Building Resilience and Bridging the Financing Gap for Smallholder Farmers in Kenya

Smallholder farmers produce the bulk of Kenya’s food, yet many remain exposed to shocks that can wipe out an entire season’s work. Limited access to formal finance, financial education, and risk protection leaves these farmers highly vulnerable to drought, excessive rains, and other climate challenges.

Why This Matters

📌 Approximately 7.5 million smallholder farmers across Kenya drive most of the country’s agricultural output.
📌 Agriculture contributes around 25% of Kenya’s GDP.
📌 Nearly 98% of agricultural production is rain-fed, making farmers highly susceptible to climate shocks.
📌 Only about one-third of smallholder households have access to formal credit.
📌 Uptake of agricultural insurance is very low (below 1%), leaving farmers with minimal protection when shocks occur.

These challenges highlight the urgent need for inclusive, tailored financing solutions and risk management tools that empower smallholder farmers to build resilience and secure sustainable livelihoods.