Kenya is undertaking a fundamental restructuring of how it channels finance to the agricultural sector, moving away from direct lending to individual farmers toward a partnership-driven model designed to rebuild the financial infrastructure serving the industry.
The Micro Enterprises Support Programme Trust (MESPT) released its 2026–2030 Strategic Plan this week, outlining a Sh7.2 billion mobilization effort targeting smallholder farmers and agri-businesses through an expanded network of financial intermediaries. The approach marks a deliberate departure from conventional development models that have historically focused on extending credit directly to producers.
Under the new framework, MESPT will position itself as a catalyst within the broader financial ecosystem, partnering with 100 financial institutions—including savings and credit cooperative organizations (SACCOs), microfinance institutions, and commercial banks—to scale agricultural lending across the country.
"By partnering with last-mile institutions and mobilizing blended capital, we seek to transform structural barriers into pathways for growth," said Henry Rithaa, Chief Executive Officer of Micro and Small Enterprises.
The strategic plan projects that the system-wide approach will drive more than Sh7.2 billion in inclusive finance, generate 100,000 jobs and income opportunities, and integrate climate resilience measures across agricultural communities.
The initiative addresses a long-standing mismatch in Kenya's financial landscape. Despite the country's recognition as a global leader in financial inclusion—with 84.8 percent of adults accessing formal financial services—the composition of that access skews heavily toward mobile money platforms and short-term digital loans. These instruments are poorly suited to agricultural cycles, which require patient, long-term capital investments in seeds, equipment, land improvements, and operating expenses that span multiple seasons.
Most available credit currently flowing to the sector remains short-term and consumption-oriented, a structural constraint that has limited productivity growth and investment in climate-smart farming practices. The MESPT strategy aims to bridge this gap by leveraging existing financial infrastructure rather than duplicating it.