KBA’s partnership with GIZ to improve financial access for agribusiness entrepreneurs

The Kenya Bankers Association (KBA) has formed a partnership with GIZ to improve farmers’ and agribusiness firms’ access to finance.

The partnership will help lenders grow capacity by assisting them in gaining deeper insights into specialized green technology funding, allowing them to produce tailored products.

Several e-learnings will be developed and deployed under KBA’s Sustainable Finance Initiative Online Learning Platform with support from the Water and Energy for Food (WE4F) program, the Digital Transformation Center, and the SDG Market Building Project, funded by the German Government and implemented by GIZ.

Habil Olaka, the CEO of KBA, called on banks to help agri-business firms, challenging small-scale farmers to build bankable businesses.

According to the Head of the Agriculture program at GIZ, agricultural finance is crucial for eradicating hunger and increasing wealth. The Sustainable Finance Initiative (SFI) is a fantastic forum for demonstrating the promise of green solutions in both agriculture and finance.

Commercial lending to the agricultural industry remains low, contributing to only 4% of total lending portfolios, according to a 2018 KBA analysis titled “Realisation of Full Potential of the Agriculture Sector.”

In addition to the training, the partners will ensure that green and digital investment projects with appropriate products supplied by KBA member banks solve the issues agribusinesses have in obtaining bank loans.