How the RK-FINFA instruments support the agriculture and MSME economy pillars of BETA.
The instruments enhance financial access that supports BETA’s agriculture and MSME economy pillars. This is achieved through improving agricultural production and productivity, creation of equitable employment opportunities, innovative and resilient production systems, and increased incomes for smallholders, poor and marginalised rural households, women and youth.
Specifically, through the Green Financing Facility (GFF), the project advances Kenya’s sustainable environment and climate change resilience agenda by providing smallholder farmers with innovative financial resources and incentives to support environmentally responsible investments. This not only mitigates the adverse impacts of climate change but also stimulates economic growth, creates green jobs, and enhances the country’s resilience to environmental challenges.
In addition, the Rural Credit Guarantee Scheme catalyses BETA’s agenda of promoting Kenya’s youth empowerment and development by unlocking opportunities for the youth in rural areas, providing financial backing and mitigating the risks associated with lending. The guarantee scheme encourages financial institutions to extend credit to young entrepreneurs and aspiring business owners. This, in turn, enables Kenyan youth to establish and expand their enterprises, fostering economic growth at the grassroots level.