Faulu Microfinance Bank has committed Ksh 1.5 billion to enable farmers in the country purchase farm and animal inputs.
Faulu targeting 47 counties is expected to help the country boost food security efforts by increasing production capacity as the country awaits long rain season after months of poor rainfall that has led to drought and famine.
According to Faulu Microfinance Bank Managing Director Apollo Njoroge, the lender 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.
“For the Kenyan economy to function optimally the country should experience food security. This is because, having secure access to food can produce wide-ranging positive impacts, including economic growth, job creation and poverty reduction,” said Njoroge.
Besides crop farmers, livestock farmers seeking to acquire livestock will 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.
“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,” he said.
Farmers will be able to access credit for farm inputs through 100 agrovet shops branded as Faulu Kilimo Centers.
Besides crop farmers, livestock farmers seeking to acquire livestock will also be able to acquire loans 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.
