Affordable credit is a need in the world of agribusiness and Family Bank has understood this need. The bank has committed Sh6 billion in affordable credit through 17 counties under the Unites States Agency for International Development (USAID’s) Pay for Performance initiative. All of this happens under the Kenya Investment Mechanism program.
The existing program aims to help businesses under horticulture, livestock and energy sectors etc. Over the next year throughout Homa Bay, Migori, Kisii, Kisumu, Siaya, Kakamega, Bungoma, Busia, Vihiga, Kitui, Makueni, Taita Taveta, Isiola, Marsabit, Turkana, Garissa and Wajir counties this program is expected to help numerous.
Rebecca Mbithi, the CEO of Family Bank said that the agricultural sector is one of the great contributors to the economy but continues to face increased challenges. Climate change over the past years being one of the major issues amongst a myriad of others.
Effects of climate change to farmers and the economy
“We recognize the need for agribusinesses to invest in climate-smart agriculture technologies in the fight against climate change” the CEO added.
The Ministry of Agriculture has made it clear that the situation of climate change has worsened over the years and has caused more agricultural loss.
Surveys show that between 2008 and 2011 extreme drought collectively cost the economy Sh1.33trillion with 72 percent of this being accounted to livestock.
“Agriculture is not only critical for our food supply but it is the foundation upon which we build societies. So it is necessary that we are more resilient and better equipped to deal with disasters. As a Bank, we are committed to extending our support both through affordable credit and capacity building to enable sustainability to businesses more so those in the agriculture sector,” Mbithi added.
Earlier, Family Bank had already extended Sh500 million within the same program to support agribusinesses.
Kenya Investment Mechanism is a USAID program that unlocks capital for SMEs and smallholder farmers in Kenya and East Africa, in partnership with banks and other financing organisations.