AFC eyes banking licence

The Agricultural Finance Corporation (AFC) is set to transform into a bank for farmers.

This was revealed by board chair Franklin Bett (pictured) during the inauguration of the new board members.

“It is our desire to transform AFC in an agricultural development bank.

This will see the institution serve the agricultural value chain better and fulfil its key role in stimulating investment through agriculture,” said Bett during the function.

He said the institution will be modelled along success stories of agricultural banks in India, Malaysia, Thailand and China.

Mr Bett observed that international financial institutions have taken interest in the initiatives by AFC to exploit the agricultural potential in the country.

 “Already, the African Development Bank has committed Sh1.9 billion in support of youth initiatives in the country. These funds will be hosted at AFC and will go towards lending to youth agri-preneurs,” he said.

He revealed that AFC is in talks with the Arab Bank of Economic Development in Africa for a facility to operationalise AFC’s Islamic finance window. 

The corporation is collaborating with a number of USAID-funded programmes through which it is leveraging additional Sh1.2 billion to farmers.

“These partnerships will result in more responsive and inclusive models of service delivery to, especially, women and youth,” he said.

The new board members are Rukia Rashid, Rosemary Munio, Isaac Matu, Eng Muriuki Karue and Dr Zablon Ayiera. Others are Luke Kittony, Tobias Okongo, Prof Dulacha Barako and Lucas Meso.