Faulu Microfinance bank has today announced a series of new measures aimed at financing farmers to acquire farm inputs for both livestock and crop farming as part of its product rationalization exercise.
The move is further aimed at enhancing food security amidst the ongoing drought that has affected over half of the 47 counties by ensuring that Kenyans get access to quality and nutritious food that is fundamental to human existence.
Among the new measures, the bank seeks to offer flexible and affordable agribusiness loans repayable in bullets or through moratoriums to farmers. This will align with various seasons of livestock and crop farming.
In addition, the Bank has announced partnerships with the Agrovet shops branded as Faulu Kilimo Centers where farmers will be financed by the bank to ensure they access quality inputs and minimize the diversion of loan funds to other competing needs.
Speaking while making the announcement, Faulu Microfinance Bank Managing Director Apollo Njoroge said, “For the Kenyan economy to function optimally the country should experience food security. This is because, having secure access to food can produce wide-ranging positive impacts, including economic growth, job creation, and poverty reduction. To realize this, we as a bank seek to enhance agriculture-led economic growth, improve nutrition outcomes, strengthen county government capacity, increase resilience, and build sustainable market systems by supporting farmers to access affordable and flexible financing and insurance solutions”.
Besides crop farmers, livestock farmers seeking to acquire livestock will approach the bank and acquire loans targeted to finance the purchase of livestock, animal feeds, and the construction of animal structures. The Bank is also keen on offering insurance solutions for crops and livestock.
According to recent data from the Food and Agriculture Organisation- FAO of the United Nations, Kenya’s agricultural sector contributes approximately 33 percent of the country’s Gross Domestic Product (GDP).
In addition, the sector employs more than 40per cent of the total population and 70per cent of the rural population. However, agricultural productivity has stagnated in recent years as smallholder farmers and agricultural enterprises continue to face challenges growing their businesses and improving the quality of agricultural goods.
Moving into 2023, Faulu seeks to become her customer’s most trusted lifetime partner, passionate about helping them achieve their financial goals. This is even as it delivers by having a strong proposition on meeting their financial needs.