African Governments urged to allow banks to use digital technology for cheap agri loans

A pro-rural credit lobby has challenged banks to provide cheap loans to Kenyan farmers in order to enhance food production.

The African Rural and Agricultural Credit Association chairman, Millison Narh, said governments must allow banks to use digital technology to deliver cheap credit to smallholder farming communities.

He also said governments need to identify high yielding crops from various regions and guide farmers when offering credit for purchase of farm inputs.

"Seed production and distribution could go a long way in enhancing food production. Governments also need to invest in dam construction to enable farmers abandon reliance on rain-fed agriculture," he said.

He was speaking in Nairobi Tuesday at a forum that attracted participants from 15 African countries, where it was heard that commercialised farming was the best way to attract young people thereby helping increase food production.

The association advocates for friendly policies that enhance credit access to rural-based peasant farmers.

The event hailed Kenya's digital and mobile developments which had increased access to financial services for a large number of Kenyans.

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