This is a list of Agricultural Finance Corporation Loan products (AFC). AFC is a Development Finance Institution fully owned by the Kenyan government. It was founded in 1963 as a subsidiary of the then-existing Land and Agricultural Bank.
It was later established as a full-fledged financial institution under the AFC Act (Cap 323 of the Laws of Kenya) in 1969. It has grown over the years to become the largest government credit agency, designated to offer finance specifically for agricultural development.
The Agricultural Finance Corporation offers the following loan products.
Agricultural Finance Corporation Loan Products
1. Equipment/Machinery
This loan is provided by AFC for the acquisition of farm machinery that aids in the production and transportation of farm produce.
Features
It is intended for both individuals and organizations. The repayment time is from 2 to 5 years, with annual installments.
Items funded
- Farm equipment and implements
- Pickup and truck for farm produce transport
Requirements/Eligibility
- Provide written quotes from reliable vendors.
- Vehicle/machinery to be registered jointly with the corporation
- Comprehensive insurance coverage is required for machinery.
- A deposit of 30% of the net purchase price is required for new machinery, and a deposit of 50% is required for refurbished machinery.
2. Agribusiness Loans
This loan product is intended to help agribusiness traders, particularly those looking to establish or are already operating agricultural micro-enterprises.
Features
- Created for both individuals and organizations
- Repayment term of up to three years
- The annual interest rate is 10%.
Items funded
- Farm product traders, transporters, marketers, and processors
Requirements/Eligibility
- Viability of the business
- Tangible security for the loan
- 20% equity contribution toward the project
Read also, Agribusiness Loans Providers In Kenya
3. Livestock and Fisheries Development loans
These are loans for the production of livestock and fisheries.
Features
2-5 year repayment period with annual installments
Created for both individuals and organizations
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