Agricultural enterprises in Nyanza and Western regions are set to benefit from an innovative Sh800 million blended finance programme.
The three-year programme provides access to agri-finance in the counties where there are Micro, Small Medium (MSMEs) and large enterprises.
The Agricultural Finance Corporation will contribute Sh400 million, the other Sh800 will be granted.
The programme will be implemented by AFC and Kenya Crops and Dairy Market Systems.
AFC chairman Franklin Bett said the programme supports the agricultural business proprietors with working capital and thus avenues to expand.
The programme will benefit farmers in dairy, fodder/feeds, horticulture, poultry and agro-dealers in Homa Bay, Migori, Kisii, Kisumu, Kakamega, Bungoma, Busia, Vihiga and Siaya counties.
“The initiative aligns with the corporation’s new innovative approaches to strengthening the ecosystem of AFC's operations,” Bett said.
He said the programme facilitate finance access by farmers in Nyanza and Western. He spoke on Tuesday during the launch of the program in Kisumu.
He told farmers to have a proper business plan and not to divert money to other businesses.
Further, Bett asked the national and county governments to set up a robust marketing strategy for farmers' products.
Bett said most farmers in the country prefer the corporation’s loans because they are fast in processing.
“Our loans have a lower interest rate of 10 per cent compared to the commercial banks’ 13 per cent and have a flexible repayment period,” he said.
Lucas Meso, managng direction of the AFC, said the initiative will have a lasting impact on the agricultural sector in the regions.
The MD urged farmers apply for cheap loans from the AFC to boost farming activities and increase food production. The loan is paid at the interest of 10 per cent, he said.
“Our entrance to the market will ensure farmers access affordable loans and service their agribusiness needs,” Meso added.
He urged farmers who secure loans to embrace value addition and invest in viable projects with better returns. “Good investments will enable farmers to eradicate poverty. We must learn to add value to our products,” he said.
Farmers, Meso said, should end over-dependence on a single crop and diversify through wise investments.
The AFC boss, however, told farmers to initiate the best farming practices to boost their production and income.
(Edited by V. Graham)
