KNCCI partners with Co-op Bank to finance exports for small-scale farmers, traders

The Kenya National Chamber of Commerce and Industry (KNCCI) and Co-operative Bank of Kenya have partnered to bridge the financing gap in agriculture.

The move is aimed at curbing the limited access to trade finance for Kenyan farmers, cooperatives and Micro, Small and Medium Enterprises (MSMEs) despite growing global demand for Kenya's agricultural produce.

Speaking during the signing of the Memorandum of Understanding (MoU), the National Chairperson of the Kenya-China (Asia) Trade and Investment Initiative, Richard Ndungu, said the partnership will allow exporters to access capital needed to satisfy export trade deals.

"As we engaged exporters and buyers, one challenge was raised consistently the lack of accessible and structured financing to enable businesses to fulfil export orders, aggregate produce and compete effectively in international markets," he said.

Ndungu said the Chamber's Export Committee worked closely with Co-operative Bank through a series of consultations to develop a financing framework tailored to exporters' needs.

The programme combines trade finance with structured market access, enabling businesses to procure produce, undertake value addition and meet export commitments without being constrained by cash flow challenges.

He noted that the committee has opened new markets across Asia, identifying priority export products and facilitating business linkages between Kenyan exporters and international buyers.

"The committee has gone beyond developing a financing solution. It has actively opened new markets across Asia, identified products with strong export potential and connected Kenyan businesses with international buyers. Financing and market access must go hand in hand if we are to grow our exports sustainably," he said.

KNCCI President Dr. Erick Rutto said improving access to finance remains critical to unlocking the country's export potential and enabling farmers, cooperatives and MSMEs to compete globally.

"Access to finance remains one of the greatest constraints facing our farmers, cooperatives and MSMEs. Through this partnership with Co-operative Bank, we are developing practical financing solutions that will enable businesses to trade more competitively, increase exports, create jobs and improve incomes across the agricultural value chain," said Dr. Rutto.

He said the partnership aligns with efforts to strengthen MSMEs, which continue to drive Kenya's economy and employment.

The initiative comes at a time when agriculture remains the backbone of Kenya's economy, contributing about 33 per cent of the country's Gross Domestic Product (GDP) and employing more than 40 per cent of the population and about 70 per cent of rural households, according to the Kenya National Bureau of Statistics (KNBS) Economic Survey 2025.