By Kimuri Mwangi
Agricultural sector stakeholders have today kicked-off a two -day conference to discuss financing the sector and appropriate models for funding agricultural activities in Kenya. This is amidst the fears of the large discrepancy between the GDP contribution from agriculture to that of loans and investments portfolios being re-invested into the industry, which in turn threatens Kenya’s food security.
Despite being the single largest contributor to Kenya’s GDP and employs more than 40% of the total population and 70% of the rural Kenya population, the sector is the least funded of the economy whose gross loans account for only 3.6% of total lending, and with a funding gap standing at sh.2.94Trillion.
Organized by Rootooba in collaboration with the Ministry of Agriculture and allied development partners, FINAS 2024 conference aims to take stock of the country’s ongoing financing options for the agricultural sector, including bottlenecks, propose ways of accurately determining the level of agricultural financing , in order to inform effective policies and provide a one-stop shop where small, medium, and large agricultural enterprises can interact with financing solution providers.
“ This conference will serve as a platform for robust discussions on innovative financing mechanisms, technological advancements, and policy frameworks aimed at bolstering sustainable agricultural practices. With Kenya’s agricultural sector playing a pivotal role in the country’s economy and livelihoods of millions, it is imperative to explore avenues for sustainable growth while addressing challenges such as climate change, food security, and economic resilience and ready the agricultural sector for business” said Dr. Kawira Mutegi, the FINAS 2024 conference director in her welcoming remarks.
In his opening remarks Agriculture and Livestock Development Cabinet Secretary Mithika Linturi said that “the outcomes of the FINAS 2024 conference are expected to be a validated resource for government and private sector to enable the designing and planning for resourcing initiatives in the agricultural sector”.
In his opening keynote address, the Prime Cabinet Secretary and CS for Foreign and Diaspora Affairs Musalia Mudavadi who was the Chief Guest said that Kenya is now ready for a remodelled financing mechanism that promises better days for the Agricultural sector.
“Our country’s fourth medium-term plan for 2023-2028 which was officially launched last week by President William Ruto outlines the key policies, programmes and projects that the government plans to implement to support the growth and transformation of this important sector of our economy. Among the plan’s priority projects is the Agricultural and rural financial inclusion project, which aims to enhance the access, efficiency and stability of agriculture and rural finance. I assure you that the Kenyan government will support the creation of any framework that will not only benefit this contribute to this important sector of the economy but is also geared to benefit Kenyans at the bottom of the pyramid,” opined Mudavadi
Partners such as GIZ, FSD-Kenya, African Fertilizer and Agribusiness Partnership (AFAP), FSD-K, AGRA, National Research Fund (NRF), International Food Policy Research Institute (IFPRI), Tegemeo Institute, Association of Fintechs in Kenya (AFIK), AGRA, Association of Microfinance Institutions of Kenya (AMFI), Fertilizer Association of Kenya (FAK), Apollo Agriculture, Kenya Union of Savings and Credit Co-operatives (KUSCO), and SNBX Capital, are also participating in the conference.
