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Faulu Bank sets aside Sh1.5B to finance farmers

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By George Munene

Faulu Microfinance Bank has set aside Sh1.5 billion aimed at financing livestock and crop farmers to acquire farm inputs. 

The funds will be distributed through partnerships with over 100 Faulu Kilimo Centers which will act as agrovet shops where farmers will get financing for agri inputs.

The bank also seeks to offer farmers flexible and affordable agribusiness loans repayable in bullets or through moratoriums. This will align with various seasons of livestock and crop production.

The program will finance crop planting materials such as farming tools, seeds, and fertilisers. Loans for livestock farmers will be used to fund the purchase of livestock, animal feeds, and the construction of animal structures.

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The program is also aimed at improving food security in the country with Kenya facing its worst drought in over 40 years which has left more than half the country’s counties food insecure.

According to an Agriculture Sector survey by the Central Bank of Kenya (CBK), poor and unreliable rains and high costs of inputs have been the key drivers of high food prices in the country.

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“For the Kenyan economy to function optimally the country should experience food security. This is because, having secure access to food can produce wide-ranging positive impacts, including economic growth, job creation, and poverty reduction. 

To realize this, we as a bank seek to enhance agriculture-led economic growth, improve nutrition outcomes, strengthen county government capacity, increase resilience, and build sustainable market systems by supporting farmers to access affordable and flexible financing and insurance solutions”, said Faulu Bank Managing Director Apollo Njoroge.

The bank is also looking at providing insurance cover to crop and livestock farmers.

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