Kenya Charts Bold Path Toward Sustainable Agri-Food Financing at FINAS 2025 Summit

Kenya’s agriculture sector took centre stage at the 2025 Summit on Financing Agri-Food Systems Sustainably (FINAS), as the government outlined bold reforms aimed at transforming agricultural financing, enhancing productivity, and fostering inclusive growth.

Speaking at the summit, the Cabinet Secretary for Agriculture underscored a renewed commitment to placing the Kenyan farmer at the heart of economic development.

“Our mission is simple put more money in the farmer’s pocket,” the CS declared, emphasizing that agricultural prosperity is the foundation for national food security, sovereignty, and economic resilience. “It all starts and ends with the farmer.”

The Ministry of Agriculture has announced several strategic initiatives inorder to achieve this which includes a push to raise budgetary allocation to agriculture from the current 3 percent to 10 percent, aligning with both the Malabo Declaration of 2014 and the Kampala Declaration of January 2025.

Despite agriculture contributing nearly 50 percent to Kenya’s GDP 22.5 percent directly and up to 30 percent through linkages, funding remains disproportionately low. “This investment is not just overdue it is imperative,” the CS stressed.

A key step in ensuring efficient use of resources is the formation of a Project Implementation Monitoring Unit (PIMU). The independent body will monitor agricultural projects at the grassroots level, report monthly, and promote transparency and value-for-money principles.

Financing reform also a major pillar of the address,the CS lamented that only 3 percent of commercial bank loans were directed to agriculture in 2023. Citing structural barriers like high perceived risk and lack of collateral, the CS challenged financial institutions to innovate and tailor credit to the realities of farming.

“We must stop tying farmers into short-term, high-interest facilities. Let’s reintroduce the rule that mandates a fixed percentage of institutional lending to agriculture,” the CS urged.

Further, the ministry is pushing for the establishment of a dedicated Agricultural Finance Fund, mirroring successful models like the Constituencies Development Fund. The Agricultural Finance Corporation (AFC), which currently meets 25 percent of the sector’s capital needs, will be recapitalized and merged with the Commodities Fund to improve scale and impact.

In partnership with the private sector, the government is modernizing agriculture through the Kenya Integrated Agriculture Management Information System (KIAMIS). Over 6.4 million farmers have been digitally registered, enabling geo-tagging, credit scoring and targeted subsidy delivery.

Complementing this digital transformation is a new big data centre at KALRO, which will inform policy decisions and promote market access.

The revamped Agricultural Information Resource Centre (AIRC) will serve as an innovation hub, supporting AgTech startups offering services like weather-based insurance and digital loans. This aligns with Kenya’s Digital Agriculture Roadmap (DAR), which seeks to foster data interoperability and attract investment.

Kenya is also piloting blended finance models, such as the Kenya Cereal Enhancement Program (KCEP-CRAL), where public funds crowd in private investment to support smallholder farmers.

The CS called for a united front: “No single actor can do it alone. Let us build a resilient, productive, and prosperous agri-food system,”.

By Sharon Atieno