Agriculture remains a key pillar of Kenya’s economy, supporting millions of livelihoods while contributing significantly to food production, employment, and household incomes.
From tea and dairy farming to other agricultural activities, the sector provides an important source of income for families across the country.
However, access to affordable and suitable financing remains a major obstacle faced by farmers when they seek to expand their operations.
It is against this backdrop that Equity Bank has introduced the Kilimo Maendeleo Loan, a financing facility designed to support farmers undertaking farm and personal development projects.
The facility is primarily available to farmers who receive regular monthly remittances through Equity Bank, including tea and dairy farmers.
It allows eligible customers to access financing for a range of investments, including construction of farm structures, development of zero-grazing facilities, installation of biogas plants, purchase of motor vehicles and land, as well as other social development needs.
A key feature of the facility is its repayment flexibility, with borrowers allowed up to 24 months to repay the loan. This provides farmers with a repayment window that can be aligned with their income flows.
Qualifications
To qualify, a farmer must have maintained a monthly remittance account with Equity Bank for at least three months and received at least one month’s remittance through the account.
Applicants are also required to provide account statements covering the previous three years from their former or current bankers.
For customers transferring their borrowing arrangements from another financial institution, formal confirmation from the previous bank allowing the remittances to be redirected to Equity Bank is required, alongside three years of account statements.
Applicants must also demonstrate their capacity to repay the facility and submit their three most recent payslips.
In addition, they are required to provide proof that they own the farm being used for agricultural production or present a valid lease agreement covering at least the next two farming seasons. Lease documents must be properly signed and witnessed by a lawyer.
Farmers seeking financing must also provide documentation showing what the funds will be used for. Depending on the project, this could include quotations, pro forma invoices or bills of quantities.
How to apply
Borrowers are required to visit the nearest Equity Bank branch and initiate an application by completing a loan application form. The bank then assesses the application before issuing an offer letter to successful applicants.
Once the customer accepts the offer and fulfils the required conditions, the loan is processed for disbursement.
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