The Agricultural Finance Corporation (AFC) has introduced its strategic plan for 2023-2027, titled “Collective Ambition for a Thriving Kenyan Agriculture.”
This plan aims to enhance financial inclusion, increase agricultural productivity, and promote sustainable practices within Kenya’s farming communities.
The focus is on providing affordable credit to smallholder farmers, offering capacity-building programs for modern farming techniques, and improving market access.
Aligned with Kenya’s Bottom-Up Economic Transformation Agenda (BETA), the plan emphasizes grassroots economic development and food security.
During the launch event, Livestock Development PS John Mueke highlighted the ministry’s commitment to advancing 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.
PS Mueke also revealed that the AFC will receive Sh1 billion from the national government in the next financial year, along with an additional Sh15 billion from Absa Bank to enhance farmers’ financial access.
AFC Managing Director George Kubai expressed the corporation’s goal to overcome challenges faced by farmers nationwide by providing them with essential solutions.
“At AFC, we are focused on tackling every farmer’s obstacle by giving them solutions to help them prosper,” he stated.
Kubai also stressed the importance of addressing climate change, affirming AFC’s commitment to integrating climate-resilient practices into their 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 said.
Special attention will be given to smallholder farmers, youth, and women in agriculture, providing them with necessary financial tools.
“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 added.
Tamara Cook, CEO of Financial Sector Deepening (FSD) Kenya, announced FSD Kenya’s commitment to supporting the Corporation in executing 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 anticipated 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 expected to play a crucial role in achieving Kenya’s economic and agricultural goals.
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