Family Bank has announced that it will extend its Ksh. 6 billion credit to 17 counties in Kenya for the next year. The funding is powered by USAID’s Pay for Performance initiative under the Kenya Investment Mechanism (KIM) program. The initiative targets businesses across agricultural value chains including dairy, horticulture, livestock and energy.
The first stage of the initiative will target businesses in Homa Bay, Migori, Kisii, Kisumu, Siaya, Kakamega, Bungoma, Busia, Vihiga, Kitui, Makueni, Taita Taveta, Isiolo, Marsabit, Turkana, Garissa and Wajir counties. KIM is a 5 year USAID project that is facilitating Ksh. 45 billion (USD 400 million) in investment for key sectors of Kenya’s economy including agriculture, and for regional trade and investment opportunities under the Prosper Africa initiative.
KIM uses smart incentives to mobilize finance for development in targeted sectors. This is including agriculture supported by Feed the Future, clean energy supported by Power Africa, health, water, and trade sectors.
The Ministry of Agriculture in Kenya has indicated that climate change over the years has worsened weather related risks such as droughts, floods, pests and diseases, exposing farmers to huge losses. Estimates from the ministry show that the economy lost Ksh. 1.33 trillion as a result of extreme drought between 2008 and 2011 with the livestock sub-sector accounting for 72% of this loss. The bank had earlier in the year through the same program extended Ksh. 500 million to support agribusinesses as part of USAID’s effort to unlock Ksh. 40 billion to SMEs in Kenya and East Africa.