How to Apply for Kenyan Government Low-Interest Loans for Farmers

Looking for affordable financing options for your agricultural ventures? Learn everything you need to know about low-interest loans for Kenyan farmers and take advantage of the benefits.

Aug 3, 2023 - 21:39
Aug 3, 2023 - 21:40
How to Apply for Kenyan Government Low-Interest Loans for Farmers
How to Apply for Kenyan Government Low-Interest Loans for Farmers

With an agricultural sector contributing 26% to Kenya's GDP and employing 40% of the population, the nation's farmers are the backbone of its economy. Recognizing their vital role, the Kenyan government is committed to bolstering agricultural productivity through accessible and affordable financing. This article offers a step-by-step guide to applying for the Kenyan government's low-interest loans for farmers, including everything you need to know to benefit from these opportunities.

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A Financial Boost for Farmers 

This newly introduced loan scheme collaborates with the Warehouse Receipt System Council (WRSC) and the Agriculture Finance Corporation (AFC). These loans align with the Hustler Fund model, where farmers can avail themselves of loans at single-digit interest rates of below 10 percent. This initiative is expected to reduce production costs and significantly enhance agricultural productivity.

This initiative is not a standalone effort. The government has also pledged to increase AFC's budget from Sh2 billion to Sh10 billion. This boost in budgetary allocation is a clear indicator of the government's commitment to offering affordable credit to farmers.

A Breakdown of AFC Loans 

The AFC offers a diverse range of eight loans to farmers, catering to various agricultural sectors. The loan categories include Machinery, Agribusiness, Livestock and Fisheries Development, Cash Crop loans, Horticulture and Floriculture Development loans, Water Development Loans, Seasonal Crop Credit, and School-Based Loans. Farmers interested in these loans can find all the necessary details on the official website,

Applying for Low-Interest Loans: The How-To

Farmers interested in applying for these loans have two main options: the WRSC and the AFC. WRSC loans are obtainable through the National Cereals and Produce Board, where farmers can use crops they have stored as collateral. Farmers must submit their applications in either written form or as hard copies, or they can submit a soft copy to [email protected].

With the implementation of this scheme, the government estimates over 3.5 million farmers, mostly small-scale, will benefit. This transformational move will undoubtedly create a positive ripple effect across the nation.

Expanding Horizons: Loans for Women in Business 

In an equally empowering move, the government, in collaboration with Global Canada Affairs (GCA), has made available a Ksh1 billion loan kitty to women in business. This initiative targets businesswomen in 11 counties, including Kwale, Mombasa, Kilifi, Tana River, Lamu, Taita Taveta, Migori, Siaya, Kisumu, Homabay, and Busia.

The funds will be utilized to purchase fishing gear and expand businesses, among other investment areas. This initiative will undoubtedly accelerate the growth of women-led enterprises in the country.

A Vision of Empowerment 

Introducing these low-interest loans aligns with the government's vision to empower farmers, businesswomen, and small-scale entrepreneurs. This goal embodies the idea of inclusive growth, where every citizen has an equal opportunity to contribute to and benefit from the nation's economic growth.

Implementing these financial schemes paves the way for a bright and prosperous future for Kenyan farmers and women entrepreneurs, fostering a culture of financial independence and economic resilience.

READ ALSO: Tomato Farming in Kenya: A Guide to a Thriving Agribusiness

In Conclusion

These low-interest loans testify to the government's dedication to uplifting farmers and women entrepreneurs in Kenya. They serve as a financial safety net and a catalyst for positive change in the agricultural and business sectors. Kenya's government sets the stage for a dynamic, inclusive, and prosperous future by bridging the gap between agriculture and finance.


1. What is the goal of the low-interest loans for farmers in Kenya?

The main goal is to help low-income farmers increase their agricultural production by providing affordable financial aid.

2. How can farmers apply for these loans?

Farmers can apply through the Warehouse Receipt System Council (WRSC) and Agriculture Finance Corporation (AFC). Applications can be sent in written form or submitted as a soft copy to [email protected].

3. Are there specific loans for women in business?

Yes, a Ksh1 billion loan program, facilitated by the government in collaboration with Global Canada Affairs (GCA), has been established specifically for women in business.

4. What kind of loans does the Agriculture Finance Corporation offer?

The AFC provides eight categories of loans: Machinery, Agribusiness, Livestock and Fisheries Development, Cash Crop loans, Horticulture and Floriculture Development loans, Water Development Loans, Seasonal Crop Credit, and School-Based Loans.

5. What collateral is required for the Warehouse Receipt System Council loans?

Farmers can use their stored crops as collateral to access the WRSC loans.

6. Who benefits from these loan schemes?

The low-interest loans are designed to benefit over 3.5 million farmers across Kenya, primarily small-scale farmers. The Women in Business loans target businesswomen in 11 selected counties.

Disclaimer: The information provided in this article is for informational purposes only. Doing your own research or seeking professional advice before making any financial decisions is essential. Contact AFC at +254-020-3317199/3272000 or email at [email protected] for more information on loan products.

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