Kenyan farmers are increasingly turning to friends and relatives for loans, leading to a reduction in formal credit uptake from financial institutions, according to a new report by the Central Bank of Kenya (CBK).

• 25 percent of farmers sourced loans from relatives and friends in November, up from 6 percent in September.
• The CBK Market Perceptions Report on agriculture highlights a rise in digital loan usage, with 23 percent of farmers utilizing digital credit in November.
• The shift is attributed to high borrowing costs, with many lenders charging interest rates above 10 percent, making formal credit less attractive.
• The CBK recently cut the Central Bank Rate (CBR) by 25 basis points to 9 percent to stimulate lending and economic activity.