Members of Parliament are seeking public feedback on the Crops Laws (Amendment) Bill, 2026, which proposes a significant restructuring of agricultural lending in Kenya.
The bill, currently reviewed by the Departmental Committee on Agriculture and Livestock, aims to centralize agricultural credit functions under the Kenya Agribusiness Development Corporation (KADCO). This move is intended to streamline financing for farmers and agribusinesses by reducing duplication across sector-specific institutions.
Key Provisions of the Bill
- Transfer of agricultural lending responsibilities from various institutions to KADCO.
- Amendments to the Kenya Agricultural and Livestock Research Act and the Tea Act to align with the new lending framework.
- Allocation of a portion of the Sugar Development Levy to support KADCO's lending activities.
The reforms are designed to enhance access to affordable credit, boost agricultural productivity, and optimize public resource use. However, the success of this centralized system hinges on effective funding, management, and implementation of KADCO’s expanded mandate.
Parliament encourages stakeholders—including farmers, agricultural bodies, and financial institutions—to review the bill and submit their views. The legislation is accessible on the official Parliament website, where the public can also provide memoranda.
This consultation process underscores Kenya’s broader efforts to strengthen the agricultural sector by improving financing mechanisms.
