Kenya has committed to establishing a landmark policy framework to sustainably finance agriculture as declining donor support compels the country to strengthen domestic resource mobilisation and private sector investment.

The commitment was announced during the Financing Agrifood Systems Sustainably (FINAS) Summit in Nairobi that was attended by where government leaders, development partners, financial institutions, investors and agricultural stakeholders endorsed a new financing approach inspired by the African Union-New Partnership for Africa’s Development (AU-NEPAD) Kampala Comprehensive Africa Agriculture Development Programme (CAADP).

Held under the theme Towards Sustainable Financial Architecture for Africa’s Agrifood Systems, the summit emphasised that Africa’s food systems can no longer rely on fragmented, donor-funded projects. Instead, delegates called for coordinated financing that combines public investment, private capital, development finance and innovative risk-sharing instruments under strong policy and institutional frameworks.

Cabinet Secretary for Agriculture and Livestock Development Mutahi Kagwe said Kenya is committed to working with county governments, investors, financial institutions, development partners, researchers, cooperatives, agribusinesses and farmers to build resilient, inclusive and competitive agrifood systems.

He said sustainable financing would strengthen food security, create employment opportunities, stimulate economic growth and secure long-term prosperity for future generations.

Cabinet Secretary for Cooperatives, Micro, Small and Medium Enterprises Wycliffe Oparanya called for financing systems that understand farmers’ realities, distribute risks fairly and reach producers at the grassroots.

“We must strengthen the cooperative model, aggregate farmers, improve productivity and channel more domestic savings into productive agricultural investments,” Oparanya said.

He outlined the complementary roles expected from various stakeholders, saying government will provide policy leadership while financial institutions mobilize capital. Development partners will offer catalytic support, researchers will generate evidence, cooperatives will organize farmers, MSMEs will create value and the private sector will drive investment and innovation.

Oparanya also urged borrowers to exercise financial discipline by maintaining proper financial records, using loans for their intended purposes and meeting repayment obligations.

He said the success of FINAS 2026 would ultimately be measured by tangible improvements in the lives of farmers, including affordable access to credit, stronger cooperatives, expanded youth-led agribusinesses, improved productivity among women farmers and communities benefiting from stronger agricultural markets and job creation.

One of the summit’s major outcomes, he noted, was the strengthening of partnerships among governments, financiers, development agencies and the private sector.

“These partnerships must now be coordinated and translated into practical action,” he said.

FSD Kenya Chief Executive Officer Rashmi Pillai highlighted the financing challenges facing smallholder farmers by sharing the story of Mwende, a farmer from Wote in Makueni County who must contend with unpredictable weather caused by climate change.

Pillai said farmers like Mwende require financial systems designed around their everyday realities rather than conventional lending models that often excludes vulnerable producers.

She observed that much of Africa’s food production is already financed through informal systems such as savings and credit cooperatives (SACCOs), input suppliers, community savings groups and diaspora remittances.

“The formal financial system must catch up with what is already working and keep farmers like Mwende at the centre of its decisions,” she said.

Youth entrepreneur Javin Kipruto Hutchingson, Chief Executive Officer of Bake Easy Products EA Ltd and a beneficiary of the Sustainable Urban Economic Development (SUED) programme that is supported by FSD Kenya, said access to financing enables entrepreneurs to improve food systems while creating sustainable businesses.

He said investments in agribusiness generate lasting benefits by improving nutrition, supporting local economies and creating employment opportunities for young people.

Environment and Climate Adviser at the United Nations Resident Coordinator’s Office Judith Mulwa outlined the UN’s blended finance model that combines grant funding with matching investments from impact investors through financial intermediaries.

She said organised cooperatives offer farmers a safer pathway to affordable credit by reducing lending risks and improving market access. Mulwa pointed out that farmers also need guaranteed markets through reliable off-takers since agricultural production is largely driven by demand.

She urged financial institutions and investors to focus on reducing risks faced by farmers rather than transferring all financial burdens to producers.

“Every agricultural investment should begin by asking how it improves farmers’ lives, addresses their challenges and makes them investable,” she said.

According to Mulwa, sustainable agricultural financing should distribute risks among government, financial institutions and private investors while promoting inclusion, particularly for women and vulnerable groups.

The continental dialogue, guided by AU-NEPAD, forms part of a broader policy framework that national governments are expected to implement through county governments to strengthen local agricultural systems.

Murang’a Governor Irungu Kang’ata shared his county’s experience in financing agriculture through digital subsidy programmes that provide farmers with electronic wallets to purchase farm inputs for dairy and mango production. Kang’ata said the county has introduced automated systems that connect farmers directly with manufacturers and buyers, helping improve efficiency and reduce production costs.

As an example, Kang’ata said sorghum farmers in Murang’a have secured supply agreements with East African Breweries, providing a guaranteed market for their produce. The county has also promoted the use of certified maize seed and fertiliser, resulting in a significant increase in crop yields compared to previous seasons.

In addition, Murang’a has expanded soil testing programmes aimed at reducing soil acidity, a major factor limiting nutrient uptake in coffee farms. The governor said the county government is working with the French Embassy, Equity Bank, the Senate and the National Assembly to support legislation recognizing geographical indications (GI) as intellectual property.

He observed that legal protection for products linked to specific regions would enhance the value of locally produced commodities such as Murang’a tea.

“We believe that if the value of Murang’a tea increases, the incomes and livelihoods of our people will also improve,” he said.

FINAS Summit concluded with benchmarking and investment tours that showcased Kenya’s emerging agricultural and industrial investment opportunities.

Delegates visited Konza Technopolis – southeast of Nairobi, Tatu Industrial City in the central region and the Dongo Kundu Special Economic Zone at the coast to explore innovations supporting agri-food systems, value addition and investment.

• A Tell Media / KNA report / Joseph Kamolo