Sigh of relief for Githunguri dairy farmers as sacco secures Sh500 million from World Bank

Githunguri Dairy and Community Chief Executive Officer Charles Kioko shakes hands with AVLC Chief Executive Andrew Kanyutu  after signing a Sh500 million World Bank funding deal. [Kimaku Chege, Standard]

Dairy farmers and small-scale traders under the Githunguri Dairy and Community (GDC) Sacco are set to benefit from a Sh500 million credit facility funded by the World Bank.

The financing will enable members to access affordable mobile-based loans to purchase modern dairy equipment, upgrade cowsheds, buy animal feeds, and expand their income-generating activities.

GDC Chief Executive Officer Charles Kioko said the initiative will make financing more accessible to ordinary farmers and small traders, boosting productivity and household income.

“This funding is a game changer for our members. Through digital loans, farmers and small-scale entrepreneurs will be able to invest in better practices and grow their businesses,” said Kioko.

The funding was made possible through a partnership between GDC and the global consultancy firm AVLC, which assisted the Sacco in securing the World Bank’s Safer Fund, a program aimed at strengthening small businesses and rural enterprises in the post-pandemic recovery period.

The agreement was formalised Wednesday through the signing of a letter of offer between AVLC and GDC, marking the culmination of over a year of collaboration between the two institutions.

He said the Sacco will distribute the funds digitally, providing short-term loans ranging from one to six months.

The approach, he noted, will make access to credit easier, faster, and more convenient for farmers and small entrepreneurs.

“Our goal is accessibility, affordability, and convenience. By using mobile digital lending, we will ensure these funds reach farmers quickly and create measurable community impact,” he said.

Kioko’s sentiments were echoed by AVLC Chief Executive Andrew Kanyutu who said the firm guided GDC throughout the process to ensure their proposal met the standards required by international financiers.

“This collaboration shows that local cooperatives can connect with global institutions to bring real transformation to farmers and small traders in rural areas,” Kanyutu explained.

The Sh500 million digital facility will be implemented and monitored annually to evaluate its impact on the Sacco’s more than 38,000 members, most of whom are dairy farmers and small business owners.

“Our approach is to work with structured, regulated institutions like GDC to connect them to global finance,” Kanyutu said.

The World Bank’s Safer Fund was established to help MSMEs recover from the disruptions caused by the COVID-19 pandemic while strengthening business resilience.