American development agency USAID has today signed a Sh940 million loan guarantee agreement with Nairobi-based credit-only microlender Musoni Microfinance Limited.
The firm is now set to develop and roll out credit to farmers along with targeting growers in three additional counties from its current reach of 15.
“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 deal 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.
source: BUSINESS DAILY