Global stakeholders are looking forward to convening in Nairobi, Kenya for the Financing Agri-food Systems Sustainably (FINAS) 2025 Conference. The conference, set to take place between May 20-22, will tackle systemic gaps in agricultural financing through data-driven reforms and policy alignment.
A pre-conference workshop underscored the need for a standardized loan classification system to enhance transparency, target funding gaps, and de-risk lending-especially for small holder farmers and SMEs facing interest rates above 20%.
AgriFinancing, GIZ Kenya, and Aceli Africa; all known to be key players in this program, emphasized that granular value chain data and borrower profiling could unlock tailored financial solutions, improve compliance, and redirect capital to underserved sectors.
READ ALSO: Absa Bank Aims to Improve SMEs in South Nyanza Region
Currently, fragmented bank reporting obscures agricultural loan risks and opportunities by classifying them under broad categories. Proposed reforms aim to improve risk assessment, reduce dependence on high-interest loans, and incentivise commercial banks through de-risking mechanisms.
Despite agriculture’s critical role in Kenya’s economy, Agri-SMEs face double the risk and 4-5% lower returns than other sectors, discouraging investment.
FINAS 2025 will also explore policy shifts, youth engagement, and digital tools to scale climate-resilient financing. The conference’s outcomes are expected to shape regional strategies for sustainable agri-food systems, strengthening financial access for the sector.
