The Kenya Kwanza government promised to provide adequate, affordable working capital to all farmers through cooperative societies.
Positive steps include an increased budget for agricultural financing, continued value chain reforms, and specific funds injected into sectors like coffee to provide credit at subsidized rates. Partnerships with financial institutions and SACCOs are also being leveraged to disburse funds to farmers.
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.
