Role of banks in supporting climate resilience investments for agricultural recovery post-floods

In the face of crisis, banks have a critical role in supporting the agriculture value chain and helping farmers rebuild their livelihoods. [iStockphoto]

Kenya's agriculture industry is hurting from the terrible impact of recent floods, which caused significant damage to farms, crops, and cattle, as well as the tragic loss of human life. According to estimates by the Ministry of Agriculture, Livestock, Fisheries, and Cooperatives, the floods affected more than 70,000 farmers, emphasizing the urgent need for intervention to help their recovery efforts.

To make matters worse, this weather variability, combined with the effects of climate change, would further disfranchise a sector that is typically regarded as high-risk by commercial banks, reducing credit flow to the sector, which currently accounts for less than 5% of total banking debt, according to data released by the Central Bank of Kenya.