Actualizing Rural Finance

Rural Kenya Financial Inclusion Facility (RK-FINFA)

A six-year development project financed jointly by IFAD and the Government of Kenya, improving access to financial services for smallholder farmers and rural enterprises.

BETA 2022–2027

Aligned to the Bottom-up Economic Transformation Agenda

The R-CGS and GFF enhance financial access supporting the agriculture and MSME economy pillars of BETA.

How we align

Climate-smart rural investment

Green Financing Facility

A permanent investment mechanism encouraging small-scale farmers and micro-firms to invest in climate-smart and environmentally friendly activities.

Explore the GFF

US$ 134.05m

Total project cost

190,000

Rural households reached

2022 – 2028

Implementation period

Participating financial institutions

About the facility

Transforming rural and smallholder agriculture

RK-FINFA is a six-year development project financed jointly by the International Fund for Agricultural Development (IFAD) and the Government of Kenya (GoK). It supports the transformation of the rural and smallholder agriculture sector through private sector-led development by improving the access of smallholder farmers and rural micro, small and medium enterprises to appropriate financial services.

The facility contributes to the Bottom-up Economic Transformation Agenda (BETA) 2022–2027 through the Rural Credit Guarantee Scheme and the Green Financing Facility.

Read the background Alignment to BETA

Project goal

Reduce poverty, enhance climate change adaptation and improve livelihoods in rural areas.

Development objective

Increase rural financial inclusion and green investments by agriculture value chain stakeholders.

Target population

66,000 smallholder households and 2,000 rural MSMEs as direct beneficiaries.

Inclusion targets

A minimum of 50% women and 30% youth across all capacity building and financing activities.

What we do

Project components

Technical Support and Innovation Services

Component 1 strengthens PFI capacity for rural outreach and builds MSME and smallholder investment capacity and financial literacy.

Rural Investment Instruments

RK-FINFA operates two rural investment instruments: the Rural Credit Guarantee Scheme (R-CGS) and the Green Financing Facility (GFF).

Enabling Rural Finance Environment and Project Coordination

Component 3 promotes policies and institutional arrangements that support medium and long-term development of rural finance.

Rural Credit Guarantee Scheme (R-CGS)

Risk sharing that promotes rural outreach innovations and catalyses funding from Kenyan mainstream financial institutions into the rural and agriculture sector — KES 2.8 billion invested to leverage KES 11.5 billion in PFI lending.

Explore R-CGS

Green Financing Facility (GFF)

A permanent investment mechanism with start-up capital of KES 2.1 billion that encourages small-scale farmers and micro-firms to invest in climate-smart and environmentally friendly activities.

Explore GFF