Agribusiness ventures can face significant challenges even before they fully take off. With unpredictable markets, changing weather, and the risk of disease, the possibility of financial loss is always close by. Just one setback can significantly affect production and returns for farmers.
Farmers must master the art of delayed gratification, working tirelessly without knowing whether their efforts will yield positive outcomes. Additionally, successful farmers require consistent financial investment to remain profitable. Since farming practices take up significant resources, many farmers rely on loans and grants to fund their business.
In Kenya where agribusiness remains the backbone of our economy, reliable funding is a vital part of the industry’s long-term success. Fortunately, there are organizations that step in to offer farmers financial support that allows them to sustain or grow their business. Here are some organizations that provide loans and grants to farmers in Kenya.
Juhudi Kilimo
This is one of the leading microfinance institutions in Kenya that offers affordable loans to small scale farmers. Their loan products are tailored to the farmer’s needs including farm equipment loans, farm animal loans and crop farm loans. To qualify for a loan, you must be over 18 years old and have an income-generating agribusiness within 100km of a Juhudi Kilimo branch. You can apply directly through their website.
Musoni Microfinance
Musoni Microfinance prides itself in being a cashless, fully-mobile financial institution that enables entrepreneurs access banking services from anywhere. They have partnered with Grameen Foundation to offer agricultural loans in Kenya dubbed Kilimo Booster. The loan amount ranges from Ksh 5,000 to Ksh 350,000 and the duration of payment ranges between 3 months to 36 months. To be eligible, you need to have an agribusiness that has been in operation for 6-12 months and have an M-PESA or bank account balance higher than Ksh 140,000. To apply, visit one of their branches or contact them at 0709761111/ 0790761111.
BIMAS Kenya
Growth and sustainability are at the core of BIMAS Kenya’s purpose. They offer loans that are not only affordable but also flexible to meet the needs of their clients. They have three types of agribusiness loans depending on the farming activity the farmer is engaged in. Additionally, they offer a high loan limit of up to Ksh 5,000,000 so you can scale your agribusiness to its full potential. To apply for a loan, fill out the form on their website.
ECLOF Kenya
Founded in 1994, ECLOF has been a trusted and reliable partner to small and medium entrepreneurs in Kenya, offering them financial and non-financial services. They have a wide network of branches that target low-income earners in rural areas. One of the many products they offer include agribusiness loans which enable farmers to acquire better livestock, farm machinery and seedlings. The loan amount is given based on the farmer’s need and credit history. Additionally, they offer a flexible payment plan making it easier for the farmer to focus on their business. You can contact them through +254 721 344 699 or [email protected].
Agricultural Finance Corporation
This is the leading government-owned credit institution that provides credit for agricultural development. They offer loans to farmers, cooperatives, private companies and industries engaging in agriculture-related activities. Their loans attract a 10% interest per annum which is fairly low compared to other financial institutions. To qualify, you need a viable proposal and a tangible security deposit such as a Title deed and cash deposits. To apply for a loan, you can use the e-citizen platform, their Vuna app or visit any of their physical offices.
Commodities Fund
Commodities Fund is a government agency that was established in 2014 to consolidate some older agricultural funds into one. Their mandate is to provide affordable and accessible loans to the agricultural sector including farmers, cooperatives and value-chain players. Interest rates range between 3% to 7.5% with lower rates given to youth and women. Currently, the fund focuses on specific crops including coffee, coconuts and sugar cane. To apply, visit their head office at Utalii House in Nairobi or their regional offices and fill out the application form. For more information, contact them through +254728602427/8, +254 737204278/9 or [email protected].
Nuru Kenya
Nuru is an international organization that promotes agriculture-led investments in rural communities. Some of the services they offer include market linkage, training, farm equipment supply and financial support. Their aim is to eradicate extreme poverty by assisting farmers to establish and maintain sustainable agribusinesses. They work with a wide range of agripreneurs such as dairy farmers, bee keepers, and crop farmers. Farmers can join Nuru-supported cooperatives or groups to access loans and other services. Their current focus is on three counties i.e. Migori, Baringo and Homa Bay.
One Acre Fund
By equipping farmers with everything they need for their business, One Acre Fund helps them to increase their productivity and income significantly. They offer farm inputs and machinery on loan, financial and agricultural training and market support which create pathways to prosperity. The loan service is known as Tupande and farmers can access it by joining a recognized group and working with a field officer. You can reach their toll-free customer care line 0800 723 355 for more information.
Kenya Commercial Bank (KCB)
KCB is one of the few banks that offer loans tailored for agribusinesses. They include Mavuno Tea Loan, Farm Development Loan, Horticulture Loan, and Contracted Crop Loan among others. These loan products help farmers expand their business or cushion them in case of low yields. The loan amount is up to Ksh 250 million and the repayment period ranges between 1-5 years. To apply or enquire, visit their website and fill out the form.
Equity Bank
Since its humble beginnings to date, Equity Bank has been providing financial services to farmers who were unable to access the services from other banks due to high fees. Some of the loan products that are tailored for agripreneurs include Kilimo Maendeleo Loan, Micro Agribusiness Loan, and Pamoja Kilimo Loan. To apply, you can visit their offices, use their mobile app or dial *247*6# on your Equitel line.