Business models for Kenyan agri finance institution

Following a successful strategic plan that Genesis developed for the Agricultural Finance Corporation (AFC), the government’s development financial institution re-engaged Genesis to help with the implementation of its new business model.

The project involved evaluating eight different innovative delivery models for agricultural lending and selecting the four priority models that AFC should focus on first.

The selection considered the expected impact on agricultural finance in Kenya and the capabilities that AFC could acquire most efficiently to execute.

The four models identified were an agricultural credit guarantee scheme; providing wholesale financing to banks, SACCOs/MFIs (Savings and Credit Cooperative Society/micro finance institutions), fintechs and machinery distributors/manufacturers; warehouse receipt financing; and leasing financing.

Following the selection of the priority models, Genesis developed detailed implementation matrices, risk management instruments, stakeholder relationship matrices and investment papers per model. These serve as toolkits for the AFC to put the individual models into operation. The AFC is in the process of implementing the shortlisted models.

FSD Kenya and AGRA were key implementation partners in the project, working closely with AFC and Genesis.