- KNCCI and Co-operative Bank have expanded trade finance for farmers, cooperatives and MSMEs.
- The partnership will support export financing, market access and business growth.
- Plans are underway to scale financing to Ksh5 billion.
Limited access to affordable trade finance continues to prevent thousands of Kenyan farmers, cooperatives and micro, small and medium enterprises (MSMEs) from tapping into high value international markets, despite rising global demand for Kenyan agricultural products.
In an effort to bridge the financing gap, the Kenya National Chamber of Commerce and Industry (KNCCI) and Co-operative Bank of Kenya have strengthened their partnership to expand access to trade finance and create more opportunities for farmers, cooperatives and MSMEs to participate in export markets.
The partnership seeks to address financial barriers that have continued to limit the ability of small businesses and agricultural producers to meet international market requirements, expand their operations and take advantage of growing export opportunities.
The initiative comes as agriculture remains a key pillar of Kenya’s economy. According to the Kenya National Bureau of Statistics (KNBS) Economic Survey 2025, the sector contributes about 33 per cent of the country’s Gross Domestic Product (GDP) and provides employment to more than 40 per cent of the population, while supporting about 70 per cent of rural households.
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Improved access to affordable trade finance is therefore expected to strengthen agricultural value chains, support business expansion and enable more Kenyan producers to compete effectively in international markets. The financing initiative aligns with efforts to strengthen Kenya’s MSME sector, which continues to create employment opportunities and economic growth.
Speaking during the meeting between KNCCI and Co-operative Bank to review implementation of their memorandum of understanding (MoU), KNCCI president, Erick Rutto, said the access to finance remains one of the biggest obstacles to growing Kenya’s export sector.
“Access to finance remains one of the biggest constraints facing our farmers, cooperatives and MSMEs. Through this partnership with Co-operative Bank, we are developing practical financing solutions that will enable businesses to trade more competitively, increase exports, create jobs and improve incomes across the agricultural value chain,” said Dr Rutto.
Richard Ndungu, national chairperson of the Kenya-China (Asia) Trade and Investment Initiative, said the partnership was established after the Chamber identified a recurring challenge among exporters who had secured international buyers but lacked sufficient working capital to fulfil their orders.
“Today marks an important milestone in our journey to strengthen Kenya’s export sector. As we engage exporters and buyers, one challenge was raised consistently — the lack of accessible and structured financing to enable businesses to fulfil export orders, aggregate produce and compete effectively in international markets,” said Ndungu.
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Ndungu said financing and market access must go hand in hand to sustainably grow Kenya’s exports.
“The committee has gone beyond developing a financing solution. It has actively opened new markets across Asia, identified products with strong export potential and connected Kenyan businesses with international buyers. Financing and market access must go hand in hand if we are to grow our exports sustainably,” he said.
The partners reviewed the AGF Dairy Climate Smart Programme, which has disbursed over Ksh 533 million, with another Ksh 326 million in the pipeline. Plans are underway to expand financing to Ksh 5 billion across agriculture, the blue economy and other productive sectors.
The KNCCI, Co-operative Bank partnership, seeks to expand access to pre-shipment financing, trade solutions, export market linkages, financial literacy, export readiness programmes and business development support for farmers, cooperatives, exporters and MSMEs.
By Bernard Magada
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