The Agricultural Finance Corporation (AFC) has unveiled its 2023-2027 strategic plan, titled “Collective Ambition for a Thriving Kenyan Agriculture.” This ambitious plan aims to enhance financial inclusion, boost agricultural productivity, and promote sustainable practices across Kenya’s farming communities.
The strategic plan emphasizes providing affordable credit for smallholder farmers, offering capacity-building programs to support modern farming techniques, and improving market access. It aligns with Kenya’s Bottom-Up Economic Transformation Agenda (BETA), which focuses on grassroots economic development and food security.
During the launch event, Livestock Development Principal Secretary John Mueke highlighted the ministry’s commitment to developing Kenya’s agriculture and livestock sectors. “The Strategic Plan outlines our vision to increase agricultural productivity, promote climate-smart agriculture, and improve access to finance for farmers,” he remarked.
The PS also announced that the AFC will receive Sh1 billion from the national government and an additional Sh15 billion from Absa Bank in the next financial year to enhance financial access for farmers.
AFC Managing Director George Kubai stated that the Corporation aims to tackle challenges faced by farmers nationwide by offering solutions to help them thrive. “At AFC, we are focused on tackling every farmer’s obstacle by giving them solutions to help them prosper,” he said.
Kubai stressed the urgent need to address climate change and affirmed the Corporation’s commitment to integrating climate-resilient practices into financing mechanisms. “By promoting climate-smart agriculture, we aim to support sustainable agricultural development and help farmers adapt to and mitigate the impacts of climate change,” he added.
He also indicated that special attention will be given to smallholder farmers, youth, and women in agriculture to provide them with the necessary tools to succeed. “Special attention will be given to supporting smallholder farmers, youth, and women in agriculture, ensuring they have the financial tools necessary to thrive. To maximize our impact, we will upscale our wholesale lending model to account for 65 percent of our loan book, while dedicating 35 percent to retail lending,” Kubai said.
Tamara Cook, CEO of Financial Sector Deepening (FSD) Kenya, announced FSD Kenya’s commitment to supporting the Corporation in implementing its strategic plan. “We will review current AFC business models to ensure alignment with the BETA Agenda and the fourth medium-term plan (MTP IV) and develop new and innovative financing models that leverage digital technologies to improve access to finance for farmers, agri-MSMEs, youth, and other underserved groups,” Cook said.
The strategic plan is expected to significantly contribute to Kenya’s Vision 2030 and the Agricultural Sector Transformation and Growth Strategy (ASTGS) 2019-2029. By addressing the needs of small-scale farmers and focusing on sustainable growth, the AFC’s new strategic plan is poised to play a pivotal role in achieving Kenya’s economic and agricultural objectives.
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