According to the Food and Agriculture Organization (FAO), agriculture directly contributes 26% of Kenya’s Gross Domestic Product (GDP). Through linkages with other sectors (for example, manufacturing), agriculture indirectly contributes 27% of our GDP. Agriculture plays a critical role in the socio-economic development of our country, and this is why the sector was allocated Ksh60 billion in the 2021/2022 budget in a bid to spur its growth.
To a vast extent, households in rural areas are heavily dependent on agriculture as a source of income and food security. FAO estimates that the sector employs 70% of the people residing in rural areas. Traditionally, Kenya’s rural households practiced subsistence farming, growing food crops, and keeping livestock for their own consumption.
With the domestic budgets of the rural households growing exponentially, agriculture has been commercialized. Many farmers are growing crops and keeping livestock as a means of generating income. This practice is known as agribusiness.
To succeed in agribusiness, many progressive farmers work hand in hand with Savings and Credit Co-operative Societies (Saccos). A good example is Mentor Sacco that has successfully financed many members to buy land and establish farming enterprises in dairy, poultry, and horticulture.
The extra income streams have enabled these members to grow their deposits and access big loans for their development. Since they have a stable income base, it has been much easier for them to service their loans. They also earn high dividends from their deposits. If you plan to venture into a project that will make you extra income (over and above your salary), agribusiness is a sure bet. You can start on a small scale depending on your ability, but you can scale it up as your enterprise generates more income. Talk to Mentor Sacco; let’s walk with you on that journey so that it can be successful.
www.mentorsacco.co.ke
