Family Bank has committed Sh6billion to extend affordable credit to agribusinesses across 17 counties through the USAID’s Pay for Performance initiative under the Kenya Investment Mechanism program.
The initiative targets businesses across the agricultural value chains such as dairy, horticulture, livestock and energy sectors, among others, for the next one year.
The first stage of the initiative targets businesses in Homa Bay, Migori, Kisii, Kisumu, Siaya, Kakamega, Bungoma, Busia, Vihiga, Kitui, Makueni, Taita Taveta, Isiolo, Marsabit, Turkana, Garissa and Wajir counties and its environs.
“As a bank, we recognise the finance need for agribusinesses to scale climate-smart agriculture technologies to enhance the climate resilience for agricultural value chains,” said Family Bank Chief Executive Officer Rebecca Mbithi.
The Ministry of Agriculture in Kenya indicates that climate change over the years has worsened weather-related risks such as droughts, floods, pests and diseases, exposing farmers to huge losses.
Estimates from the ministry show that the economy lost Sh1.33 trillion as a result of extreme drought between 2008 and 2011 with the livestock sub-sector accounting for 72 per cent of this loss.
“We are committed to extending our support both through affordable credit and capacity building to enable sustainability to businesses more so those in the agriculture sector,” Mbithi added.
The bank had earlier in the year through the same program extended Sh500 million to support agribusinesses as part of USAID’s effort to unlock Sh40 billion to SMEs in Kenya and East Africa.