This is a list of Agricultural Finance Corporation Loan products (AFC). AFC is a Development Finance Institution fully owned by the Kenyan government. It was founded in 1963 as a subsidiary of the then-existing Land and Agricultural Bank.
It was later established as a full-fledged financial institution under the AFC Act (Cap 323 of the Laws of Kenya) in 1969. It has grown over the years to become the largest government credit agency, designated to offer finance specifically for agricultural development.
The Agricultural Finance Corporation offers the following loan products.
Agricultural Finance Corporation Loan Products
1. Equipment/Machinery
This loan is provided by AFC for the acquisition of farm machinery that aids in the production and transportation of farm produce.
Features
It is intended for both individuals and organizations. The repayment time is from 2 to 5 years, with annual installments.
Items funded
- Farm equipment and implements
- Pickup and truck for farm produce transport
Requirements/Eligibility
- Provide written quotes from reliable vendors.
- Vehicle/machinery to be registered jointly with the corporation
- Comprehensive insurance coverage is required for machinery.
- A deposit of 30% of the net purchase price is required for new machinery, and a deposit of 50% is required for refurbished machinery.
2. Agribusiness Loans
This loan product is intended to help agribusiness traders, particularly those looking to establish or are already operating agricultural micro-enterprises.
Features
- Created for both individuals and organizations
- Repayment term of up to three years
- The annual interest rate is 10%.
Items funded
- Farm product traders, transporters, marketers, and processors
Requirements/Eligibility
- Viability of the business
- Tangible security for the loan
- 20% equity contribution toward the project
Read also, Agribusiness Loans Providers In Kenya
3. Livestock and Fisheries Development loans
These are loans for the production of livestock and fisheries.
Features
2-5 year repayment period with annual installments
Created for both individuals and organizations
Items funded
- Production of dairy products and beef
- Sheep and goat farming
- Keeping bees
- Product of pigs and poultry
- Capital for working purposes
- Production of fish
4. Cash Crop Loans
This credit facility is available from AFC for the cash production of tea, coffee, sugarcane, pyrethrum, cashew nuts, citrus, mango trees, bananas, stevia, and any other cash crops.
Features
- 2-5 year repayment period with annual installments
- Individual and group applications
Items funded
- Crop establishment and upkeep
- Processing equipment and operating expenses
Requirements/Eligibility
- Loan security that is tangible
- Crop kinds that are appropriate and authorized
- Processing facilities are available within acceptable distances.
5. Horticulture and Floriculture Loan
These are loans designed to fund horticulture and floriculture projects.
Features
- 2-5 year repayment period with annual installments
- Individual and group applications
Items funded
- Flowers, fruits, and veggies
- Greenhouses and accompanying machinery
- Water and power supply systems
- Harvesting and packing machinery
- Labor and other operating expenses
- Capital for working purposes
Requirements/Eligibility
- Floriculture and horticulture experience is required.
- Observance of regulatory requirements
- A sufficient amount of water
6. Loan for Water Development
These are loans for irrigation and livestock use of water infrastructure.
Features
Access to acceptable and adequate water catchment
Water licenses are issued by the appropriate water authority.
Water quality and quantity certification in the case of a borehole
Items funded
- Boreholes, shallow wells, and water tanks
- Pumps, pipes, and fittings
- Farm dams and irrigation equipment
- Installation-related labor and transportation
Requirements/Eligibility
- Crop viability
- Loan security that is tangible
- For maize and wheat, the minimum acreage financed is 5 acres.
7. Seasonal Crops Credit
These are loans for the production of maize, wheat, potatoes, rice, and other food crops with a maximum maturity of 12 months.
Features
A repayment period of up to 12 months is possible.
Created for both individuals and organizations
Items funded
- Harvest cost
- Production cost
Requirements/Eligibility
- Crop viability
- Loan security that is tangible
- The minimum acreage for maize and wheat is 5 acres.
8. School Loans
These are loans provided by the Agricultural Finance Corporation AFC to primary, secondary, and tertiary institutions in order for them to engage in school farming. The loan’s primary goal is to cover the expense of school nutrition.
Features
- Repayment term of 1 to 5 years
- Interest rates that are reasonable
- A security that is adaptable
Items funded
- Production of crops and cattle
- Farm equipment and infrastructure
- Agribusiness Horticulture
Requirements/Eligibility
- Proposal for the proposed project
- Open a Vuna relationship account with AFC
- Adequate land for the specified project.
