This archive report was first published on 21 December 2021.
On December 21, 2021, Family Bank and the United States Agency for International Development (USAID) announced a partnership to provide a Ksh6 billion credit facility to Kenyan agribusinesses.
The credit facility, which is part of USAID's Pay for Performance initiative, aims to support businesses across the agricultural value chains, including dairy, horticulture, livestock, and energy sectors, among others.
According to Family Bank Chief Executive Officer Rebecca Mbithi, the agricultural sector is a significant contributor to Kenya's economy, but it continues to face challenges that hinder its growth.
"We recognise the finance need for agribusinesses to scale climate-smart agriculture technologies to enhance the climate resilience for agricultural value chains," said Mbithi.
Climate change has worsened weather-related risks such as droughts, floods, pests, and diseases, exposing farmers to huge losses. Estimates from the Ministry of Agriculture show that the economy lost Ksh 1.33 trillion as a result of extreme drought between 2008 and 2011, with the livestock sub-sector accounting for 72 percent of this loss.
The 17 counties that will benefit from the funding are Homa Bay, Migori, Kisii, Kisumu, Siaya, Kakamega, Bungoma, Busia, Vihiga, Kitui, Makueni, Taita Taveta, Isiolo, Marsabit, Turkana, Garissa, and Wajir.
Family Bank had earlier in the year extended Ksh500 million to support agribusinesses as part of USAID's effort to unlock KES 40 billion to SMEs in Kenya and East Africa.
