Agricultural Finance Corporation (AFC) Managing Director George Kubai speaks during the launch of 2023-2027 strategic plan in Nairobi [Nanjinia Wamuswa, Standard]

Inadequate financing limits farmers’ ability to invest in essential resources like quality seeds, fertilisers, and technology, leading to lower yields and productivity. It also hinders risk management, causing financial instability and potential crop failures.

Speaking during the launch of Agricultural Finance Corporation (AFC) strategic plan, Managing Director George Kubai (pictured) emphasised the importance of access to financing for agricultural development and rural prosperity.

“Facilitating financial access, we empower farmers to make productive investments, mitigate risks, stabilise income fluctuations, access markets, embrace technology, and ultimately elevate their livelihoods and well-being,” he said.

Kubai highlighted that Kenya’s commercial banks allocate only 3.6 per cent of their lending portfolios to agriculture. Demand for agricultural credit exceeds Sh200 billion annually, yet AFC can only approve around Sh 4.5 billion in support out of the Sh 15 billion requested each year.

The AFC’s strategic plan aims to catalyse growth, ensure sustainability, and drive inclusivity within the agricultural sector through eight pillars, including financing agri-food value chains, promoting climate-smart agriculture, and enhancing financial inclusion. “This plan is a seed and the foundation for a thriving agricultural sector,” Kubai added.

Two new financial products were introduced: Asset Finance, which allows farmers to acquire machinery using the assets as collateral, and Open-Line Credit for Agribusiness, which consolidates loan charges every six years.

Agriculture Cabinet Secretary Mithika Linturi praised President William Ruto for allocating Sh1 billion to AFC and announced additional support from Afriexim Bank and the Indian Exim Bank.



“The AFC’s strategic plan comes at a crucial time. By providing tailored financial solutions, AFC can empower farmers, agribusinesses, and agricultural value chain actors, enhancing productivity, creating jobs, boosting exports, and improving food security,” Linturi said.

Tamara Cook, CEO of Financial Sector Deepening Kenya (FSD), committed to supporting AFC in implementing innovative financing models and a Warehouse Receipt System to enhance liquidity and reduce post-harvest losses. “Data from the 2021 FinAccess survey shows that farming as a source of livelihood is in decline from 33 percent in 2016 to 18 percent in 2021. We must address this to avoid food insecurity in our smallholder farmer-driven country,” she noted.

Felicity Nkirote, chairperson of the Warehouse Receipt System Council, detailed the use of warehouse receipts as collateral, with 11 certified warehouses already facilitating credit access for farmers.

“We congratulate AFC for re-engineering and leading the way in terms of innovation of credit management, where together with the National Treasury, we aim to phase out the traditional collateral of land titles for credits,” she stated.

Eng John Mruttu, chairman of the AFC Board of Directors, reaffirmed their commitment to addressing agricultural challenges and driving sustainable growth through the strategic plan and innovative financial solutions.



“This strategic plan underscores AFC’s steadfast dedication to empowering a new generation of farmers and agribusinesses. Through innovative financial solutions, strategic collaborations, and an emphasis on technological advancements, we aspire to drive sustainable growth and development in the agricultural sector,” he explained.

The Corporation is also pursuing Sustainability Standards and Certification with the European Organisation for Sustainable Development to ensure long-term success.