Delegates from across Africa and beyond convened at the Kenyatta International Conference Centre (KICC) in Nairobi for the Financing Agri-Food Systems Sustainably (FINAS) Conference 2025, a three-day summit taking place from May 20th to 22nd. The conference opened with addresses from key leaders, including Kenya’s Cabinet Secretary for Agriculture and Livestock Development, Mutahi Kagwe, and the East African Community (EAC) Secretary General, Veronica Nduva.

Kagwe pointed to a persistent financing gap in the continent’s agriculture sector, estimating it at USD 60 to 100 billion annually. He highlighted Kenya’s case, where only three percent of the country’s US$49 billion commercial bank loan book in 2023 went to agriculture. Calling for innovative approaches, Kagwe emphasized the potential of agri-fintech solutions such as weather-based crop insurance, digital loans, and input delivery via mobile platforms.

EAC Secretary General Veronica Nduva reiterated the importance of the agri-food systems value chain across East African economies and highlighted the East Africa Regional Digital Integration Project (EARDIP) as a key initiative. She noted that EARDIP aims to strengthen digital infrastructure, particularly in rural areas, to support cross-border agricultural trade and enhance farmer access to finance, technology, and markets. Nduva also stressed the importance of targeting women, youth, and vulnerable groups in agri-finance policy and investment strategies.

Brian Milder, Founder & CEO, Aceli Africa,

Rethinking Sustainable Financing for Africa’s Food Systems at FINAS 2025

With years of hands-on experience designing and delivering innovative financing mechanisms across East Africa, Brian Milder brought sharp insight into the persistent barriers that have long kept capital from flowing to the small and medium agri-businesses (agri-SMEs) most critical to Africa’s food security.

Flipping the Risk-Reward Equation for Agri-SME Lending

At the heart of Brian Milder’s intervention was a candid recognition of why most financial institutions hesitate to lend to agri-SMEs. Unlike traditional large-scale businesses, agri-SMEs often operate in highly variable environments, serve smallholder farmers in informal value chains, and require relatively small loan sizes that carry high due diligence costs.

Brian Milder explained how Aceli Africa tackles this challenge by subsidizing the high costs of origination, due diligence, and monitoring for loans that would otherwise never be approved. By compensating lenders for the real risks and costs involved—particularly when financing enterprises that are youth-led, gender-inclusive, or climate-smart—Aceli helps reshape the commercial logic of agri-finance.

Data, Accountability, and the Role of Public Policy

Beyond incentives, Brian Milder emphasized the importance of data-backed decision-making and smart regulation. He challenged policymakers to move beyond generalized calls for agricultural finance and instead design policy instruments that distinguish impact-oriented lending—such as those financing off-taker models that reach thousands of farmers—from standard commercial loans.

He also highlighted the importance of learning loops, where data from real-world blended finance initiatives can feed into policy dialogues and inform larger national financing strategies.

Reclaiming Ownership in Agri-Finance

As the summit’s theme—Taking Ownership—reverberated through the halls, Brian Milder’s message was crystal clear: Africa cannot transform its food systems without transforming the logic of its financial systems.

He closed with a call for collaborative action between governments, donors, and financial institutions, rooted in transparency, measurable impact, and long-term thinking.

Dr. Samuel Tiriongo – Director, Research & Policy, Central Bank of Kenya

Reflections on the Evolution of Agricultural Finance and Credit Guarantees in Kenya

Dr. Samuel Tiriongo, Director of Research and Policy at the Kenya Bankers Association, delivered an in-depth presentation on Kenya’s evolving agricultural finance landscape. His remarks highlighted institutional transformations, the impact of regulatory shifts, and the strategic pivot toward more inclusive credit guarantee mechanisms.

Institutional Consolidation: Toward a Coherent Agricultural Ecosystem

Dr. Samuel Tiriongo began by recalling efforts to restructure Kenya’s agricultural financing institutions, citing the creation of the Agriculture and Food Authority (AFA) as a move to consolidate bodies like the Cotton Development Authority.

Interest Rate Caps and Their Consequences (2013–2020)

He then detailed the unintended consequences of the 2016–2020 interest rate cap era, noting that these regulations restricted lending to higher-risk sectors such as agriculture.

The result, Dr. Samuel Tiriongo explained, was a sharp decline in credit growth to agriculture—from double digits to around 4%–8%, severely limiting financial inclusion in the sector.

Emergency Credit Guarantee Scheme: The First Step (2019–2020)

With the outbreak of COVID-19, Kenya launched a Credit Guarantee Scheme (CGS) to support MSMEs, but Dr. Samuel Tiriongo noted the scheme’s limitations:

He emphasized that strict prudential rules meant there was no capital relief for banks, even when guarantees were issued, which discouraged lending to underserved segments like smallholder farmers.

Transition to a Private Credit Guarantee Company (2024–2025)

Dr. Samuel Tiriongo revealed plans for a private sector-led credit guarantee company that aims to address these bottlenecks.

Key features include:

• Broader risk appetite beyond “good” MSMEs

• Improved claims management and operational independence

• KES 10 billion capitalization target, with government as a minority shareholder

• Expected registration between June and August 2025

Ring-Fenced Agricultural Credit Guarantee Scheme (2023–2024)

He also outlined the rollout of a dedicated agriculture credit guarantee scheme, built within the CGS framework, specifically targeting agribusinesses.

This scheme includes:

• Technical assistance for financial institutions and borrowers

• Rural investment facilitation

• Integration with green financing instruments

Agricultural Development Policy (2021): A Structural Reboot

The Agricultural Development Policy 2021 was another milestone referenced by Dr. Samuel Tiriongo, aimed at harmonizing previously fragmented policy interventions.

Its pillars include:

• Productivity and food security

• Rain-fed dependency reduction

• Diversification and value addition

• ESG principles and private sector engagement

National Financial Inclusion Strategy (2025 Draft)

Looking forward, Dr. Samuel Tiriongo discussed how agriculture is now a central focus in the upcoming National Financial Inclusion Strategy (2025 draft), built around four key metrics: access, usage, quality, and impact.

He cited specific country models:

• Korea: Cooperative federations offering bundled agri-services

• Egypt: Agricultural banks supporting value chains

• India: Infrastructure finance, post-harvest support, and 3% interest loans

• Brazil and Nigeria: Green finance, rebates, and machinery support

Emerging Models of Financing Agriculture

In closing, Dr. Samuel Tiriongo highlighted three innovative models:

• Blended finance: Risk-sharing between public and private actors

• Interest rate rebates: Seen in India and Nigeria

• Dedicated institutions: Offering end-to-end value chain services including credit, insurance, logistics, and R&D