This archive report was first published on 11 May 2020.
The National Treasury has allocated KSh1.5 billion to the Agricultural Finance Corporation (AFC) for the next three financial years, starting from 2020/21. The allocation is part of the Treasury's Programme-Based Budget presented to Parliament.
According to the Treasury, KSh500 million will be given to the AFC for each of the three financial years - 2020/21, 2021/22, and 2022/23. The funds will be used to further the AFC's programs, including credit extension and technical assistance to clients in agriculture, rural development, and food security.
As part of its Women Affirmative Action Window, the AFC aims to promote loaning to female-led enterprises, which previously accounted for only 5% of its lending. To achieve this, the corporation is seeking partners to provide financial concessional credit lines, guarantee mechanisms, risk-sharing facilities, innovation funds, grants for technical assistance, and grants for enabling environment and infrastructures.
As a wholly-owned Government Development Finance Institution (DFI), the AFC plays a crucial role in assisting the effective and peaceful transfer of land to indigenous farmers and injecting new capital to farm owners to spur development. It also provides credit for the sole purpose of developing agriculture.
Published on May 11, 2020
