The World Bank said Thursday it has approved 28.75 billion shillings (250 million U.S. dollars) International Development Association (IDA) credit to help Kenyan farmers to enhance value addition and access to markets.
According to Keith Hansen, World Bank Country Director for Kenya, the credit for the national agricultural value chain development project (NAVCDP) will help 500,000 small-scale farmers in Kenya who are engaged in nine value chains across 26 counties, the World Bank said in a statement issued in Nairobi, the capital of Kenya.
Hansen said the project will unlock new opportunities for maximizing finance and private sector investments in the nine value chains through a range of value chain investments and other enabling initiatives such as improved subsidy through e-vouchers and operationalizing warehouse receipt financing.
The lender said the project will mostly focus on farmers who are engaged in dairy, poultry, fruits (banana, mango, and avocado), vegetables (tomato & potato), coffee, cotton, cashew nut, apiculture, and pyrethrum value chains.
It said the project will boost investments in existing interventions around productivity enhancement, community-led farmer extension, water management and data-driven value chain services.
According to World Bank, the NAVCDP will introduce intensified investments into the select value chains, scale up value addition and market linkages with agribusiness off-takers and small and medium enterprises, support farmer-led irrigation development (FLID), enhance access to credit and support the rollout of urban food system pilots in select clusters.
Vinay Vutukuru, senior agriculture economist and the task team leader said the implementation of the digital agriculture initiatives, farmer-led irrigation development initiative and the safer urban food systems initiative are innovative and will provide insights for future World Bank initiatives in these areas.
“Under the urban food system pilot, climate-smart agriculture technologies will be promoted and scaled up for urban and peri-urban farmers and market linkages between rural producers and urban consumers will be strengthened,” Vutukuru said. Enditem