The strategy marks a clear departure from traditional development models that focus on lending directly to farmers Micro and Small Enterprises CEO Henry Rithaa. /FILE Kenya plans to overhaul its agriculture financing, by shifting from financing farmers individually with the state instead working through 100 financial institutions to expand agricultural lending.
The strategy marks a clear departure from traditional development models that focus on lending directly to farmers. In its Micro Enterprises Support Programme Trust 2026–2030 Strategic Plan, the state will mobilise Sh7.2 billion for smallholder farmers and agri-businesses.
The plan is not anchored on direct lending, but on rebuilding the financial system that serves the sector. In the strategic plan, MESPT is positioning itself as a catalyst within the financial ecosystem, working through 100 financial institutions, including SACCOs, microfinance institutions and banks to expand agricultural lending at scale.
“By partnering with last-mile institutions and mobilising blended capital, we seek to transform structural barriers into pathways for growth," said Micro and Small Enterprises CEO Henry Rithaa. She said this will drive over Sh7.2 billion in inclusive finance, create 100,000 jobs and income opportunities and embed climate resilience across communities.
This system-wide approach is designed to tackle one of Kenya’s most persistent economic gaps. While the country is often seen as a global leader in financial inclusion, with 84.8 per cent of adults accessing formal financial services, much of that access is driven by mobile money and short-term digital loans that are poorly suited to agriculture.
The strategic plans points out that farming requires long-term, patient capital, yet most available credit is short-term and consumption-based.