Co-Op Bank Kenya Offers Loans to Aid Agribusinesses

Co-operative Bank has offered considerate loans for farmers in the horticulture, floriculture, and cotton sector in order to grow and develop Agribusiness in Kenya. Agriculture contributes about a third of Kenya’s gross domestic product but commercial lending to this sector remains low and it limits the ability of producers and processors to invest in sustainable production practices. The co-operative bank offers the loans in an effort to provide a support mechanism to assist farmers to make a successful pivot towards sustainable, climate-smart agriculture.

Some of the financing options offered by the bank are Horticulture and Floriculture Loan and the Cotton Loan.

Horticulture and Floriculture Loan

This solution enables farmers to purchase land, develop the land by installing infrastructure for irrigation, greenhouses, and solar energy. It also enables farmers to buy assets that enhance production such as cold rooms and refrigerators.

Requirements:

• Duly completed loan application form
• Have an account with Cooperative bank (new or existing)
• 3 years audited book of accounts.
• Management account where applicable.
• 12 month Bank Statement.
• Cash flow projection.
• Minimum Financing of Ksh.100,000
• Maximum Financing: Dependent on repayment ability

Cotton Loan

This finance option is for various cotton value chain players such as cotton farmers, textile millers, and ginneries. It also ranges from farm development finance to working capital and CAPEX.

Requirements:

• 3- year historical production records
• Year yield production projection
• Cash-flow projections
• 3 years audited book of accounts.
• Borrowing powers (for Co-operative societies only)
• 12-month Bank Statement
• Minimum Financing: Ksh.50,000
• Maximum Financing: Dependent on society’s repayment ability.