KNCCI, Co-operative Bank to expand financial access for small businesses

Co-operative Bank of Kenya Head of Retail Trade Finance Elizabeth Makokha and KNCCI National Chairperson, Kenya–China (Asia) Trade and Investment Initiative Richard Ndungu during the MOU signing. [Courtesy]

Limited access to affordable trade finance continues to lock out thousands of Kenyan farmers, cooperatives and micro, small and medium enterprises (MSMEs) from lucrative international markets despite growing global demand for Kenya's agricultural produce.

In a bid to address the financing gap, the Kenya National Chamber of Commerce and Industry (KNCCI) and Co-operative Bank of Kenya have strengthened their partnership to expand access to trade finance and unlock export opportunities for farmers, cooperatives and MSMEs.

The initiative comes at a time when agriculture remains the backbone of Kenya's economy, contributing about 33 per cent of the country's Gross Domestic Product (GDP) and employing more than 40 per cent of the population and about 70 per cent of rural households, according to the Kenya National Bureau of Statistics (KNBS) Economic Survey 2025.

Despite the sector's importance, limited access to affordable credit and trade finance continues to constrain smallholder farmers, cooperatives and export-oriented MSMEs from scaling their businesses and accessing international markets.

Speaking during a meeting between KNCCI and Co-operative Bank to review implementation of their memorandum of understanding (MoU), KNCCI president Erick Rutto said access to finance remains one of the biggest obstacles to growing Kenya's export sector.

"Access to finance remains one of the greatest constraints facing our farmers, cooperatives and MSMEs. Through this partnership with Co-operative Bank, we are developing practical financing solutions that will enable businesses to trade more competitively, increase exports, create jobs and improve incomes across the agricultural value chain," said Dr Rutto.

He said the partnership goes beyond financing by equipping businesses with export readiness support, market linkages, financial literacy and capacity-building programmes needed to compete successfully in regional and international markets.

The financing initiative also aligns with efforts to strengthen Kenya's MSME sector, which continues to drive employment and economic growth.

Richard Ndungu, national chairperson of the Kenya-China (Asia) Trade and Investment Initiative, said the partnership was conceived after the Chamber repeatedly encountered exporters who had secured international buyers but lacked the working capital needed to fulfil export orders.

"Today marks an important milestone in our journey to strengthen Kenya's export sector. As we engaged exporters and buyers, one challenge was raised consistently—the lack of accessible and structured financing to enable businesses to fulfil export orders, aggregate produce and compete effectively in international markets," said Ndungu.

He said the Chamber's Export Committee worked closely with Co-operative Bank through a series of consultations to design a financing framework tailored to the needs of exporters. The programme combines structured trade finance with market access, enabling businesses to procure produce, undertake value addition and meet export commitments without being constrained by cash flow challenges.

Ndungu said the committee had also played a key role in expanding Kenya's footprint in Asian markets by identifying priority export products, facilitating buyer-seller linkages and opening new commercial opportunities for Kenyan businesses.

"The committee has gone beyond developing a financing solution. It has actively opened new markets across Asia, identified products with strong export potential and connected Kenyan businesses with international buyers. Financing and market access must go hand in hand if we are to grow our exports sustainably," he said.

The financing push comes as Kenya's export earnings continue to grow. According to the Economic Survey 2025, domestic export earnings rose to approximately Sh932 billion in 2024, driven largely by strong performance in agricultural exports, particularly horticultural produce. The growth highlights the significant opportunity for Kenyan exporters if financing and market access bottlenecks are addressed.

The KNCCI–Co-operative Bank partnership seeks to expand access to pre-shipment financing, trade finance solutions, export market linkages, financial literacy, export readiness programmes and business development support for farmers, cooperatives, exporters and MSMEs.

The meeting brought together senior KNCCI and Co-operative Bank executives.

The partners also reviewed the performance of the AGF Dairy Climate Smart Programme, which has disbursed more than Sh533 million, with a financing pipeline exceeding KSh326 million. Plans are underway to scale the initiative to more than Sh5 billion across agriculture, the blue economy and other productive sectors.

Both institutions reaffirmed their commitment to joint capacity building, financial literacy, export readiness programmes and regular stakeholder engagement aimed at enhancing the competitiveness of Kenyan businesses, increasing exports and improving incomes for farmers, cooperatives and MSMEs.