Farmers ditch banks, saccos, turn to customers and family for loans

Beans farm

A beans farmer in Sobea, Nakuru County sprays his crop with pesticides to control Aphids and other cereal-feeding pests on October 18, 2025.

Photo credit: Boniface Mwangi | Nation Media Group

Farmers across the country are increasingly seeking financial support directly from their customers, friends, and family members to fund their agricultural activities, bypassing commercial banks, Saccos, and government-backed financial schemes like the Hustler Fund.

According to a latest survey by the Central Bank of Kenya (CBK) for November, many farmers are turning to informal credit sources, pointing to a dramatic shift in borrowing patterns.

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