Barclays to peg farmers loans on harvest cycles

Barclays Bank has launched a new plan to boost agribusiness in Kenya. Under the initiative, Agribusiness Unit, farmers will get affordable credit and an opportunity to sharpen their skills.

The bank said the plan was motivated by the fact that many small-scale farmers grapple with the challenges of inadequate finances and the lack of skills. This hampers efforts to attain food security.

The lender’s business banking director, Mr Humphrey Muturi, said the unit will provide farmers with “innovative financing” whose repayment mode will take into account crop or animal production cycle.

“For example, if one is a barley farmer, one will be expected to make their repayment when they harvest and sell their crop. This could be, for example, every three months,” Mr Muturi said.

The plan will also link farmers to agronomists from all over the globe, who will provide them with expert advice on how to increase their yields.

DEDICATED EXPERTS

“We have a dedicated team of about 10 experts, who will assist the interested farmers, who have specific concerns in floriculture, dairy, tea, coffee as well as on maize and wheat farming,” he said.

The credit, Mr Muturi says, will be extended at competitive rates.

Farmers would also get an opportunity to visit countries such as Israel, South Africa, among others, which have made great strides in agribusiness.

One such trip was made last month where Barclays Bank took nearly 100 farmers and business people to Israel for a 10-day visit to farms. They also attended an agriculture conference.

During the trip, the farmers and business people were exposed to agribusiness best practices besides getting a chance for partnership with Israeli firms.

Businessman Amos Muiruri, who deals with farm products, was among those who went on the trip to Israel. He said the tour was an eye-opener and praised Barclays for the initiative. 

“When you come out here, you realise the many mistakes some of us make in our farms. These are vital lessons,” Mr Muiruri said.

“I got contacts of companies who we share similar interests.”

Kenya’s ambassador to Israel General Augustino Njoroge commended the plan and urged banks to arrange more of such visits.

“When we see Kenyans eager to learn from the Israelis, it encourages our efforts to continue providing partnerships between the two countries. Learn all you can and when you go back home, let us see the new changes,” he spoke in Tel Aviv when he hosted the visiting Kenyan delegation.

Agriculture contributes more than 30 per cent of Kenya’s GDP, yet to date, Kenya is still not food secure primarily because of the use of traditional farming technologies.