AFC Unveils Strategic Plan 2023-2027 to Boost Kenya’s Agricultural Sector

The Agricultural Financial Corporation (AFC) has unveiled its 2023-2027 Strategic Plan, designed to promote sustainability and boost productivity, setting the stage for the future of Kenya’s agricultural sector.

The Cabinet Secretary for Agriculture and Livestock Development, Hon. Mithika Linturi, emphasized AFC’s commitment to transforming Kenya’s agricultural landscape.

He highlighted that this strategic plan would enhance the sector’s vital role in the economy, significantly contributing to the Gross Domestic Product (GDP) and sustaining the livelihoods of millions, especially in rural areas.

Agriculture directly accounts for about 25% of Kenya’s GDP and indirectly supports an additional 27% through other sectors like manufacturing. Moreover, it employs 40% of the country’s population, underscoring the necessity for continued investment in this sector.

“AFC has played a crucial role in agricultural development, contributing an average of 26% to the total credit sector since independence,” stated Linturi. He acknowledged the government’s support, noting President Ruto’s allocation of Kshs 1 billion to AFC, enhancing financial accessibility as highlighted during the recent Madaraka Day celebrations in Bungoma County.

In a speech delivered by the Principal Secretary for Livestock Development, Jonathan Mueke, the CS revealed that the government has partnered with Exim Bank to provide Kshs 15 billion to AFC. This funding will support the corporation’s agenda for agricultural mechanization, offering low-cost farm inputs to farmers.

“This AFC Strategic Plan 2023-2027 reaffirms our Ministry’s dedication to advancing Kenya’s Agriculture and Livestock sector,” Linturi emphasized. He outlined AFC’s objectives, including increasing agricultural productivity, promoting climate-smart and sustainable practices, and improving farmers’ access to finance.

Linturi also highlighted financial inclusion as a key pillar of the strategic plan, emphasizing the importance of adopting technologies and practices to enhance efficiency, reduce costs, and boost productivity. Additionally, the Ministry is committed to supporting AFC in fostering an environment conducive to innovation and entrepreneurship.

“The AFC Strategic Plan arrives at a crucial time, offering financial solutions that empower farmers and agribusinesses, thereby enhancing food security,” noted Linturi. He commended AFC for its ongoing efforts in supporting the agricultural sector, expressing confidence that the strategic plan would build on this success and elevate AFC to new heights.

Linturi urged AFC to collaborate closely with the Ministry of Agriculture and Livestock Development, other government agencies, financial institutions, the private sector, and various organizations, stressing that collaboration is key to success. “Together, we can create a more vibrant and prosperous agricultural sector in Kenya,” he asserted, appealing to those indebted to AFC to settle their debts to enable the Corporation to continue its operations.

He called on all stakeholders to join forces with the Ministry in this global effort to transform the agricultural sector and improve the livelihoods of all farmers.

By: Ann Nyambura