At least 10,000 farmers across 12 counties in Kenya are set to access credit from Faulu Bank under a new facility that includes the US Agency for International Development (USAID).
Faulu Bank will provide the Ksh100 million. USAID will back Faulu with Ksh12.9 million that the lender will use to hire and train staff to assess credit risks and portfolios of the farmers applying for loans.
It will be a one-year credit facility supported by the USAID-funded Feed the Future Kenya Crops and Dairy Market Systems Activity (KCDMS). Already, USAID-KCDMS works with over 40, 000 farmers in various counties to improve access to credit and offer financial literacy training
The Faulu Bank program is intended to make agriculture a more profitable venture for farmers in Kenya and includes financial literacy training as well.
Farmers will be able to use the funds to purchase farm inputs to boost production volumes.
“This partnership will not only allow us to grow our agriculture financing segment but also enable us to train at least 10,000 farmers on how to take loans, grow their revenues and how to flag off challenges in their farming journey,” explained Faulu Bank Managing Director Apollo Njoroge.
The counties included are Migori, Homabay, Kisumu, Kisii, Siaya, Bungoma, Kakamega, Vihiga, Busia, Kitui, Makueni and Taita Taveta.
Faulu Bank disclosed hopes that the program would grow its customer base particularly in rural counties.
The lender, however, is yet to announce interest rates for the credit facility and other details including maximum loan amounts.