Co-op Bank, CARE Kenya Launch USD 7.5 Million (KES 975 Million) Fund to Finance 21 Women Farmer Groups in Homa Bay

Co-op Bank Kenya and CARE International Kenya have signed a Memorandum of Understanding (MOU) formalising a strategic partnership expected to unlock USD 7.5 million (approximately KES 975 million) in financing for women farmer groups. The signing took place in Kisumu, marking the start of a collaboration designed to strengthen agricultural value chains and deepen financial inclusion for smallholder farmers.

The partnership introduces a de-risking guarantee fund that eases collateral requirements for women farmer groups, removing one of the most persistent barriers to formal credit for smallholder agriculture.

The first phase of the programme will be implemented in Homa Bay County, supporting 21 women farmer groups, each comprising an average of 20 members, alongside an agricultural cooperative that will coordinate and provide support to participating groups.

“Co-op Bank has built its identity around the cooperative movement, and this partnership is a natural extension of that heritage,” said David Akumi, Head of Business Banking at Co-op Bank Kenya. “The guarantee fund allows us to lend with confidence to women farmer groups who have historically been locked out by collateral requirements. We expect this model to demonstrate strong repayment performance and to inform how we scale similar facilities across other counties.”

The signing builds on Co-op Bank’s longstanding role as a lender to Kenya’s agricultural and cooperative sectors, and on CARE International Kenya’s track record of programming focused on women’s economic empowerment across the region.

On her part, Getrude Misango, Country Director, CARE International Kenya said, “Access to affordable credit remains one of the biggest constraints facing women farmers in Kenya, despite their central role in agricultural production. This partnership with Co-op Bank addresses that constraint directly, giving women farmer groups in Homa Bay County the financial backing they need to grow their enterprises and strengthen their households. We look forward to seeing the impact of this first phase and to expanding it further.”

The initiative is expected to significantly improve access to credit for participating farmer groups, enhance agricultural productivity across Homa Bay County, and strengthen the coordination role played by the agricultural cooperative supporting the groups. By easing collateral requirements, the guarantee fund is designed to bring previously excluded women farmers into the formal financial system, with knock-on benefits for household income and local economic activity.

The programme is also expected to support more sustainable agricultural practices among participating groups, as improved access to financing allows farmers to invest in inputs, equipment and techniques that strengthen resilience to climate and market shocks.

Co-op Bank and CARE International Kenya indicated that lessons from the Homa Bay County phase will inform future expansion of the guarantee fund to additional counties and farmer groups, as part of a broader push to widen access to agricultural finance across Kenya.

The partnership reaffirms Co-op Bank’s commitment to inclusive financing solutions and sustainable rural economic development, continuing its long-standing focus on the cooperative movement and agricultural lending as core pillars of its business.

The MOU signing was attended by the CARE International Kenya Board, led by Chairperson Lucy Nguru, alongside Regional Director for East and Southern Africa Walter Mwasaa, Country Director Getrude Misango, and other board members. Co-op Bank was represented by Head of Business Banking David Akumi, Head of Group Banking Dickson Agesa, Western Regional Manager Paul Cianda, and the Homa Bay Branch Manager. Also in attendance was Chief Officer for Trade, Investment, Industrialisation and Tourism, Eng. Bernard Ouru Nyobange, representing the Governor of Homa Bay County.

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