List of Financial Institutions that Provide Loans to Farmers in Kenya

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List of Financial Institutions that Provide Loans to Farmers in Kenya. With most of Kenya’s land mass being arid or semi-arid, only about 20 percent is suitable for farming. About 80 per cent of Kenya’s workforce engages in farming or food processing. Farming is typically carried out by small producers who usually cultivate no more than five acres using limited technology.

Farming in Kenya is the mainstay of the Kenyan economy, contributing 23 percent of the Gross Domestic Product (GDP)

Kenya Livestock Finance Trust

Kenya Livestock Finance Trust (K-LIFT), initially called Kenya Veterinary Association Privatization Scheme (KVAPS) has come a long way. The idea of its formation was conceived by the Kenya Veterinary Association (KVA) in 1986 when the government stopped the automatic employment of veterinary officers and started on the privatization of veterinary services in the country. They off up to a maximum of Ksh. 1.2 million upon payment of Ksh. 250 application fee, completing a business proposal and presenting collateral or securities

Phone: +254 20 2496915 | Mobile: +254 728 416048 / +254 734 148717

Equity Bank

Equity bank offers the following loans

• Micro Agribusiness Loan is designed to finance small and medium agricultural producers and micro agriculture-based entrepreneurs/agro-traders.
• Commercial Agriculture Loan – This loan targets medium and large-scale farmers dealing in any aspect of farming, from large-scale agricultural based foundations to medium and large-scale agricultural traders and processors.
• Farm Inputs Loan This is a short term loan ranging from Kshs.1,000 to Kshs.100,000 paid within 1 year.
• Kilimo Biashara There three types in this category where the amount ranges from Kshs.1, 000 to 100,000 for Kilimo biashara small scale payable in one year, amounts above Kshs. 100,000 for Kilimo biashara large scale paid in 3 years and loan amount depending on individual requirements and the ability to repay for Kilimo Biashara Agribusiness.
• Kilimo Supa The loan amount in this category ranges Kshs 5,000 to 500,000from payable within one year. This facility is intended for microenterprises dealing in livestock and cash crop production and to agricultural traders and agro-processors. Interested farmers need not have a remittance account.
• Kilimo Maendeleo The loan which ranges from Kshs 5,000 to 500,000 is paid within 24 months. Interested farmers must have an account to qualify for this facility. This is meant for small and medium scale farmers who want to invest in farm developments such as the building of farmhouses, farming expansion, purchase of livestock and farm fixed assets.
• Kilimo Kisasa The loan amount is over Kshs. 30,000 paid in 24 months and intended for acquiring farm machinery, tools and equipment such as water pumps, drip irrigation kits and greenhouses.

Co-operative Bank of Kenya

Below are some of the Agri Co-operatives offered by Cooperative Bank to both the small scale and large scale farmers in the country in financial aid through loans.

Maziwa Plus Loan

Cooperative Bank of Kenya gives Maziwa Plus Loans to individuals to enable Dairy groups/ associations, societies, individuals and dairy companies access loans for dairy production and value addition equipment including buying additional cows and chilling equipment.

Tegemeo Loan

These are given by the bank to farmers to cover the short term financial needs of farmers supplying accredited buyers and aggregators through advances based on their deliveries.

Vuna Kilimo Loan

This enables individuals, cooperatives or corporate firms undertaking agricultural production activities access loans for purchase of farm inputs, equipment, set up greenhouses and irrigation systems.

Nafaka Loan Small-Scale

This kind of loan offered to small scale farmers to enable them access farm inputs for production of cereals which include maize, wheat, barley, sorghum, rice and millet among others.

Nafaka Large-Scale

Loan offered to large-scale farmers to enable them access farm inputs, working capital, farm equipment and other social needs e.g. school fees, medical bills, furniture etc

Stabex fund

To meet the short-term financial needs of coffee societies and farmers. It is offered in form of Farm Input Loans (FILS)
To enable coffee farmers to access to farm inputs.

Nafaka Loan Agro-processor/dealers

The loan offered to agro-dealers, grain traders and processors for working capital requirements (Capital investments, stocking their businesses and day to day operations).

Cherry Advance Payments (CAPS)

Advance payment to coffee farmers against actual coffee deliveries. It also facilitates coffee picking and delivery

Working capital loans (Individual)

Enables coffee farmers to cater for operations. This is Applicable to individuals/coffee estates only.

Used for day-to-day coffee farming activities e.g. weeding

Asset Finance (AF)

To enable clients to acquire assets mainly motor vehicles and machines.
Used to finance the client to purchase motor vehicles and machines both new and used

Insurance Premium Finance (IPF)

Enable the society to pay the insurance premium for their assets.
Used to assist societies in paying insurance premiums for their properties

 Vuna Kilimo Biashara

To enable individual farmer, associations/group/co-operatives to access farm inputs and agro-dealers access working capital under the Ministry of Agriculture credit guarantee scheme.
Only Farmers should be engaged in the production of cereals and horticulture.

Juhudi Kilimo

Juhudi Kilimo provides microfinance loan products that allow Kenyan smallholder farmers to access high-quality agricultural assets that enhance the productivity of their farms.

• The Priory, 2nd floor,
  Argwings Kodhek Road,
  P.O Box 25441-00100, Nairobi.
• +254 709 69 20 00
• info@juhudikilimo.com

Brookside Dairy Ltd

Brookside Dairy Limited, often referred to as Brookside Dairies, is a dairy processing company in Kenya, the largest economy in the East African Community. The company offers fresh pasteurized milk, cream, butter, yogurt, ghee, and long life milk products in Indian Ocean Islands, East Africa, Rwanda and Burundi.

Brookside Dairy supply farm inputs and animal feeds on credit to dairy farmers. They have a loan facility which is lent to farmers through Kenya Commercial Bank

Kenya Women Finance Bank

The Kenya Women Finance Trust has a livestock loan product specially designed for rural women. Women who are interested in dairy farming can access this credit facility to start or improve dairy farming. Animals are identified by the women and inspected for health by veterinary personnel and KWT team. If the animal is cleared it is insured by Jubilee Insurance, and KWFT pays for the cow.

Other aspects of livestock financing covered by KWFT are purchasing goats and acquisition of biogas digesters.

Agricultural Finance Corporation

AFC provides loans to individuals or groups carrying out agricultural activities. They have branches in most parts of the country. In livestock, they finance dairy and beef production, sheep and goat production, beekeeping, piggery, poultry and fish production. These loans are repaid in periods between 2 and 5 years. To qualify for the loans farmers must provide securities and present a suitable and viable project proposal.