Rédaction Africa Links 24 with Kenyans.co.ke
Published on 2024-04-10 14:20:17
A recent survey released on Tuesday, April 9, sheds light on the increasing dependence of farmers on government subsidies and alternative funding sources like banks, Savings and Credit Cooperative Societies (SACCOs), and the newly introduced Hustler Fund to acquire fertilisers, crucial for enhancing agricultural production amid financial challenges. The Central Bank of Kenya’s Agriculture Sector Survey from March 2024 revealed that farmers had taken out more loans in March compared to January 2024, as they prepared for the March-May 2024 long rains by tilling land and purchasing seeds, fertilisers, and farm equipment.
The survey pointed out that farmers predominantly sought financial assistance from banks, SACCOs, and digital loans, with a growing number turning to the recently established Hustler Fund for support. A significant portion of the loans obtained were directed towards buying inputs, followed by labor payments, indicating the ongoing financial struggles faced by farmers, exacerbated by increasing input costs. High-interest rates were identified as a major barrier to accessing finance, alongside concerns about potential auctioning in case of default and the unpredictable nature of rain-fed agriculture, which deterred farmers from seeking credit due to fears of crop failure.
Despite government efforts such as subsidised fertiliser programs and discounted tractor services at the county level aimed at easing financial burdens, high input costs remained a hindrance to agricultural progress, especially for fertilisers, seeds, and pesticides. The survey highlighted a notable rise in the proportion of farmers accessing government-subsidised fertilisers, reaching 67 per cent in March 2024 from 53 per cent in January 2024. However, challenges like lack of information, logistical constraints, and supply-demand imbalances persisted, limiting access for some farmers.
To address these challenges, the Government has intensified its efforts to provide subsidised fertilisers and tractor-hire services at the county level. The report also mentioned that despite being a relatively new initiative, the Hustler Fund has shown promising results, enabling up to 10 per cent of sampled farmers to access credit by November 2023, a figure that has seen a slight increase in the March 2024 survey. The Agriculture Sector Survey of March 2024 collected data on wholesale and retail prices of various food items, price change expectations, and factors influencing agricultural production.
Respondents for the survey were drawn from select wholesale and retail markets, as well as farms in major towns like the Nairobi Metropolitan area and neighboring counties such as Kiambu, Kajiado, and Machakos. Other towns included Naivasha, Gilgil, Nakuru, Narok, Bomet, Kericho, Kisumu, Mombasa, Kisii, Eldoret, Kitale, Nyandarua, Nyahururu, Mwea, Isebania, Meru, Nyeri, Isiolo, Oloitoktok, Namanga, Makueni, and Molo.
Overall, the survey highlighted the challenges faced by farmers in accessing finance and inputs, as well as the various initiatives and programs in place to support agricultural production in Kenya.
Read the original article on Kenyans.co.ke
