Home Business KDC, AFC in Ksh 600M deal to support 21 ASAL counties

KDC, AFC in Ksh 600M deal to support 21 ASAL counties

0

The Kenya Development Corporation (KDC) has released Ksh 600 million to support livestock farmers and small enterprises in the agriculture sector in arid and semi arid counties.

The funds are expected to help Agriculture Finance Corporation (AFC) provide affordable credit to individuals and Micro, Small and Medium Enterprises in the livestock value chain in 21 counties.

Ksh 300 million has been allocated to the De-Risking, Inclusion, and Value Enhancement of Pastoral Economies (DRIVE) project and another Ksh 300 million to the Supporting Access to Finance and Enterprise Recovery (SAFER) project.

Speaking during the issuing of the cheque to AFC which is the implementing agency, Investment, Trade and Industry Cabinet Secretary Rebecca Miano said the projects lay grounds for sustainable development among pastoral communities and will foster economic resilience to qualifying groups especially youth and women.

“Through strategic investments in livestock value chains, entrepreneurship and infrastructure development, DRIVE will not only transform the economic landscape of Kenya’s pastoral dominions but also enhance the overall social fabric of our nation,” said Miano.

The DRIVE project which as been ongoing for more than a year has provided livestock insurance to more than 180,000 households.

The funds will support livestock value chains in areas such as the off take programmes, meat quality improvement and fodder production.

“We intend to scale this up further beyond the Ksh 600 million. This is just the first tranche and based on the absorption, we shall then be facilitating them with more funds so that they can support this space knowing very well that this is key for food security in our economy and equally to provide liquidity to the various MSMEs,” said Norah Ratemo, KDC Director General.

Targeted counties include Samburu, Tana River, Wajir, Garissa, Turkana, Marsabit, Isiolo, Kajiado, Mandera, Laikipia, Narok, Thataka Nithi, Lamu, Meru, Baringo, West Pokot, Makueni, Kitui, Taita Taveta, Kwale and Kilifi whose demand for agri-financing is estimated at more than Ksh 2 billion annually according to AFC.

SAFER on the other hands provides affordable loans to MSMEs to support their recovery especially after being hit by the COVID-19 pandemic.

“For every facility that we are giving as an institution, we have the criteria and the appraisal process that we use to make sure someone is qualified or not. The one that meet the set criteria is the one that we are going to process to the next level ” said George Kubai, Managing Director AFC.

AFC to provide innovative financial services to be channeled through private sector financial intermediaries.

Website | + posts