Family Bank has committed to disburse loans worth approximately US $5m to agribusinesses across selected 17 counties in Kenya over the next year. Through an initiative dubbed ‘Pay for Results’, the bank targets to provide financing across dairy, horticulture, livestock, and energy for agriculture value chains.
According to media reports, the Bank is targeting Homa Bay, Migori, Kisii, Kisumu, Siaya, Kakamega, Bungoma, Busia, Vihiga, Kitui, Makueni, Taita Taveta, Isiolo, Marsabit, Turkana, Garissa and Wajir counties.
The Chief Executive Offier for the bank Rebecca Mbithi said the agri-business sector faces challenges accessing affordable credit and technical support. Through this partnership, we will provide affordable credit and capacity building to our SME customers to nurture sustainable agri-businesses.
The agriculture sector forms the backbone of Kenya’s economy, with an approximate contribution of 33 percent to the country’s GDP. However, overall lending by financial institutions to agriculture businesses remains low.
This partnership comes barely a month after Family Bank entered into a fodder financing agreement with Performeter Agribusiness and Ndumberi Dairy Farmers Co-operative Society that is set to double dairy farmers’ milk production to 30,000 liters per day.
Kenya Investment Mechanism is a USAID program that unlocks capital for SMEs and smallholder farmers in Kenya and East Africa, in partnership with banks and other financing organizations. The program is implemented by Palladium, a global firm that works with foundations, investors, governments, corporations, communities, and civil society to formulate strategies and implement solutions that generate lasting social, environmental, and financial benefits.