Banks turn to lending to farmers after rate cuts
Agricultural loans increased to Sh190.2bn as cheaper credit encouraged banks to fund farming value chains...
✨ Key Highlights
Kenyan banks are significantly increasing lending to the agriculture sector, with loans rising by 23.5% to Sh190.2 billion in the year to April 2026. This surge is attributed to falling interest rates, which have revived private sector borrowing and signaled renewed confidence in agriculture.
- Outstanding loans to agriculture rose by 23.5% to Sh190.2 billion.
- The Central Bank of Kenya (CBK) data shows this growth coincides with a decrease in the weighted average lending rate to 14.64%.
- Equity Group is a notable lender, aiming to increase agriculture's share in its loan portfolio to 30% by 2030, focusing on value chain financing.
Continue Reading
Read the complete article from Nation Business
Part of the Day's Coverage
Treasury Reverses 2026 Economic Growth From 5.3pc to 5pc - July 2026
The National Treasury of Kenya has revised its economic growth forecast for 2026 downwards from 5.3% to 5%, citing global uncertainties. At the same time, the National Treasury will begin nationwide public hearings in August on proposed cuts to Pay As You Earn (PAYE) tax, with the Cabinet Secretary assuring workers that tax relief is still planned. Meanwhile, Kenyan banks are significantly increasing lending to the agriculture sector, with loans rising by 23.5% to Sh190.2 billion in the year to April 2026, attributed to falling interest rates which have revived private sector borrowing and signaled renewed confidence in agriculture.
