NAIROBI, Kenya, Oct 16 – Fewer Kenyan farmers are borrowing to finance their operations despite improved agricultural performance, a new Central Bank of Kenya (CBK) survey shows, signaling persistent challenges in rural credit access.
According to the September 2025 Agriculture Sector Survey, only 31 percent of farmers reported borrowing to finance farming activities, down from 41 percent in July.
“The proportion of farmers who reported to have borrowed to finance farming was relatively low at 31 percent in September 2025 compared to 41 percent in July 2025,” read the report in part.
“However, a larger proportion reported to have borrowed from banks in September 2025 compared to July 2025.”
The decline comes despite CBK’s recent move to lower its base lending rate to stimulate private sector borrowing and spur economic activity.
The regulator had also directed commercial lenders to increase credit flow to productive sectors, including agriculture, where affordable financing remains key to sustaining growth and ensuring food security.
CBK noted that the sustained monetary policy easing has led to relatively lower lending rates, which partly explains the increase in the share of farmers borrowing from banks and SACCOs.
However, overall borrowing among farmers remains subdued, reflecting a cautious credit environment in the sector.
The report shows that Savings and Credit Cooperative Societies (SACCOs) have emerged as a major credit source, with 44 percent of farmers borrowing through their cooperatives, up from 19 percent in July. The share of farmers borrowing from the Hustler Fund remained low at 9 percent.
Most loans, about 94 percent, were used to purchase inputs such as fertilizer, seeds, and pesticides, while 53 percent went toward paying farm labour costs.
CBK emphasized that expanding access to affordable and reliable credit remains critical to boosting agricultural productivity and stabilizing food supply chains.
