Banks coaxed to lend more to agriculture

Kenya’s Ministry of Finance has launched a programme in collaboration with the International Fund for Agricultural Development (IFAD) aimed at spurring lending to the agricultural sector. IFAD has extended a grant-loan of $29.31 million to Kenya to provide better access to financial services, increase incomes, and improve production and outputs in the rural smallholder farm and off-farm sectors. Commercial banks limit lending to the agricultural sector due to perceived high risks associated with it, which hampers smallholder farms’ efforts to increase productivity. Read more here.
Michael Karanja

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2 Responses

  1. I believe you are right completely

  2. That’s a lot of money. Hopefully the agricultural sector will pick up soon.

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