10 March, 2012

Ministry of Agriculture Agricultural Credit Guarantee Scheme

MINISTRY OF AGRICULTURE

NATIONAL ACCELERATED AGRICULTURAL INPUTS ACCESS PROGRAM (NAAIAP)

AGRICULTURAL CREDIT GUARANTEE SCHEME

Farmers Empowerment towards a Globally Competitive Agriculture

The Government of Kenya, with the assistance of the European Union through the World Bank, has entered into contracts with local financial institutions to leverage the institutions’ resources, thereby encouraging them to avail affordable loans to eligible borrowers to purchase farm inputs and finance other value chain activities.

The scheme will also support other financial services, capacity building and marketing.

Target borrowers: small scale farmers, agro dealers, other agricultural value chain players

Financial institutions/partners: Equity Bank Ltd., Family Bank of Kenya Ltd., Kenya Women Finance Trust and The Cooperative Bank of Kenya Ltd.

Enterprises to be financed: Grains and horticulture

Interest rates: 12% per annum

Source of lending funds: The Government of Kenya has agreed to deposit funds in these financial institutions to the tune of Kshs 500 million. The amount deposited is for leveraging Ksh.5.0 billion to be availed to eligible borrowers by the institutions from within their own
resources.

The Government of Kenya fund is not for lending but will be applied as a risk sharing facility (up to 10% of any proven losses) with the financial institutions. The financial institutions are
expected to apply their lending policies and procedures.

Security: flexible and includes group guarantee, household goods, chattels, tangible security among others

When to access: apply now for 2012 long rains season

Where: at the 4 partner financial institutions’ branches i.e. Equity Bank Ltd., Family Bank of Kenya Ltd., Kenya Women Finance Trust and The Cooperative Bank of Kenya Ltd.

CAUTION:Borrowers must repay back disbursed loans

For more information contact:

1. Your area District Agricultural Officer

2. The 4 financial institutions

3. NAAIAP Secretariat – Nairobi.

Tel: 020 215704 Ext 1158, 020 2400527

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