Reasons why farmers apply for loans in Kenya

Kenyan farmers primarily seek loans to purchase farm inputs such as fertiliser, seeds, and pesticides, with 83% of respondents citing this as their main reason in the July 2025 survey.

This is a slight decrease from the 84% recorded in May 2025.

Labour costs also represent a major need for loans, with 59% of farmers in July 2025 using borrowed funds for this purpose, a slight increase from 57% in May.

The next most common reason for borrowing is to hire farm equipment, accounting for 45% of responses in July, while buying equipment is less common at 31%.

Farmers also take loans to expand and diversify their activities, accounting for 34% and 41% of responses, respectively.