India’s High Commissioner to Kenya announced a $250 million (Sh36 billion) agricultural loan to Kenya, emphasizing its focus on mechanizing small-scale farming operations.
With Kenya’s 7.5 million smallholder farmers contributing 80 percent of the country’s agricultural output, the loan aims to address challenges such as limited mechanization and financing options, which have hindered the country from achieving its full farming potential.
The credit facility is expected to facilitate easier access to agricultural goods from India and support farming mechanization initiatives, as highlighted during the collaboration signing between Mahindra Tractors and Simba Colt Aspire Ltd.
The partnership between Mahindra Tractors and Simba Colt Aspire Ltd aims to provide a comprehensive range of tractors to farmers, aligning with Kenya’s goal to increase agricultural mechanization from the current 30 percent of arable land to over 50 percent by 2029.
This initiative, supported by the Kenyan government’s plans to reduce food imports through mechanization and industrialization, is expected to boost job creation and enhance the economy’s resilience through various crop value chains.
Additionally, stakeholders emphasize the need for financial incentives and tax incentives for farmers to further drive agricultural mechanization and enhance productivity in Kenya’s farming sector.
Source: The Star
