Policy Brief No. 03 of 2020-2021 on Women's Access to Agricultural Finance in Kenya

Abstract

Agriculture plays a critical role in the Kenyan economy. The sector contributes approximately 34.2 per cent of the country’s Gross Domestic Product and employs over 60 per cent of the population of which 70 per cent are living in rural areas. The sector is also one of the key drivers of the 10 per cent annual economic growth envisaged in the Kenya Vision 2030. The blueprint envisions an innovative, commercially oriented and modern agricultural sector. Limited access to affordable agricultural finance has been identified as one of the major challenges leading to low agricultural productivity in the country (MTP III). Other constraints include limited access to appropriate and affordable technology, limited access to markets, lack of access to quality inputs, climate change, and poor infrastructure. The situation is worse for women despite the significant role they play in agriculture. According to the International Labour Organization, ILOSTAT database (2019), women account for approximately 75 per cent of the agricultural labour force in Kenya compared to 51 per cent for Kenyan men. In addition, women manage approximately 40 per cent of the small-scale farms and therefore play a major role in storage and preparation of food...