Family and friends overtake banks in loans to farmers
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John Maina, a farmer from Laikipia West Sub-County, on his cassava farm. More farmers are increasingly bypassing banks and Saccos in favour of family and friends for credit.
Borrowing from family and friends jumped to 42 per cent in January 2026 from 25 per cent in November 2025.
More borrowers favour informal sources despite bank financing policy stimulation.
The structure of borrowing has tilted toward informal and relationship-based sources, highlighting persistent barriers in formal agricultural lending
Kenyan farmers are increasingly bypassing banks and Saccos in favour of family and friends for credit, signalling deepening stress in agricultural financing despite easing interest rates, new Central Bank of Kenya (CBK) survey shows.
Borrowing from family and friends jumped to 42 per cent of sampled farmers in January 2026 from 25 per cent in November 2025, overtaking formal lenders as the dominant source of farm credit even as overall borrowing rose.
