Boost for tea farmers as firm gives Sh1.1b to drive activities
Tea farmers are set to benefit from an Sh1.1 billion credit to increase access to sustainable agricultural practices.
The funds are to be disbursed through Family Bank to support sustainability-certified companies as well as small-holder farmers through loans.
Jens Mackensen, chairman of the board of directors of the eco.business Fund, an impact investment fund, said the move is expected to bring stability to the tea sector.
“This partnership with Family Bank, we believe can ramp up support to certified agribusiness in Kenya and ensure we contribute to biodiversity conservation, sustainable use of natural resources and mitigation of climate change and adaptation to its impacts,” he said.
According to eco.business, supporting certified agricultural producers in agricultural exporting countries such as Kenya is helping create a stable uptake from developed markets, steering other local producers towards more sustainable production methods.
Mackensen added that such an initiative will ensure the long-term competitiveness of the agribusiness sector.
Available supply
According to the World Bank Group climate change action plan 2016-2020 the world will need to produce 50 per cent more food by 2050 but estimates that with current practices, there will be a 40 per cent shortfall between demand and available supply.
Family Bank CEO Rebecca Mbithi (pictured)said the partnership is a testament to the lender’s commitment to supporting the growth of local markets, especially critical markets such as tea farming.
“It is through such strategic partnerships that we can support the sustainability and business continuity of SMEs in the agriculture, forestry, fishery and tourism sectors,” she said.
