The Government of the Republic of Kenya (GoK)
The Corporation has partnered with the Government of Kenya and Africa Development Bank Group (AfDB) to implement the ENABLE Youth Kenya program. The program is one of AfDB’s ENABLE Youth Initiatives under the Bank’s Feed Africa Strategy for Agricultural Transformation in Africa. The objective of the program is to create business opportunities and decent employment for young women and men along priority agricultural value chains in Kenya through the provision of entrepreneurship skills, funding and business linkages. The program is expected to train and empower 2,080 Agricultural Entrepreneurs (Agripreneurs), out of which 1,200 agribusinesses are expected to be generated. Each of the agribusinesses is expected to employ on average five other support workers, generating about 8, 000 direct jobs (including at least 4,000 for young women) in the first five years of the program. Agripreneurs that are not successful in establishing businesses will be better positioned to enter the professional agriculture jobs market and find employment with the private sector. The program cost is estimated at UA 25.77 million, of which AfDB is financing UA 21.28 million or 82.58 % and the Government of Kenya will contribute UA 4.49 million or 17.42%. The program is started in 2018 and will run for a duration of five years. The program includes the following components: (i) Component 1: Enabling Environment for Youth Empowerment in Agribusiness: (a) Sub-Component 1: Awareness creation and promotion of agriculture as a business; (b) Sub-Component 2: Access to land and financial services for youth agribusiness ventures; (c) Sub-Component 3: Upgrading of Youth Agribusiness Incubation Centres (YABICs). (ii) Component 2: Entrepreneurship and agribusiness incubation: (a) Sub-Component 1: Agribusiness Incubation and Acceleration Activities; (b) Sub-Component 2: Business plans and loan applications (iii) Component 3: Financing Youth Agribusinesses: Operationalizing risk sharing & financing mechanism (RSFM) (iv)Component 4: Program Management and Coordination: Program planning, implementation, supervision and monitoring activities. AFC is expected to implement the third component, Financing Youth Agribusinesses: Operationalizing risk sharing & financing mechanism (RSFM)
International Fund for Agricultural Development (IFAD)
On 31st May 2012, the Government of Kenya (GOK), the Alliance for a Green Revolution in Africa (AGRA) and the International Fund for Agricultural Development (IFAD) signed a six year Memorandum of Understanding (MOU) seeking to scale up access to agricultural financing in the country through the Programme for Rural Outreach of Financial Innovations and Technologies (PROFIT). PROFIT focuses on de-risking the agricultural sector and incentivizing financial and micro-finance institutions involved in agrifinance to implement its overall goal of reducing poverty in rural Kenya.
Alliance for a Green Revolution in Africa
AFC partnered with Alliance for a Green Revolution in Africa (AGRA) to support capacity building activities for the farmers in the Bura Irrigation and Settlement Scheme (BISS) through an agreement signed on February 09, 2015. The ultimate aim was to improve access to agricultural finance for the scheme farmers hence improving their economic and social welfare. The primary objectives of the project were: (i) Improve financial literacy skills among smallholder farmers; (ii) Improve the technical capacity of AFC, NIB and farmer organizations to deliver and manage innovative agricultural financial services; and (iii) Develop an innovative cloud computing model that integrates real time credit delivery with agronomic dynamics on the field. Objective ii) & iii) has already been achieved through the following milestones: (i) Developed a Value Chain Structured Finance model known as Farmer Information Technology Network System (FITNES), deployed it on servers hosted by AFC and conducted successful end-to-end tests; (ii) Developed training manuals for improving the technical capacity of AFC, NIB and farmer organizations to deliver and manage the innovative agricultural financial services through FITNES; (iii) Trained 148 trainers of smallholder farmers in: financial literacy; production and marketing; governance; irrigation and Water management operations and maintenance; and gender issues in farmer’s organizations. The final stage remains to recruit 10,000 farmers into the program. .