NAIROBI, Kenya, March 20 – Faulu Microfinance bank has set aside Sh1.5 billion to finance farmers in acquiring farm and livestock inputs in a bid to enhance food security in the country.
As part of the financing deal, the bank seeks to offer flexible and affordable agribusiness loans repayable in bullets or through moratoriums to farmers.
This will align with various seasons of livestock and crop farming.
The Bank has also partnered with over 100 Agrovet shops branded as Faulu Kilimo Centers where farmers can visit and get financing for inputs to minimize the diversion of loan funds to other competing needs.
“For the Kenyan economy to function optimally the country should experience food security. To realize this, we as a bank seek to enhance agriculture-led economic growth, improve nutrition outcomes, strengthen county government capacity, increase resilience, and build sustainable market systems by supporting farmers to access affordable and flexible financing and insurance solutions,” said Faulu Microfinance Bank Managing Director Apollo Njoroge.
Besides crop farmers, livestock farmers seeking to acquire livestock can approach the bank and acquire loans targeted to finance the purchase of livestock, animal feeds and construction of animal structures.
The Bank is also keen on offering insurance solutions for crops and livestock.
According to recent data from the Food and Agriculture Organisation- FAO of the United Nations, Kenya’s agricultural sector contributes approximately 33 per cent of the country’s Gross Domestic Product (GDP).
In addition, the sector employs more than 40per cent of the total population and 70per cent of the rural population.
However, agricultural productivity has stagnated in recent years as smallholder farmers and agricultural enterprises continue to face challenges growing their businesses and improving the quality of agricultural goods.
