DigiFarm and Family bank to provide Embu farmers with loans and insurance

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Family Bank and DigiFarm have partnered to provide about 1000 farmers in Mbeere North and South sub-counties of Embu county with access to digital credit for inputs and insurance to boost their agricultural production. The farmers will be able to borrow and access the funds digitally through the DigiFarm platform, an agri-tech solution that offers a range of services to smallholder farmers.

The financing amount will depend on the acreage size and crop cycle of each farmer, who has a maximum of two acres. The farmers will also receive innovative insurance that covers them against production shocks such as droughts and diseases. These shocks are common in Arid and Semi-Arid Land (ASAL) counties such as Embu, where the production volume of maize declined by 6.5 per cent to 34.3 million bags in 2022, according to the Economic Survey 2023.

In addition to financing and insurance, the farmers will benefit from training on sustainable agricultural practices, market linkage and financial literacy to promote farming resilience and produce. The partnership builds on a similar programme that has been running for the last five years, which has helped many farmers graduate from subsistence to commercial farming.

The partnership is expected to have a positive impact on the livelihoods of the farmers and the food security of the county and the country. By providing access to efficient and convenient funding, the partnership will enable the farmers to buy essential farming products, such as seeds, fertilizers and pesticides. By providing access to insurance, the partnership will improve the farmers’ financial resilience to production shocks. By providing access to technology, the partnership will reduce the farmers’ costs and improve their profitability.

The Family Bank and DigiFarm partnership will also facilitate market linkage for the farmers, who will be able to redeem their credit vouchers to receive farm inputs from the DigiFarm partner agrovets in the county. The farmers will also be able to connect with buyers during harvest through the DigiFarm platform, which offers agronomy advice, credit for inputs, insurance and other services.

The partnership between Family Bank and DigiFarm is part of a larger initiative to transform the agriculture sector through technology and partnerships. The two partners will further extend the partnership to sorghum farmers in Meru County. The initiative is also supported by the International Food Policy Research Institute, which has implemented a risk-contingent credit program to assess whether innovative insurance products can increase access to finance by smallholder farmers.

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