National Bank of Kenya launches $15 million fund to support agriculture
In response to challenges in agricultural financing, the National Bank of Kenya (NBK) has launched a $15 million (Sh2 billion) fund to support the agricultural sector. The scheme, dubbed Kilimo Konnect , aims to facilitate access to loans for Kenyan farmers to finance their operations, acquire equipment and manage post-harvest operations.
A fund dedicated to agricultural modernization and technology
The Kilimo Konnect initiative is not just about providing credit. According to George Odhiambo , Managing Director of NBK, the programme also includes training to encourage the adoption of new agricultural technologies . These trainings will be conducted in partnership with Private Equity Support (PES) , the Netherlands Enterprise Agency (RVO) and Grobox Limited .
The aim is to strengthen the sustainability of agriculture in Kenya by equipping farmers with the tools to face modern challenges and position themselves in a competitive market. Furthermore, this programme is part of NBK’s commitment to green financing , aimed at ensuring a sustainable future for the agricultural sector.
Low access to credit for Kenyan farmers
Despite the importance of agriculture to the Kenyan economy, contributing 21.3% of GDP and employing about 33% of the workforce , the sector continues to receive little financial support . In 2022, only 3.4% of commercial bank loans to the private sector went to agriculture, according to data from the Central Bank of Kenya (CBK) . This imbalance is mainly attributed to climate risks , including drought, which affect farmers’ ability to repay their loans.
Conclusion
The launch of the Kilimo Konnect Fund marks a turning point in agricultural financing in Kenya. In addition to providing financial resources, the program integrates training and technology solutions to modernize agriculture and improve its resilience. In response to historically low access to credit, the fund aims to revitalize a sector critical to the Kenyan economy and prepare farmers for a more sustainable and competitive future.
