Wanjiru Macharia
12 August 2008
Nairobi — Equity Bank yesterday launched a credit facility for grain farmers to help them in purchasing farm inputs.The facility will benefit both large and small scale grain farmers with the aim of reducing poverty for small farmers and helping them move from subsistence farming to commercial agriculture.
The initiative is dubbed "Kilimo Biashara" and is a joint venture involving Equity Bank, the Ministry of Agriculture, the International Fund for Agricultural Development and the Alliance for a Green Revolution in Africa.It was launched at a Nakuru hotel at a function attended by all agriculture officers from Rift Valley Province.The bank's Marketing and Product Development director Henry Karugu said the partners chose to launch the product in the Rift Valley since it was Kenya's bread basket.He said the credit facility will also be launched in Nyanza, Eastern, Central, Coast and North Eastern provinces respectively.
Good for grain farming
Mr Karugu said the new products were specially designed for grain farmers producing wheat, maize and rice.
"In the past, small scale farmers were sidelined by most financial institutions including the ones formulated for agriculture, but from now on, they can access credit through this facility," he said.The banker, who was accompanied by the Rift Valley Provincial Director of Agriculture, Leonard Ochieng and other senior agriculture officers in the region, said availability of credit to farmers would also improve the country's food security.
"We will try to ensure that each farming family increases its production, has enough for its own use and a surplus to sell to the local market," he said.Mr Karugu, however, said the cash would not be given directly to the farmers but will be channelled through stockists from where the growers will collect seeds, fertilisers or chemicals.
He said this was to ensure that the money was used for the intended purpose.The maximum amount of money to be give to small scale farmers will be Sh100,000 with a minimum of Sh1,000 while large scale farmers would be able to borrow over Sh100,000.Mr Karugu said the bank was still lending money to other farmers but not through the new facility.
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