NBK, firms pen deal for Sh2b facility to support agribusiness
Smart Harvest
By
Graham Kajilwa
| Sep 21, 2024
National Bank of Kenya (NBK) has unveiled a Sh2 billion agri-financing initiative to support farmer networks and households across the country.
The facility will provide tailored financial services to help farmers overcome challenges related to working capital, equipment procurement, and post-harvest processing.
Additionally, key stakeholders including Private Equity Support, Netherlands Enterprise Agency, Endless Africa and Grobox Ltd will collaborate with NBK to offer interventions and capacity-building opportunities that promote the adoption of technological agricultural solutions.
Speaking during the launch, NBK managing director George Odhiambo emphasised the importance of supporting the agri-business sector, given the challenges farmers face in accessing finance.
“We have collaborated closely with our partners to co-create Kilimo Konnect, a dynamic proposition tailored for farmers. This solution aligns with NBK’s sustainability agenda to provide green financing solutions for farmers to enable a sustainable future,” he said.
As part of the launch, NBK has provided two fully paid-up biodigesters to farmers, a 10 per cent facility discount for the first 10 biodigester loans taken up by cooperative members, and initiated pilot feed advisory services for 10 farmers over three months, among other incentives. In addition, farmers will have the opportunity to buy and install biodigesters through affordable financing options. These devices enable them to convert organic waste into energy for both household and farm use.
The initiative brings together various stakeholders, including dairy cooperatives, fintech companies, and technical advisors, to guide farmers in using biodigesters. This will ensure the proposition’s success by promoting the adoption of innovative technologies and practices in agriculture. Netherlands Enterprise Agency senior advisor on climate finance and energy Marnix Van Holland said the collaboration is crucial in fostering sustainable growth for biogas companies.
“By integrating financial actors, we believe Kenya is setting the stage for a robust and scalable clean energy future, aligning with broader goals of economic and environmental sustainability.”
Partner Private Equity Support managing partner Diana Gichaga said working with NBK to catalyse the “wholistic market-based approach” represents a way to utilise the biodigester to address smallholder farmer challenges on costs of inputs and energy. “Through provision of clean energy and access to the organic fertiliser by-product for rural and peri-urban households, NBK is catalysing climate smart solutions at a micro-level.
- Education CS silent as teachers, lecturers threaten to strike
- The new sound of faith: How youth culture has redefined gospel music
- Miss Universe Kenya winner to receive Sh1million and apartment
- Omanyala remains upbeat despite Olympics setback
- Why raising Gen Z kids is a tough balancing act for modern parents