Family Bank Bags Sh20M Facility to Support Dairy Sector

Family Bank has acquired a Sh20 million loan portfolio guarantee facility from FSD Africa to allow it to accelerate lending to dairy farmers, cooperatives, dairy companies, and input suppliers.

The two-year agreement credit guarantee facility will make it easier to purchase inputs for the dairy industry, such as fodder, concentrates, minerals, services for artificial insemination, and feed propagation.

“The dairy value chain has the potential to generate employment and exponentially grow our economy. However, it continues to be impacted by the long severe drought and high cost of animal feed that has in turn reduced milk production in the country,” said Family Bank Chief Executive Officer Rebecca Mbithi.

The CEO said that Family Bank will increase lending to the dairy industry through this credit facility and assist them in overcoming their current difficulties.

The Kenya Dairy Board estimates that the dairy industry contributes 14% of Kenya’s GDP and that smallholder dairy farmers, who produce 56% of the nation’s milk, are principally responsible for this.

Family Bank previously partnered with Performeter and set aside Sh1 billion to aid dairy cooperatives in purchasing fodder, as well as with the Ndumberi Dairy Producers Co-operative Society to expand accessibility to high-quality fodder for 1,000 dairy producers.