By George Munene
Family Bank has partnered with USAID’s Kenya Investment Mechanism, committing to disburse loans worth Sh500 million to agribusinesses in 17 counties over the next one year.
The initiative dubbed ‘Pay for Results’, will provide financing across the dairy, horticulture, livestock and energy agricultural value chains. The counties targeted are Homa Bay, Migori, Kisii, Kisumu, Siaya, Kakamega, Bungoma, Busia, Vihiga, Kitui, Makueni, Taita Taveta, Isiolo, Marsabit, Turkana, Garissa and Wajir.
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“The agri-business sector faces challenges accessing affordable credit and technical support. Through this partnership, we will provide affordable credit and capacity building to our SME customers to nurture sustainable agri-businesses,” said Family Bank Chief Executive Officer Rebecca Mbithi.
“Such private partnerships are important, especially in the wake of the COVID-19 constraints on the Kenyan agricultural market in order to ensure timely and continued operation of the food supply chain,” she added.
At the projects Roger Bird, USAID’s Kenya Investment Mechanism Chief said, “We are glad to have Family Bank join us to address the low lending to agriculture. We are constantly looking for partnerships with organizations that are eager to finance agribusiness. Through this partnership with Family Bank, we will create new financing products that better fit the cash collection cycle of agribusinesses in the selected counties.”
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Family Bank has also entered into a fodder financing agreement with Performeter Agribusiness and Ndumberi Dairy Farmers Co-operative Society that is set to double dairy farmers milk production to 30,000 liters per day.