The loans are being seen as a short term measure to help the country regain food security after three million bags of maize - a third of the national grain strategic reserves - were destroyed in post-election violence early this year. By end of last year, a total of 25,000 farmers had been given loans totalling over Sh3 billion under the seasonal credit loans scheme, while a further Sh2 billion was disbursed under the enterprise loans scheme. Equity Bank chief executive officer, Dr James Mwangi, said he expected the loan to transform lives through agriculture, explaining farmers would be able to produce and export more yield to take advantage of the high commodity prices. Over the years, partly due to the inability of the National Cereals and Produce Board (NCPB) - buyer of the last resort - to pay farmers promptly, the latter have opted for the middlemen offering lower prices for the produce. In February, Agra partnered with the Tanzania National Microfinance Bank (NMB) to launch a Sh396 million farm input credit scheme to benefit poor farmers and to improve the country’s network of rural agro-dealers. read more

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