Reasons why farmers applied for loans in Kenya

Kenyan farmers sought loans primarily to cover the costs of agricultural inputs, according to the Central Bank of Kenya's Agriculture Sector Surveys from July and September 2025.

In both surveys, the need to "Buy inputs e.g. fertilizer, seeds, pesticides, etc." was the overwhelming reason, cited by over 80% of respondents in the September survey and over 90% in the July survey.

The second most common reason for borrowing across both periods was to cover labour costs, with approximately 50% of farmers applying for loans for this purpose in September.

Other significant drivers for seeking credit include Expansion of farm/land and Hiring/lease of farm equipment e.g. tractors, both of which were cited by over 30% of farmers in September.

The need for Buying equipment/machinery and Diversification of agricultural activities were also cited, though by fewer respondents.

Notably, the percentage of farmers applying for loans for Diversification saw a slight increase between the July and September surveys, suggesting a growing interest in new ventures within the sector.