Faulu Bank has entered into a partnership with USAID-funded Feed the Future Kenya Crops and Dairy Market Systems Activity (KCDMS) implemented by RTI International to enhance access to finance for farmers across the country.
The deal, in which Faulu Bank has set aside Ksh.100 million, targets 12 counties with an aim to support the development of sustainable agriculture as an economic engine, an environmentally sound enterprise, and an essential contributor to human health and welfare.
The 12 counties include Migori, Homabay, Kisumu, Kisii, Siaya, Bungoma and Kakamega.
Other are Vihiga, Busia, Kitui, Makueni and Taita Taveta.
“This partnership will not only allow us to grow our agriculture financing segment but also enable us to train at least 10,000 farmers on how to take loans, grow their revenues and how to flag off challenges in their farming journey”. “At least Ksh.100 million has been set aside by the bank for agriculture financing and we are ready to extend more financing towards agriculture on a need basis,” said Faulu Bank Managing Director Apollo Njoroge.
USAID- KCDMS has injected Ksh.12.9 million grant and will support Faulu to recruit and train staff in the branches that support agriculture financing as well as credit staff involved in agriculture loan analysis and disbursement.
“KCDMS is expanding access to finance and credit by smallholder farmers and SMEs through partnerships with financial and micro-finance institutions in Kenya. Faulu Bank is one of our strategic partners in developing innovative credit solutions for smallholders and agricultural enterprises,” said KCDMS Chief of Party, Dr. Robert Mwadime.
The project, however, is not only limited to full-time farmers but even individuals who are keen to make healthier eating choices that affect millions of people.
“KCDMS is currently supporting over 40,000 farmers and MSMEs to access financial literacy training and credit from partner financial and microfinance institutions such as Faulu Bank for investment in inputs, seeds, fertilizer, and equipment. Our partnership with Faulu will see an additional 10,000 farmers benefiting,” said Dr. Mwadime.
Faulu Bank has set up a 2022 strategic pillar to provide financial support to improve the capacity of small enterprises to take advantage of unfolding trade opportunities at the devolved level.
The partnership looks to integrate the youth and women into the agricultural market system.
Young Kenyans represent a large and growing share of the country’s workforce, and with improving educational attainment and advanced digital literacy, they are poised to drive agricultural innovation and transformation.
Some of the expected outcomes of this partnership are: increased investment and employment by youth and women within high-return agricultural value chains, improved understanding among young people and women about profitable business opportunities across entire value chains, reducing stigma and misconceptions about entering the agricultural sector and reduced barriers for youth and women in accessing finance, stimulating investment in production and off-farm enterprises.
The partnership will also enable customers to achieve lifetime financial goals and experience personalized services for all at the branch level.
