NAIROBI, Kenya, June 19 – Farmers increasingly relied on buyers of farm produce for financing in May 2026 as value-chain lending gained traction during the long rains season, according to a Central Bank of Kenya (CBK) survey.
The CBK Agriculture Sector Survey shows that 45 percent of farmers who borrowed to finance farming activities accessed credit from buyers in May, up from 24 percent in March.
The increase reflects growing use of value-chain financing, where buyers provide cash advances or farm inputs to farmers in exchange for future produce deliveries.
According to the survey, improved rainfall and positive expectations for agricultural output encouraged buyers to extend more financing to secure supplies ahead of harvests.
The trend highlights a shift away from traditional financing channels, with produce buyers emerging as a major source of credit for farmers.
CBK noted that favourable March–May rains boosted confidence in the sector, supporting stronger engagement between farmers and off-takers.
The survey also showed that other formal sources of financing, including SACCOs and digital lenders, played a smaller role compared to buyer-linked financing during the period.
The findings point to a growing integration of financing and marketing arrangements in agriculture as farmers seek easier access to credit while buyers move to secure future harvests.
