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Agribusiness financier targets smallholder farmers with 3 billion shillings loan


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Agribusiness financier targets smallholder farmers with 3 billion shillings loan


A trader counting money. PHOTO FILE | NMG

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Summary

  • MESPT will provide a loan of 3 billion shillings to more than 50,000 small farmers to strengthen food production and create more jobs in the agricultural sector.
  • MESPT has partnered with donors such as the Danish government and the European Union to help farmers access funds for their farming activities.

Micro Enterprises Support Program Trust (MESPT) will provide a loan of 3 billion shillings to more than 50,000 small farmers to boost food production and create more jobs in the agricultural sector.

MESPT has partnered with donors such as the Danish government and the European Union to help farmers access funds for their farming activities.

Ms Rebecca Amukhoye, Director General of MESPT, said that the institution is implementing a development model that aims to improve the development of agricultural enterprises, agricultural productivity and food security by increasing financial access and inclusion of farmers.

The agency undertakes different projects in a number of counties, for example in Taita Taveta, MESPT supports banana growers while on the coast it provides technical and financial support to coconut growers.

“These funds are intended to help farmers improve their farming activities through financial support aimed at boosting food production in the country,” Ms. Amukhoye said.

The institution is extending the loan to farmers at an interest rate of 13%, with Ms. Amukhoye saying demand has been high from farmers.

The program is designed to operate over the next five years and aims to help farmers meet the challenges they face in their day-to-day businesses.

Many farmers have had difficulty with farming due to difficulties in accessing finance, as most banks are reluctant to lend to farmers due to the high risks involved.

MESPT, through its Agriculture Finance Initiative (AgriFi), aims to increase agricultural yields, open sustainable supply chains for farmers and improve food security in line with Kenya’s Big Four program and to the Vision 2030 master plan.


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