In Kenya, agricultural funds are primarily allocated to meet immediate planting season needs, as farmers face increasing expenses for necessary commodities.
According to the March 2026 Agriculture Sector Survey by the Central Bank of Kenya, an impressive 88 percent of borrowers allocate their loans to farming essentials such as fertilizers, seeds, and pesticides. This significant dependency on borrowed funds for fundamental supplies demonstrates how susceptible the agricultural sector is to international commodity price variations.
In addition to cultivation materials, human resources constitute the second major expenditure in agricultural financing.
Approximately 72 percent of farmers indicate they use loan funds for workforce expenses, showing that agriculture continues to be labor-intensive and reliant on temporary employment to sustain production levels.
Although most agricultural credit is dedicated to ongoing operations and maintenance, a minority of farmers are striving for enhanced long-term viability.
About 32 percent of participants are utilizing borrowed capital to diversify their agricultural operations, while 29 percent are concentrating on increasing their farm acreage or purchasing additional land.