, Kisumu, Siaya, Kakamega, Bungoma, Busia, Vihiga, Kitui, Makueni, Taita Taveta, Isiolo, Marsabit, Turkana, Garissa and Wajir.
The bank had earlier in the year through the same program extended Ksh500 million to support agribusinesses as part of USAID’s effort to unlock KES 40 billion to SMEs in Kenya and East Africa.
Kenya Investment Mechanism is a USAID program that unlocks capital for SMEs and smallholder farmers in Kenya and East Africa, in partnership with banks and other financing organizations.
The program is implemented by Palladium, a global firm that works with foundations, investors, governments, corporations, communities, and civil society to formulate strategies and implement solutions that generate lasting social, environmental, and financial benefits.