Family Bank has acquired a Kes20 million loan portfolio guarantee facility from FSD Africa to accelerate lending to dairy farmers, cooperatives, dairy companies, and input suppliers.
The two-year agreement credit guarantee facility will make purchasing inputs for the dairy industry, such as fodder, concentrates, minerals, services for artificial insemination, and feed propagation, easier.
Family Bank Chief Executive Officer Rebecca Mbithi noted the dairy value chain has the potential to generate employment and exponentially grow our economy.
“ However, it continues to be impacted by the long severe drought and high cost of animal feed that has in turn reduced milk production in the country,” saidMbithi noted that through this credit facility,” she added.
The bank will increase financing to the dairy sector and assist it in overcoming these difficulties.
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The Kenya Dairy Board estimates that the dairy industry contributes 14% of Kenya's GDP, with smallholder dairy farmers producing 56% of the nation's milk.
Before this, Family Bank collaborated with Performeter and allocated Sh1 billion to help dairy cooperatives buy fodder.
Family Bank also worked with the Ndumberi Dairy Producers Co-operative Society to boost availability and access to high-quality fodder for 1,000 dairy producers.
