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FSD Projects
Building Core Capacity
Pushing the Access Frontier
Agricultural Finance
Finance for Growth
Developing the Payments Market

 

 
 
 

 

 
 
Agricultural finance

With around 80% of Kenyans involved directly or indirectly in the agricultural sector, agricultural finance is clearly a major priority. Few commercial banks or MFIs have products which address the sector effectively. Orthodox approaches to risk management have proven disappointing in underpinning agricultural credit. While some modesty in ambition is required in tackling this area, international experience nevertheless points to promising new directions in the context of liberalising agricultural markets.

FSD Kenya's activities within this area include:

Project Objective Status Timing
Meso : sector wide development
Index based weather Insurance Ascertain the viability of a smallholder index based weather insurance product in close co-ordination with the insurance industry Under Development Nov 07-Dec 09
Commodity price insurance Ascertain the viability of commodity futures in Kenya to provide price insurance accessible to smallholder farmers Under Development Aug 07-Oct 09
Managing agricultural risk Design and test toolkits to allow financial institutions to improve risk management of agricultural loan products and portfolios Under Development Jun 07-Jul 09
Area based institutional capacity study Analysis of existing and potential channels for delivery of agricultural finance to smallholder farmers Active/On-going Dec 06-Jun 07
Warehouse receipts development Develop warehouse receipts contract as a collateral instrument to manage seasonal price fluctuation for short term lending and futures contracts Under Development Apr 07-Sep 08
Value chain mapping Ascertain feasibility of analysing capacity to bear debt, by commodity/enterprise. Test acceptance of product by financial institutions Under Development Apr 07-Jun 08
Micro : retail capacity development
AAMA Support start-up of an innovative private sector company managing input finance and quality control for export horticulture. Under Development Apr 07-Apr 09
Rural institution capacity building Develop the capacity of high potential channels for delivery of financial services to small-holder farmers Under Development Dec 07-Feb 10
Agricultural finance innovations fund Encourage innovations in products and delivery mechanisms to reach agricultural markets Under Development Oct 05-Dec 09

 


 

 

 

 

 

 

 

 
 
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