USAID has today signed a Sh. 940 million loan guarantee agreement with micro-lender Musoni Microfinance Limited.
Following the loan advancement, Musoni is expected to increase its lending base from the current fifteen counties.
“With this guarantee, Musoni intends to collaborate with partners along the agricultural value chain in order to provide smallholder farmers with quality inputs, market linkages, infrastructure and other auxiliary services,” said Musoni Chief executive officer, Stanley Munyao on Wednesday.
The funding is aimed at increasing access to credit for marginalised smallholder farmers and agricultural micro-enterprises.
The guarantee will also help Musoni scale-up its digital lending to boost agriculture financing, improve farmers’ livelihoods and increase food security.
“The agreement we are launching today is one of the many ways that the US government partners with the private sector through agriculture in order to assist Kenya on its journey to self-reliance,” said USAID Kenya and East Africa Investment Team Lead Brook Adam.