Family Bank commits Ksh. 6 billion to agriculture
The family bank has committed Ksh 6 billion to extend affordable credit to agribusinesses across 17 counties.
The Counties targeted include Homa Bay, Migori, Kisii, Kisumu, Siaya, Kakamega, Bungoma, Busia, Vihiga, Kitui, Makueni, Taita Taveta, Isiolo, Marsabit, Turkana, Garissa and Wajir
The funding will be channeled through the USAID’s pay for performance initiative under the Kenya investment mechanism program.
The Kenya investment mechanism is a USAID program that unlocks capital for SME’sand smallholder farmers in Kenya and East Africa, in partnership with banks and other financing organizations
Targeted businesses for the funding include those in the agricultural value chains such as dairy, horticulture, livestock, and energy sectors, among others.
According to Family Bank Chief Executive Officer Rebecca Mbithi , despite the agricultural sector being a great contributor to the country’s economy, various challenges continue to hinder the sector’s growth.
“The agri-business sector faces challenges accessing affordable credit and technical support. Through this partnership, we will provide affordable credit and capacity building to our SME customers to nurture sustainable agri-businesses,” said Family Bank Chief Executive Officer Rebecca Mbithi.
She added that such private partnerships are essential, especially in the wake of the COVID-19 constraints on the Kenyan agricultural market, to ensure timely and continued operation of the food supply chain.
In charge of USAID’s Kenya Investment Mechanism, Roger Bird said the organization is constantly seeking partnerships with organizations eager to finance agribusiness.
The USAID-Family Bank partnership will enable the creation of new financing products that better fit the cash collection cycle of agribusinesses in the selected counties.
Family Bank has a similar deal with Performeter Agribusiness and Ndumberi Dairy Farmers Co-operative Society set to double dairy farmers’ milk production to 30,000 litres per day through a fodder financing agreement.