Network to increase credit to agriculture

Agriculture is set for increased funding, following the establishment of a network by the East African Community.

The East Africa Agriculture Finance Network will constitute banks, insurance firms, co-operatives, venture capitalists, private equity funds and investors, government representatives and regulators, regional economic communities and small-and-medium enterprises. The network is sponsored by Usaid.

Speaking during its launch at the Kenya School of Monetary Studies in Nairobi, Agriculture minister Sally Kosgei, said farmers face bureaucratic hurdles when seeking credit.

“The low lending to farmers shows either that banks do not understand farming or fail to appreciate that agriculture can be a business,” she said.

Many bank officials had little knowledge on agriculture and could, therefore, not make decisions fast enough on funding projects, she said.

Agriculture only gets 30 per cent of its credit requirements — Sh40 billion against needs of Sh130 billion.

East Africa Community secretary-general Richard Sezibera, said member states were formulating laws in the common agriculture policy.

He said Kenya had 27 Bills awaiting enactment and that policy weaknesses in government and private sector had neglected agriculture.

He said non-tariff barriers continued to hurt trading between the states.

Mr Sezibera said fears that Kenya would dominate trade in the region were without foundation.