KENYA – The National Bank of Kenya (NBK) has unveiled a 2 billion Kenyan shilling (US$15 million) fund to revitalise the country’s agricultural sector by providing much-needed financial support to farmers.
Dubbed Kilimo Konnect, the initiative seeks to address agriculture’s chronic underfunding by providing farmers with financial support for various activities, including operational costs, equipment purchases, and post-harvest processing.
Agriculture contributes 21.3% to Kenya’s GDP and employs approximately 33% of the active population, yet lending by financial institutions to the sector remains low due to the associated risks. In 2022, the agricultural sector captured only 3.4% of the total commercial bank loan portfolio, according to the Central Bank of Kenya (CBK).
Speaking during the launch on September 19, George Odhiambo, NBK’s Managing Director, highlighted the bank’s commitment to transforming Kenya’s agricultural landscape.
“This solution is part of NBK’s sustainability agenda, which is to provide green financing solutions to farmers to enable them to secure a sustainable future,” said Odhiambo.
Odhiambo revealed that one of Kilimo Konnect’s key objectives is to facilitate the adoption of agricultural technology among Kenyan farmers.
The initiative will introduce innovations such as precision farming, advanced irrigation systems, and post-harvest storage solutions. These technologies can help farmers optimize their resources, reduce costs, and increase yields, all while contributing to environmental sustainability.
In addition to offering loans, the program will provide training and capacity-building measures for farmers in partnership with Private Equity Support (PES), the Netherlands Enterprise Agency (RVO), and Grobox Limited.
With global partnerships like the Netherlands Enterprise Agency (RVO), Kilimo Konnect is poised to bring world-class expertise to Kenyan farmers, ensuring they are well-prepared to tackle the challenges of modern agriculture.
These collaborations aim to promote the adoption of modern technologies, improving efficiency and sustainability in farming practices.
Addressing the financial gaps in agriculture
The financial strain on Kenya’s agricultural sector has been exacerbated by adverse climate conditions, such as droughts, which have affected farmers’ ability to repay loans and access new ones.
Kilimo Konnect seeks to change this narrative by offering tailored financial products that mitigate risks and encourage sustainable farming practices.
With a focus on green financing, the program aims to empower farmers with the tools and technologies needed to improve productivity and safeguard their operations against climate challenges.
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