Faulu Bank rolls out Sh1.5 billion financing options for farm inputs
By Peter Ochieng
Faulu Microfinance bank on Monday announced a series of new measures aimed at financing farmers to acquire farm inputs for both livestock and crop farming.
The move seeks to enhance food security amidst the ongoing drought that has affected over half of the 47 counties, by ensuring that Kenyans get access to quality and nutritious foodstuffs.
As such, the bank is offering flexible and affordable agribusiness loans repayable in bullets or through moratoriums to farmers.
In addition, the bank has announced partnerships with the Agrovet shops branded as Faulu Kilimo Centers, where farmers will be financed to ensure they access quality inputs and minimize the diversion of loan funds to other competing needs.
The financial options have been capped at Sh1.5 billion.
Faulu Microfinance bank managing Director Apollo Njoroge said food security is at the centre of Kenya’s economic growth.
“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,” said Njoroge.
“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.”
Besides crop farmers, livestock farmers seeking to acquire livestock will approach the bank and acquire loans targeted to finance the purchase of livestock, animal feeds and construction of animal structures.
The bank is also keen on offering insurance solutions for crops and livestock.
Recent data from the United Nations Food and Agriculture Organisation (FAO) indicate that Kenya’s agricultural sector contributes approximately 33 per cent of the country’s Gross Domestic Product (GDP).
Additionally, the sector employs more than 40 per cent of the total population and 70 per cent of the rural population.