A major challenge still remains in flexible loans and access to agricultural credit for smallholder farmers in Kenya. Flexibility of loans and grants offered to farmers is low. For a smallholder seeking a loan or funding from a bank, rate is too high and their terms unfavorable. Against this backdrop, Kisumu Governor Prof. Anyang’ Nyong’o has issued cheques worth Kshs 65.6 m to smallholder farmers spearheading the Kenya Climate Smart Agricultural Project.
The World Bank initiative aims to increase agricultural productivity and enhance resilience and copying mechanisms to climate change risks in the targeted smallholder farming and pastoral communities. So far, 191 farmers are reported to have benefited from the program.
Kisumu is among the 24 Counties implementing the project which seeks to strengthen food value chains while helping to mitigate against Climate Change. The period until 2022, KCSAP is set to upscale climate smart agricultural practices, strengthen and support research and innovation and aid in building competitive and sustainable seed systems in the region.
With the financing received, farmers have acquired water pumps, fertilizers and pesticides to boost yields. Many continue to struggle to raise capital to buy farm inputs, feeds, find markets for their produce and maintain a steady cash flow.
The absence of customized loan products for farmers, traditional bank screening models that tend to exclude smallholders and the perception of the sector as high-risk by financial institutions.
KCSAP Project Beneficiaries
The project will benefit about 522,000 households of smallholder farmers, agro-pastoralists, and pastoralists directly, 340,000 households benefiting from the county-level and public-private partnership investments and over 600 micro-small-and-medium enterprises.
The Ministry of Agriculture Livestock Fisheries and Cooperatives is the main implementing Agency at the national level with the project anchored in the State Department of Agriculture. County governments are the executing agencies at the county level.