Agriculture is the backbone of Kenya. Although not a lot of land is under agriculture, Kenya is still the leading producer of tea and coffee, as well as the third-leading exporter of fresh produce, such as cabbages, onions, and mangoes.
Agriculture is key to Kenya’s economy, contributing 26 percent of the Gross Domestic Product (GDP) and another 27 percent of GDP indirectly through linkages with other sectors.
The sector employs more than 40 percent of the total population and more than 70 percent of Kenya’s rural people. Agriculture in Kenya is large and complex, with a multitude of public, parastatal, non-governmental, and private sectors.
Farming in cotton used to be vibrant but has since gone down. Efforts are in place to revive the cotton sector with the government leading the way on calling on Kenyans to support the local textile industry.
Co-operative Bank has been very thoughtful to the Agricultural Sector by having considerate loans to grow Agribusinesses in Kenya since the Covid-19 pandemic. Some of the financing options available include the following.
Horticulture & Floriculture Loan
This solution supports fruits, vegetables, and flower value chain players by financing working capital and farm development.
It enables the farmers to purchase land, develop the land by installing infrastructure for irrigation, greenhouses, solar energy, etc. This specific loan also gives farmers the capacity to buy assets that enhance production such as refrigerators/ cold rooms.
Requirements:
Duly completed loan application form
Have an account with a Co-op bank (new or existing)
12 month Bank Statement
Audited books of account for last 3 years and management account where applicable
Cash flow projection
Minimum Financing: Ksh 100,000
Maximum Financing: Dependent on repayment ability
Cotton Loan
This finance service is for the various cotton value chain players such as cotton farmers, ginneries, and textile millers and ranges from farm development finance to working capital and CAPEX.
Requirements:
3- year historical production records
1- year yield production projection
Audited Books of accounts for the last 3 years
Borrowing powers (for Co-operative societies only)
12-month Bank Statement
Cash-flow projections
Resolution to borrow for C0-operative societies & companies.
Minimum Financing: Ksh 50,000
Maximum Financing: Dependent on society’s repayment ability.
Visit any Co-op Bank branch today.