Kenya bets on innovative financing to boost rural farmers

Kenya is rolling out a new financial initiative to strengthen its agricultural sector and support rural communities.

National Treasury Principal Secretary Chris Kiptoo said the Rural Kenya Financial Inclusion Facility (RK FINFA) will expand access to affordable capital for small-scale farmers and agribusinesses.

“The RK FINFA program demonstrates the government’s commitment to promoting access to affordable credit and modern agricultural practices,” Kiptoo said after meeting with International Fund for Agricultural Development (IFAD) Country Director Mariatu Kamara and her delegation.

Agriculture remains a central pillar of Kenya’s economy, contributing over a quarter of the country’s GDP, two-thirds of export earnings, and the majority of rural employment.

To modernise the sector, the government has prioritised value addition and inclusive financial solutions.

Kiptoo noted that the facility aligns with the Bottom-Up Economic Transformation Agenda, which aims to create jobs and raise farmers’ incomes.

According to Kamara, the initiative is designed to attract private sector capital while driving sustainable rural development.

“This facility is tailored to unlock private sector resources and ensure rural farmers have access to the tools they need to thrive,” she said.

The program will work with commercial banks, Savings and Credit Co-operative Organizations (SACCOs), and microfinance institutions to deliver financial services that address the specific needs of rural communities.

Officials say the approach represents a shift from traditional aid models to an investor-driven framework that empowers local communities.

By leveraging technology and partnerships, the facility is expected to strengthen food security, reduce poverty, and support long-term economic growth.

“RK FINFA is not only about providing credit, but about creating a financial ecosystem that can support farmers as they transition from subsistence to commercial agriculture,” Kiptoo added.

The program is seen as a step toward building a stronger rural economy and unlocking new opportunities for millions of Kenyans.