The Principal Secretary of Agriculture, Paul Rono, has urged farmers to repay their Agriculture Financing Loans to improve loan recovery, given the rising default rates.
As the number of defaults increases, the Agriculture Finance Corporation (AFC) is seeking Ksh.10 billion in funding to assist farmers. They plan to use their databases to prioritize funding for crucial sub-sectors and enhance food production.
Dr. Rono highlighted the difficulties in loan recovery and stressed the necessity of loan repayments for farmers to obtain vital inputs, increase crop yields, and boost income. He called for the support of all relevant stakeholders to aid in the successful recovery of loans.
“We are cognizant of the challenges we face in recovering our loans, and we have alerted all defaulters to ensure they repay all their loans. This will enable us to redistribute it to other farmers who are also seeking loans,” said PS Rono.
With a database of 6.4 million farmers, AFC’s goal is to reduce risks in the sector, attract private capital, and identify specific value chains that require government funding.
Dr. Rono said the government is committed to providing affordable working capital, implementing risk management tools, and ensuring the profitability of farming.
“The discussion on agricultural investment and funding is long overdue and needs to occur to better position ourselves to transform our agricultural sector and determine how best to involve all relevant players.”.
Kenya has pinpointed 18 priority value chains out of 33, with a focus on food security, job creation, export growth, and stimulating investment in agriculture.
The forthcoming Conference on Financing Agriculture Sustainability, scheduled for March 27-28, 2024, will evaluate the financial landscape, address obstacles, and investigate appropriate financing models.
The conference, led by the Ministry of Agriculture, will bring together stakeholders from various sectors to work on sustainable financing solutions.
Kenya’s ambitious goals include reducing reliance on basic food imports, improving oil crops production, increasing rice production, and rejuvenating export crops.
The upcoming conference highlights Kenya’s dedication to promoting agricultural sustainability and economic growth.
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