Transformation of AFC into a commercial bank to delay

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Board Chairman Franklin Bett says groundworks for the transformation is yet to start with the process requiring relevant legislations and permits from relevant authorities before it is initiated.

The government envisaged the transformation of the Agricultural Finance Corporation to a commercial bank in the model of agricultural banks in India, Malaysia and China. 

The transformation which was set to be actualized in its short-term strategy is likely to delay since the groundwork is yet to start

To become a fully-fledged commercial bank, Board Chairman Franklin Bett says crucial policies and laws should be enacted. 

In addition, he says the parastatal requires injection of requisite capital to compete in the financial services sector.

The Agricultural Finance Corporation is in talks with the Arab Bank of Economic Development  in Africa to offer it a Sharia compliant facility, as it seeks to diversify its product portfolio.

The African Development Bank has offered 1.9 billion shillings for onward lending to agricultural ventures by the youth. 

The funding which also comprises another 1.2 billion shillings by USAID for crops and livestock market systems, is expected to de-risk agriculture.