Faulu Bank, GIZ partner to unlock green financing to 400 farmers

By Peter Ochieng

Smallholder farmers in the dairy and horticulture value chains in the country can now access green financing from Faulu Microfinance Bank.

This, is on the backdrop of signing of a partnership deal between the bank and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), as part of the sustainable energy for smallholder farmers project being implemented in Ethiopia, Kenya and Uganda.

The Bank plans to disburse Sh120 million during the pilot phase to about 400 individuals in at least 6 counties.

They are Kirinyaga, Meru, Murang'a, Nakuru, Machakos and Makueni.

The disbursement will facilitate investment in solar powered irrigation, solar-powered cooling and solar drying among other solar powered technologies.

Commenting on the partnership, Faulu acting Chief Executive Officer (CEO) Julius Ouma said they are ready to support smallholder farmers.

“We are more than happy to partner with GIZ in empowering our traders and farmers across the country. Because of this project, we will support smallholder farmers in accessing and using solar energy to improve their livelihoods and increase their resilience to climate change."

"We also hope that our support will increase their productivity and economic competitiveness," added Ouma.

To be implemented in four phases, the project’s pilot phase will see Faulu Bank determine the financing needs of smallholder farmers for solar-powered appliances, and equipment and develop appropriate financial products.

The bank will also identify reputable distributor partners for the relevant solutions and build capacity for both staff and potential customers.

“Through the provision of green financing solutions, this partnership will unlock access to modern renewable energy technologies and climate-smart practices that improve farmers’ livelihoods, greenhouse gas emissions are reduced and their farming activities become resilient to climate change," said Valerie Ostheimer, Project Leader GIZ- EnDev Kenya.