Family bank has partnered with Performeter Agribusiness, a dairy farming investment advisory firm to provide agricultural credit of KSh1 billion loans to finance fodder production.
The credit facility targets over 100,000 farmers in dairy cooperatives with the intention of land preparation, planting, weed control, harvesting, ensiling and baling.
“This is why Family Bank in partnership with Performeter, an experienced player in the dairy sector, has set aside Ksh1 billion as financing to enable farmers to access working capital and other financial services to support the dairy value chain and unlock its growth potential to the entrepreneurial dairy farmers,” said Family Bank Chief Executive Officer Rebecca Mbithi.
In addition to working capital financing to farmers, Family Bank will also finance enterprises involved in bulk procurement of dairy farming inputs and equipment. The capital expenditure includes expansion of the cold chain, set up of farm infrastructure, upgrading of milk processing facilities, and renewable energy at the milk processing plants, among others. The Bank will also provide working capital for milk processors to finance the purchase, processing and storage of shelf-stable milk products such as milk powder during the flash season for sale during the dry season.
“By working with dairy cooperatives, we believe that we can be able to target many small-scale entrepreneurs who contribute over 75 percent of Kenya’s total production and have an exponential growth effect of the sector in line with the President’s Big Four Agenda on food security,” she added.