The National Assembly has opened a public consultation on the Crops Laws (Amendment) Bill, 2026, which proposes significant reforms to Kenya's agricultural financing system.
The bill is currently under review by the Departmental Committee on Agriculture and Livestock, which is gathering input from stakeholders before the legislation advances.
Key Changes Proposed
- The bill seeks to centralise agricultural lending by transferring lending responsibilities from various sector-specific bodies to the Kenya Agribusiness Development Corporation (KADCO).
- It also proposes amendments to the Kenya Agricultural and Livestock Research Act and the Tea Act to align these laws with the new financing framework.
Expanded Role for KADCO
Under the proposed law, KADCO would become the primary institution managing agricultural loans nationwide. It is further proposed that a portion of the Sugar Development Levy be allocated to KADCO to support its expanded lending mandate.
This restructuring aims to create a streamlined and efficient credit system for farmers and agribusinesses to access funding for production and value addition.
Potential Impact on Farmers
If effectively implemented, the reforms could enhance access to agricultural finance, reduce overlaps among current lending institutions, and boost agricultural productivity.
The success of these changes will depend on adequate funding, management capacity at KADCO, and the practical rollout of the new lending mechanisms.
Importance of Public Participation
The parliamentary committee encourages farmers, agribusinesses, financial institutions, and other interested parties to review the bill and submit their views. This engagement allows stakeholders to influence the final legislation by highlighting concerns or supporting beneficial provisions.
The bill text is accessible on the Parliament's website to facilitate informed contributions.
These reforms form part of a broader effort to strengthen Kenya's agricultural sector and improve farmers' access to affordable financing.
