The biggest challenge faced by farmers and other Kenyans who want to invest in farming is the need for more capital at the beginning or when they need money for more development. Images of potatoes being harvested and chicks in a poultry farm used for illustration. Through the Agricultural Finance Corporation (AFC), the government of Kenya provides loans to interested individuals for the sole purpose of developing agriculture. What is AFC? The Agricultural Finance Corporation (AFC) is a wholly government-owned Development Finance Institution (DFI) in Kenya mandated to support agriculture and agricultural industries through loans and managerial and technical assistance. It is one of the primary government credit institutions tasked with providing financial support exclusively for agricultural development. Loan Products AFC has eight categories of loans, and details on how to apply for these loans are provided below. 1. Machinery loans This loan is for purchasing farm machinery to facilitate the production and transportation of farm produce and has a repayment period of 2-5 years. Apart from using the machinery, one can get extra revenues from their farm machinery by hiring out to those who don’t have it, for example, tractors. 2. Agribusiness loans These loans are specifically crafted to support agri-business traders by offering start-up capital for those initiating or already involved in agricultural microenterprises. 3. Livestock and Fisheries Development These are loans designed for investors in livestock and fisheries production. Some of the businesses financed under these loans include: Dairy and beef production Sheep and goat production Beekeeping Piggery and poultry production Working capital Fish production 4. Cash crop Loans The credit facility is available for the cash production of tea, coffee, sugarcane, pyrethrum, cashew nuts, citrus, mango trees, bananas, stevia, and other cash crops. 5. Horticulture and floriculture development loan These are loans to finance horticultural and floricultural projects financing investments in: Fruits, vegetables, and flowers Greenhouses and related equipment Water and electricity supply systems Harvesting and packaging equipment Labour and other operational costs Working capital 6. Water development loan These are loans intended for water infrastructure for irrigation and livestock use, and the loan is used to finance the following: Water tanks and troughs, shallow wells, boreholes Pumps, pipes, and connections Irrigation equipment, farm dams Labour, transportation related to installations 7. Seasonal crop loans These loans are intended for the production of maize, wheat, potatoes, rice, and other food crops with a maturity period of not more than 12 months. 8. School-based loans Loans are extended to primary, secondary, and tertiary institutions for school farming, aiming to subsidise the cost of school feeding and promote school self-sufficiency. How to apply The details on the application procedure and the eligibility criteria can be found on the AFC’s official website, specifically under the loans product tab. Mixed farming avocado trees to increase earnings Earlier, TUKO.co.ke reported that farmers are increasing their incomes by planting short-term crops between rows of avocado trees and how to market avocados for export. According to farmers growing avocados for export, you must ensure you get suitable avocado seedlings when starting the business. “When I was starting, I didn’t know what Hass seedlings looked like, so I joined a farmers group, and I got a lot of help there in terms of information and technical know-how,” said Maina, a farmer.
by Elijah Ntongai