Low financial literacy holding back more funding to farmers, says top bank official

Many farmers remain ineligible for financing due to a lack of consistent transactions through bank accounts, denying lenders the financial data needed to assess creditworthiness. [iStockphoto]

Kenya’s push for food security and agricultural mechanisation continues to face a major hurdle, limited access to affordable financing for farmers, driven largely by low financial literacy and weak banking records.

Speaking during the signing of a financing partnership between Inchcape Kenya and NCBA, Group Director for Asset Finance Lennnox Mugambi said the biggest gap locking farmers out of credit is not lack of funding, but lack of consumer education.