Kenyan farmers get finance boost
A new initiative aimed at improving access to finance for Kenyan farmers has been launched by the country's Ministry for Agriculture.According to the Nairobi Star, the Credit Guarantee Scheme will see loans provided to farmers in a bid to boost output and address the issue of food shortages.
The money will be offered at a reduced rate and Permanent Secretary of the Ministry of Agriculture Romano Kiome stated the move is a response to the Central Bank of Kenya's annual report, which revealed "only three per cent of the money borrowed from banks is channelled towards agriculture".
"It should actually be 15 to 20 per cent," he remarked.
A total of four banks are taking part in the initiative, however Dr Kiome did not reveal their names, nor the amounts they will be given by the ministry to pass on to farmers.
Small and medium-sized enterprises in the country are also receiving financial backing from the Government, following the introduction of a Sh3.8 billion (€29.6 million) revolving fund aimed at businesses located in rural areas, the news source recently revealed.