Family Bank has acquired a Ksh.20 million loan facility from FSD in an expansion drive on its loan portfolio to support farmers.
The facility will boost activities specifically in dairy farming, cooperatives, dairy companies and input suppliers.
The two-year agreement credit guarantee facility will facilitate the purchase of fodder, concentrates, minerals, artificial insemination services, and propagation of feeds among other dairy industry inputs.
According to Family Bank chief executive Rebecca Mbithi, the dairy value chain has continued to be impacted by the long severe drought and high cost of animal feed that has in turn reduced milk production in the country.
“Through this credit facility, Family Bank will scale up lending to the dairy industry and help them bridge these existing challenges. With partners such as FSD, we are also able to widen our capital base to support more dairy industry players such as smallholder dairy farmers by extending credit at favourable terms,” said Mbithi.
According to the Kenya Dairy Board, the dairy sector is estimated at 14 percent of Kenya’s Gross Domestic Product (GDP) with milk being primarily produced by smallholder dairy farmers, who account for 56 per cent of total output.
Previously, Family Bank has partnered with Performeter and set aside Ksh.1 billion to support dairy co-operatives in the acquisition of fodder and with Ndumberi Dairy Farmers Co-operative Society to increase availability and access to good quality fodder to a thousand dairy farmers.