Agriculture drives Kenya’s economy, but access to affordable credit still blocks many farmers from scaling up. That is where the Agricultural Finance Corporation steps in.
As a government-owned lender focused on agriculture, AFC provides targeted financing that supports farmers, agribusiness traders, and institutions. If you want to grow your farm, invest in machinery, or expand agribusiness operations, understanding Agricultural Finance Corporation loan products can unlock real opportunities.
This guide breaks down each product clearly so you can choose what fits your needs and move faster.
Comprehensive List of Agricultural Finance Corporation Loan Products in Kenya
Below is a detailed breakdown of the main Agricultural Finance Corporation loan products, including features, what they finance, and eligibility requirements.
1. Machinery Loan
This loan helps farmers acquire equipment that boosts productivity and efficiency.
Key Features
- Designed for individuals and groups
- Repayment period of 2–5 years with annual installments
Items Financed
- Farm machinery and implements
- Pick-ups and trucks for transporting produce
Requirements
- Written quotation from a reputable supplier
- Joint registration of machinery with AFC
- Comprehensive insurance cover
- Minimum deposit of 30% for new machinery and 50% for reconditioned equipment
This option works best if you want to mechanize operations and reduce labor costs.
2. Agribusiness Loan
This product targets traders and entrepreneurs in the agricultural value chain.
Key Features
- Suitable for individuals and groups
- Repayment period up to 3 years
- Interest rate of 10% per annum
Items Financed
- Trading, transport, marketing, and processing of farm produce
Requirements
- Proof of business viability
- Tangible security
- 20% equity contribution
If you run or plan to start an agribusiness, this loan gives you the working capital to grow.
3. Livestock and Fisheries Development Loan
This loan supports farmers engaged in animal and fish production.
Key Features
- Repayment period of 2–5 years
- Available to individuals and groups
Items Financed
- Dairy and beef farming
- Sheep and goat rearing
- Poultry and piggery
- Beekeeping
- Fish farming
- Working capital
This product is ideal if you want to diversify into livestock or scale existing operations.
4. Cash Crop Loan
This facility focuses on long-term crop production.
Key Features
- Repayment period of 2–5 years
- Available for individuals and groups
Items Financed
- Crop establishment and maintenance
- Processing equipment
- Operational costs
Supported Crops
- Tea, coffee, sugarcane, pyrethrum
- Cashew nuts, citrus, mangoes, bananas, stevia
Requirements
- Tangible security
- Approved crop varieties
- Access to nearby processing facilities
This loan suits farmers investing in commercial crops with stable market demand.
5. Horticulture and Floriculture Development Loan
This loan targets high-value crop farming.
Key Features
- Repayment period of 2–5 years
- Available to individuals and groups
Items Financed
- Fruits, vegetables, and flowers
- Greenhouses and irrigation systems
- Water and electricity installations
- Harvesting and packaging equipment
- Labor and operational costs
Requirements
- Relevant experience
- Regulatory compliance
- Adequate water supply
Horticulture offers high returns, but it requires planning and resources, which this loan provides.
6. Water Development Loan
Water is critical in farming, especially in dry regions.
Key Features
- Requires proof of adequate water sources
- Must have necessary permits
- Water testing required for boreholes
Items Financed
- Boreholes, shallow wells, and water tanks
- Pumps, pipes, and irrigation systems
- Farm dams and related infrastructure
Requirements
- Suitable crop selection
- Tangible security
- Minimum 5 acres for maize and wheat
This product helps farmers build irrigation systems and reduce dependence on rainfall.
7. Seasonal Crop Credit
This loan supports short-term food crop production.
Key Features
- Repayment period of up to 12 months
- Available for individuals and groups
Items Financed
- Production and harvesting costs
Supported Crops
- Maize, wheat, potatoes, rice, and other short-season crops
Requirements
- Suitable crop selection
- Tangible security
- Minimum acreage of 5 acres for maize and wheat
This is a practical option if you need quick financing for a planting season.
8. School-Based Loan
This loan supports institutions running agricultural projects.
Key Features
- Repayment period of 1–5 years
- Flexible security requirements
- Affordable interest rates
Items Financed
- Crop and livestock production
- Farm infrastructure and machinery
- Agribusiness and horticulture projects
Requirements
- Project proposal
- AFC account (Vuna relationship account)
- Adequate land
Schools use this loan to support feeding programs and generate income.
9. AFC and Feed the Future Co-Financing Program
This initiative was implemented in partnership with USAID under the Feed the Future program.
Key Highlights
- Focused on increasing agricultural productivity
- Aimed to reduce poverty and malnutrition
- Supported crops and dairy value chains
Although program timelines vary, it demonstrated how blended financing can strengthen Kenya’s agricultural sector.
How to Choose the Right Agricultural Finance Corporation Loan Product
Choosing the right Agricultural Finance Corporation loan product depends on your goals, scale, and resources.
Understand Your Farming Needs
Start by identifying what you want to achieve. If you need equipment, go for the machinery loan. If you want to grow crops quickly, Seasonal Crop Credit makes more sense. Align the loan with your production cycle and expected income.
Evaluate Your Financial Readiness
Look closely at deposit requirements, repayment timelines, and security. Some loans require equity contributions or tangible collateral. If you cannot meet those conditions, your application may fail.
