The National Bank of Kenya (NBK) has unveiled a Ksh2 billion agri-financing and empowerment initiative to support farmers and households in Kenya. The Kilimo Konnect investment solution will provide tailored financial services to help farmers overcome challenges related to working capital, equipment procurement and post-harvest processing.
Key stakeholders including Private Equity Support, Netherlands Enterprise Agency, Endless Africa and Grobox Ltd are working with NBK to offer interventions and capacity-building opportunities that promote adoption of technology centric agricultural solutions.
Speaking during the launch, NBK Managing Director, Mr George Odhiambo, emphasised the importance of supporting the agri-business sector, given the challenges farmers face in accessing finance.
“We have collaborated closely with our partners to co-create Kilimo Konnect, a dynamic proposition tailored for farmers. This solution aligns with NBK’s sustainability agenda to provide Green Financing Solutions for farmers to enable a sustainable future,” Mr Odhiambo.
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As part of the launch, NBK has provided two fully paid-up biodigesters to farmers, a 10% facility discount for the first 10 biodigester loans taken up by cooperative members, covered the cost of Last Expense Insurance for one year for 10 households, and initiated pilot feed advisory services for 10 farmers over three months.
In addition, farmers will buy and install biodigesters through affordable financing options. These devices enable them to convert organic waste into energy for both household and farm use to reduce operational costs and promote sustainable farming practices by leveraging renewable energy.
Kilimo Konnect brings together various stakeholders, including dairy cooperatives, fintech companies, and technical advisors, to guide farmers in using biodigesters. These partners will ensure the proposition’s success by promoting the adoption of innovative technologies and practices in agriculture.
Marnix Van Holland, the Senior Advisor, Climate Finance and Energy for the Netherlands Enterprise Agency (RVO) noted: “RVO has developed its Strengthening the Entrepreneurship Ecosystem for Clean Cooking (SEE-Clean Cooking) approach to bring a variety of stakeholders together to scale local market development. Therefore, under the African Biodigester Programme (ABC), we are excited to witness the involvement of local financial actors in supporting their entrepreneurship ecosystem.”
He said this collaboration is crucial in fostering sustainable growth for biogas companies and demonstrates the potential for long-term engagement that extends beyond the ABC programme itself. “By integrating financial actors, we believe Kenya is setting the stage for a robust and scalable clean energy future, aligning with broader goals of economic and environmental sustainability,” Van Holland said.
Ms Diana Gichaga, Managing Partner Private Equity Support (PES), the Access to Finance leads in Kenya, said working with NBK to catalyse this market-based approach that provides access to finance with technical support, represents a way to utilise the biodigester to address small holder farmer challenges on costs of inputs and energy.
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Through provision of clean energy and access to the organic fertilizer by-product for rural and peri-urban households, NBK is catalysing climate smart solutions at a micro-level, Ms Gichaga said. “This will assist in reducing greenhouse gas (GHG) emissions from use of firewood, which accounted for 94% of energy extracted from the environment by individual households across Kenya in 2023,” she added.
Through Kilimo Konnect, Mr Odhiambo says NBK says it seeks to transform the agricultural landscape in Kenya by ensuring that farmers are well-equipped to meet the challenges of modern farming and thrive in a competitive market.
