Co-op Bank and CARE Open a $7.5M Credit Path for Women Farmers
Women-led farmer groups in Homa Bay County are set to benefit from a new financing programme worth USD 7.5 million following a strategic partnership between Co-op Bank Kenya and CARE International Kenya aimed at expanding access to agricultural credit.
The two organizations signed a Memorandum of Understanding (MoU) in Kisumu to launch a de-risking guarantee fund that will enable women farmer groups to access loans with reduced collateral requirements, addressing one of the biggest barriers preventing smallholder farmers from obtaining formal financing.
The initiative will begin with a pilot in Homa Bay County, where 21 women farmer groups, each with about 20 members will receive support through an agricultural cooperative responsible for coordinating activities and linking the groups to financial services.
The guarantee fund is designed to reduce lending risks for the bank while making it easier for women farmers to secure affordable credit to invest in agricultural production, equipment and other income-generating activities.
David Akumi, Head of Business Banking at Co-op Bank Kenya, said the partnership aligns with the lender’s long-standing focus on supporting Kenya’s cooperative movement and agricultural sector.
“The guarantee fund allows us to lend with confidence to women farmer groups who have historically been locked out by collateral requirements. We expect this model to demonstrate strong repayment performance and to inform how we scale similar facilities across other counties.” He added.
For CARE International Kenya, the programme is expected to strengthen women’s economic participation by improving access to capital for agricultural enterprises.
Country Director, CARE International Kenya, Getrude Misango said limited access to affordable credit continues to constrain many women farmers despite their significant contribution to Kenya’s agricultural production. She noted that the partnership is seeking to address that financing gap while improving household incomes and supporting the growth of women-led agribusinesses.
Beyond improving access to finance, the programme is expected to boost agricultural productivity by enabling participating farmers to invest in quality inputs, modern farming equipment and climate-resilient farming practices.
If successful, the Homa Bay pilot will serve as a model for expanding the guarantee fund to more counties as part of broader efforts to increase financial inclusion among smallholder farmers across Kenya.
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