How Kenyan Farmers Can Access Agricultural Loans and Grants

Farmers in Kenya have access to a range of loans and grants designed to boost agricultural production and support enterprise development.

Initiatives such as the AgriFI Kenya Challenge Fund, the Youth Enterprise Development Fund (YEDF), and the Forest and Farm Facility (FFF) by FAO Kenya offer financial support, training, and technical assistance to farmers, youth groups, and community organizations.

These programs aim to increase productivity, create jobs, and empower rural communities by helping farmers purchase equipment, expand businesses, and access government procurement opportunities.

How Kenyan Farmers Can Access Agricultural Loans and Grants

AgriFI Kenya Challenge Fund

The AgriFI Kenya Challenge Fund provides financial support to agri-enterprises through a series of funding calls.

A total of €18 million is available, with individual projects eligible for between €200,000 and €750,000, covering up to 50% of the total project cost.

Applicants are required to secure matching funds from external financiers, such as Equity Bank Kenya, cash contributions, or consortia partners.

The financial support is designed to be disbursed over a maximum period of 24 months, based on milestone achievements.

For those accessing loans through Equity Bank, the maximum loan tenure can extend up to seven years, depending on the bank’s internal policies and project agreements.

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Youth Enterprise Development Fund (YEDF)

The Youth Enterprise Development Fund (YEDF) was established through the Public Financial Management Act (The Youth Enterprise Development Fund) Regulations (2006), Legal Notice No. 167/2006, to promote employment for youth through enterprise development.

In 2007, it became a State Corporation under the then Ministry of State for Youth Affairs via Legal Order No. 63 of 2007.

It is currently managed by the State Department for Youth Affairs and the Creative Economy and is a flagship project under Kenya Vision 2030 (Social Pillar).

The fund provides loans to youth who wish to start or expand agricultural businesses, including the purchase of equipment and working capital.

Eligible applicants include individuals, registered groups, partnerships, and companies owned and run by youth.

Youth can access loans of up to Ksh 1 million, with an 8% interest rate and a 1% processing fee deducted at the time of disbursement.

Repayment Periods

• Ksh 20,000 to 50,000: Max 9 months
• Ksh 50,001 to 200,000: Max 12 months
• Ksh 200,001 to 500,000: Max 18 months
• Ksh 500,001 to 1,000,000: Max 24 months

Collateral/Security

• Loans up to Ksh 300,000: Social collateral from CBOs, SACCOs, or investment clubs. Flexible security options include chattels, stock, business assets, livestock, or guarantees.
• Loans above Ksh 300,000: Conventional security, including two guarantors for chattel-backed loans.

Also Read: How Kenyans Can Apply for Govt Fertilizer Subsidy Program

FAO Kenya – Forest and Farm Facility (FFF) Grants

The Food and Agriculture Organization (FAO) of Kenya, through the Forest and Farm Facility (FFF) project, provides direct grants to Forest and Farm Producer Organizations (FFPOs) and community conservation groups involved in farm and forest value chains that have positive environmental impacts.

FFF is a partnership between FAO, IIED, IUCN, and Agricord, funded by Finland, Germany, Norway, Sweden, the Netherlands, the USA, and IKEA through FAO’s Flexible Multi-Partner Mechanism.

The facility provides financial support and technical assistance to strengthen FFPOs representing smallholders, rural women’s groups, local communities, and indigenous peoples.

Grant Details

• Successful applicants receive grants ranging from USD 20,000 to USD 100,000.
• Grants are disbursed in three installments, depending on grant size, activity type, prior collaboration, and technical/administrative assessments.
• Grants support investments in small equipment, machinery, tools, and infrastructure that aid in value addition, increase productivity, and boost profitability. 

Many commercial banks, including Equity Bank, Co-operative Bank, KCB Bank, and Bank of Africa, also offer agricultural loans, each with its own specific eligibility requirements.

Farmers can also access loans through microfinance institutions, digital lenders, informal savings and credit groups, and SACCOs.

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