Faulu Bank Unveils Sh1.5B to Support Farmer’s Access Inputs

In an effort to increase food security in the nation, Faulu Microfinance Bank has set aside Sh1.5 billion to assist farmers in financing the purchase of farm and livestock inputs.

In accordance with the financing agreement, the bank aims to provide farmers with adaptable and reasonably priced agricultural loans repayable in lump sums or through moratoria.

This will coincide with different farming and livestock seasons.

In order to reduce the risk of loan funds being diverted to competing demands, the Bank has also partnered with over 100 Agrovet stores branded as Faulu Kilimo Centers where farmers can go and obtain finance for inputs.

“For the Kenyan economy to function optimally the country should experience food security. To realize this, 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,” said Faulu Microfinance Bank Managing Director Apollo Njoroge.

Together with crop farmers, livestock farmers who want to buy livestock can go to the bank and get loans designed to pay for the acquisition of livestock, animal feed, and the building of animal pens.

The Bank is also keen to provide livestock and crop insurance options.

Recent data from the Food and Agricultural Organization-FAO of the United Nations show that the agriculture industry in Kenya provides about 33% of the nation’s GDP.

Additionally, the industry employs 70% of the rural population and more than 40% of the overall workforce.

Yet, as smallholder farmers and agricultural firms continue to have difficulties expanding their operations and raising the quality of agriculture.