Cereal farming remains a potentially profitable venture for Kenyan farmers, driven by demand for staple foods such as maize, rice, wheat and sorghum.

With investment in quality inputs, modern machinery and proper storage, farmers can improve yields, reduce post-harvest losses and earn better returns from their produce.

However, the capital-intensive nature of cereal production continues to constrain farmers seeking to expand their operations.

Over the years, farmers have decried the high cost of seeds, fertilisers, pesticides, machinery, and storage facilities, among other farm management needs.

To address this challenge, the Co-operative Bank of Kenya introduced a financing solution for farmers in cereal production and pulse farming to help them meet operational needs and invest in equipment to support their businesses.

Financing inputs and farm mechanisation

The financing facility targets producers of maize, rice, wheat, sorghum and barley, as well as farmers growing pulses.

It is structured to support the acquisition of farm inputs and equipment needed across different stages of production, from land preparation to harvesting and storage.

Eligible investments include tractors, combine harvesters, threshers and grain driers, which can help farmers improve efficiency and reduce dependence on manual labour.

The facility also caters for storage equipment and the construction of storage facilities, enabling farmers to improve grain handling and preserve produce after harvesting.

Loan access and requirements

Co-op Bank’s Cereal Farmers Loan is available to both new and existing customers, provided they maintain an account with the bank.

Applicants are required to submit bank statements covering the preceding 12 months, audited accounts for the past three years and management accounts where applicable.

They must also provide cash flow projections to support the assessment of their businesses and repayment capacity.

The minimum financing available under the facility is Sh50,000, while the maximum amount is determined by the applicant’s ability to repay the loan.