Additionally, in October 2025, the Cabinet Secretary, Ministry of Agriculture and Livestock development, revealed that the government was planning to merge the Commodities Fund and the Agricultural Finance Corporation while also raising the AFC’s core capital to unlock longer-term and low interest financing for farmers. He additionally proposed the establishment of an Agricultural Fund similar to the Constituency Development Fund to unlock additional financing for agriculture.
However, significant challenges persist, including systemic financing gaps that disadvantage smallholders, governance issues and mismanagement within some cooperatives, the high-risk perception of the agricultural sector, and a lack of necessary infrastructure and technology. These hurdles indicate that while the promise has seen targeted progress, widespread and equitable access to affordable working capital for all farmers remains elusive.
While the government has taken and/or proposed steps to secure affordable financing for the agricultural sector, there are no publicly available data demonstrating that the government has implemented such funding through cooperatives as promised.
