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In tea farming, access to credit is a critical factor in empowering farmers, enabling them to increase productivity, adopt modern agricultural practices, and strengthen rural economies in developing countries.
Smallholder farmers in Kenya remain deprived of much-needed credit despite agriculture being an economic mainstay, findings by CBK,Agriculture Sector Survey,2024 .
More than 25 percent of the sampled farmers reported having obtained loans from various sources in September, July, May, March, and January 2024, with a large share of loans allocated to buying inputs.
The main sources of finance for farmers have continued to be banks, SACCOs, and digital loans. The share of farmers who reported to have borrowed to finance agriculture was much lower in September 2024 relative to July 2024, to alleviate the input cost burden.
In tea farming, access to credit is a critical factor in empowering farmers, enabling them to increase productivity, adopt modern agricultural practices, and strengthen rural economies in developing countries.
Despite its importance, however, many smallholder farmers continue to face significant barriers when seeking financial support. Limited access to nearby financial institutions, high collateral demands, steep lending costs, and rigid policies often make formal credit inaccessible.
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Addressing these barriers is essential to unlocking the full potential of tea farmers and fostering a resilient agricultural sector that benefits local communities and contributes to sustainable development.