Co-operative Bank of Kenya has entered a strategic partnership with the Kenya National Chamber of Commerce and Industry. The two-year initiative focuses on Agricultural Export Financing and Trade Facilitation. The programme targets farmers, cooperatives, and micro, small and medium enterprises that have long struggled to access export markets.
The partnership aims to bridge the persistent financing gap that has constrained agricultural exporters. Kenyan farmers have struggled to access lucrative international markets despite growing global demand for their produce. The programme combines structured pre-shipment financing with market access support to create a comprehensive export solution.
Exporters can now procure, process, certify, package, and ship produce before receiving payment from overseas buyers. This directly addresses the working capital constraints that have historically undermined Kenya's export competitiveness. Many smallholder farmers have lost lucrative contracts simply because they could not finance production upfront.
Agriculture contributes approximately 33 per cent of Kenya's Gross Domestic Product, according to official statistics. The sector also employs more than 40 per cent of the national population. About 70 per cent of rural households depend on agriculture for their livelihoods. These figures come from the Kenya National Bureau of Statistics Economic Survey 2025.
Limited access to affordable trade finance has consistently locked out smallholder farmers from international markets. Export-oriented MSMEs have cited financing as the primary obstacle to fulfilling large export orders.
Aggregating produce from multiple smallholders and competing in global value chains remains difficult without adequate capital. The partnership directly responds to these structural barriers that have persisted for decades.
Financial solutions are now integrated with the commercial linkages necessary to scale export volumes. Richard Ndungu is the National Chairperson of the Kenya-China Trade and Investment Initiative. He spoke during the signing ceremony for the new partnership. "The challenge of accessible and structured financing was raised consistently," said Ndungu.
Exporters had secured international buyers but lacked the capital to execute their contracts. The Chamber's Export Committee conducted extensive consultations before developing this programme.
New markets have since been opened across Asia for Kenyan agricultural products. Priority export products with strong potential have been identified for targeted support.
Business linkages between Kenyan exporters and international buyers have already been facilitated. Financing and market access are now positioned as complementary pillars of sustainable export growth.
The programme will initially support exports of coffee, tea, and avocados. Macadamia, herbs, chillies, and other high-potential products are also included in the rollout.
Co-operative Bank will provide pre-shipment financing backed by verified Letters of Credit from international buyers. Structured trade finance services include foreign exchange settlement and payment facilitation for exporters.
KNCCI will source and verify international buyers participating in the programme. The Chamber will also allocate export orders to eligible members based on capacity and capability.
The bank will finance transactions and oversee the settlement of export proceeds. This creates an integrated model that substantially reduces financial risks for all parties involved. International buyers gain confidence through the structured financing arrangement and bank-backed guarantees. KNCCI President Dr Erick Rutto said improving access to finance remains critical for export growth.
Unlocking Kenya's export potential requires better funding for farmers and MSMEs across the value chain. The partnership aligns with broader efforts to strengthen the MSME sector. MSMEs continue to drive Kenya's economy and provide the majority of employment opportunities. The initiative builds on the existing AGF Dairy Climate Smart Programme operating in the sector.
That programme has already disbursed more than Ksh 533 million to deserving beneficiaries. A financing pipeline exceeding Ksh 326 million is currently in place for future disbursements.
Plans are underway to scale the initiative beyond Ksh 5 billion in total financing. Agriculture, the blue economy, and other productive sectors will ultimately benefit from this expansion.
Financial literacy programmes will be expanded under the new partnership agreement. Export readiness training and business development support are also planned for participating members.
These address capacity gaps that limit participation in sophisticated international markets. Ndungu challenged government agencies to speed up export certification processes without delay.
Requirements by the General Administration of Customs of China remain a particular concern for exporters. Delays in certification continue to undermine Kenya's competitiveness in international trade.
The Agriculture and Food Authority should fast-track approvals to avoid losing market opportunities. Kenya seeks to diversify export destinations beyond traditional European and American markets.
Domestic export earnings rose to approximately Ksh 932 billion in 2024, according to official data. Strong performance in agricultural exports, particularly horticultural produce, drove this growth.
Both institutions have reaffirmed their commitment to joint capacity building and stakeholder engagement. Regular programme reviews are planned to assess progress and address emerging challenges.
The competitiveness of Kenyan businesses should enhance substantially through this collaboration. Increased exports and improved incomes for farmers remain the ultimate goals of the partnership.
The financing framework demonstrates what structured collaboration between institutions can achieve. Private sector and industry bodies can solve practical constraints that have long held back the sector.
Kenya's agricultural export potential has been constrained by funding gaps for too long. This partnership offers a practical and sustainable path forward for the sector. Farmers, cooperatives, and MSMEs stand to gain significantly from the new arrangement.
