AFC rolls out collateral-free lending for farmers
Among the key innovations is the Warehouse Receipt System, implemented in partnership with the Nairobi Commodities Exchange (COMEX), which allows farmers to use warehouse receipts as collateral after storing their produce in accredited warehouses...
✨ Key Highlights
The Agricultural Finance Corporation (AFC) is introducing collateral-free lending to enhance financial inclusion for Kenyan farmers, aiming to boost the agricultural sector.
- AFC has developed innovative financing models, including the Warehouse Receipt System, allowing farmers to use stored produce as collateral.
- The initiative is spearheaded by AFC Managing Director George Kubai and Chief Credit Officer Christopher Kiburu.
- AFC also offers technical advisory services and trains farmers on financial literacy and good agricultural practices, supporting youth, women, and climate-resilient agriculture through programmes like Enable Youth and RK FINFA.
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Standard Chartered Mobilizes Sh97bn for Sustainable Finance in Kenya - July 2026
Standard Chartered Bank Kenya has significantly mobilized over Sh97 billion in sustainable finance since 2021, channeling these funds into crucial sectors like renewable energy and affordable housing. The Agricultural Finance Corporation is introducing collateral-free lending to enhance financial inclusion for Kenyan farmers, aiming to boost the agricultural sector. Kenyan businesses face a significant hurdle in accessing affordable finance, with a substantial financing gap hindering their growth and the country's economic development. Separately, Kenyan entrepreneurs and businesses are increasingly turning to alternative finance options beyond traditional banks to secure capital for growth, addressing this significant financing gap.
