Homa Bay Farmers Get Sh52 Million Boost to Grow Agribusinesses and Expand Access to Credit

Farmers in Homa Bay County are set to benefit from more than Sh52 million in government grants aimed at strengthening farmer organisations, expanding agricultural enterprises and increasing access to affordable credit.

The funding has been provided through the National Agricultural Value Chain Development Project (NAVCDP), targeting Farmer Producer Organisations (FPOs), savings and credit cooperative societies (Saccos) and other community-based agricultural structures.

NAVCDP Homa Bay County Project Coordinator Henry Nzinga said part of the money had been provided as inclusion grants to help farmer organisations and Saccos meet essential operating costs.

The grants will finance needs such as office equipment, bookkeeping, office rent and mobilisation of new members, helping the organisations build the capacity needed to serve farmers more effectively.

A separate matching grant will provide additional capital to Saccos, allowing them to increase lending to their members through revolving credit arrangements.

Of the funds disbursed, about Sh28.4 million went towards inclusion grants, while Sh16.4 million was allocated as matching grants for Saccos. Another Sh8 million was set aside for Community Driven Development Committees to establish agricultural demonstration sites.

The inclusion funding will be shared between FPOs and Saccos, with about Sh3.4 million going to FPOs and Sh23 million to Saccos.

The programme plans to establish 160 demonstration sites across Homa Bay, with each ward expected to have four sites. The sites will give farmers practical exposure to improved production methods and technologies across the value chains supported by the programme.

Agripreneurs working under the project have also received 40 digital agricultural resource kits valued at Sh5.5 million. The kits contain tablets, smart projectors, power banks and soil augers.

The tablets are loaded with agricultural extension materials that agripreneurs will use when training farmers and providing technical support within their communities.

NAVCDP is supporting five major value chains in Homa Bay: rice, coffee, bananas, dairy and cotton. Its interventions are focused on improving production, strengthening market access and making financial services more accessible to farmers.

The project is currently working with 5,722 farmer groups and has supported the formation of 40 Saccos, with each ward having one Sacco.

Homa Bay County Executive Committee Member for Agriculture Joash Oloo said the grants were designed to give farmers and their organisations the financial foundation needed to expand their businesses.

He said the funding would serve as seed capital, with beneficiaries expected to use it to strengthen their organisations, while Saccos receiving matching grants would lend the money to members through revolving financing.

The county expects the programme to create more opportunities for young people and women by supporting agricultural enterprises capable of generating employment and income.

Homa Bay Deputy Governor Dannish Onyango said stronger farmer organisations would help raise productivity while improving household incomes and food security.

He said the county would continue working with financial institutions, universities and development organisations to help farmers turn agricultural activities into sustainable businesses.

The county also signed a Memorandum of Understanding with the World Resources Institute Africa as part of efforts to reduce food loss and wastage along the agricultural supply chain.

Onyango said increasing production alone would not deliver maximum benefits to farmers if significant quantities of produce were lost after harvest. Reducing post-harvest losses, he said, would help farmers retain more of the economic value generated from their crops and livestock.

The combination of farmer financing, demonstration farms, digital extension services and measures to reduce food losses is expected to strengthen Homa Bay’s agricultural value chains while giving more farmers the tools to expand from small-scale production into viable agribusinesses.