Family Bank joins forces with USAID to hand out $4.7mn to agribusinesses
Kenyan Financial institution Family Bank and the United States Agency for International Development(USAID), have joined forces to hand out $4.7mn to agri-businesses in seventeen counties in Kenya in the next year.
The partnership deal between the lender and the United States Agency for International Development (USAID) seeks to unlock US$374 million to Small and Medium Enterprises (SMEs) in Kenya and East Africa.
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The partnership will see Family Bank finance agri-businesses in the selected 17 Counties in the East Africa nation.
Through an initiative dubbed ‘Pay for Results’, the bank targets financing across dairy, horticulture, livestock and energy for agriculture value chains.
The Counties targeted include Homa Bay, Migori, Kisii, Kisumu, Siaya, Kakamega, Bungoma, Busia, Vihiga, Kitui, Makueni, Taita Taveta, Isiolo, Marsabit, Turkana, Garissa and Wajir.
“The agri-business sector faces challenges accessing affordable credit and technical support. Through this partnership, we will provide affordable credit and capacity building to our SME customers to nurture sustainable agri-businesses,” said Family Bank Chief Executive Officer Rebecca Mbithi.
“The agri-business sector faces challenges accessing affordable credit and technical support. Through this partnership, we will provide affordable credit and capacity building to our SME customers to nurture sustainable agri-businesses”
Rebecca Mbithi – CEO, Family Bank stated
She added that such private partnerships are essential, especially in the wake of the Covid-19 constraints on the Kenyan agricultural market, to ensure timely and continued operation of the food supply chain.
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The head of USAID’s Kenya Investment Mechanism, Roger Bird said the organization is constantly seeking partnerships with organizations eager to finance agribusiness.
The USAID-Family Bank partnership will enable creating new financing products that better fit the cash collection cycle of agribusinesses in the selected counties.
Family Bank has a similar deal with Performeter Agribusiness and Ndumberi Dairy Farmers Co-operative Society in Kenya set to double dairy farmers milk production to 30,000 litres per day through a fodder financing agreement.
Kenya Investment Mechanism is a USAID program that unlocks capital for SMEs and smallholder farmers in Kenya and East Africa in partnership with banks and other financing organizations.
This program by Palladium, a global firm, links with several organizations to formulate strategies and implement solutions that benefit farmers.
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