Data from the Central Bank of Kenya's September 2026 Agriculture Sector Survey shows that most farmers use agricultural loans to purchase essential inputs, including fertiliser, seeds and pesticides.
This was cited by 91 per cent of respondents, making it the most common use of borrowed funds.
Labour costs ranked second, with 60 per cent of farmers using loans to pay workers. Meanwhile, 36 per cent channelled the funds into diversifying their agricultural activities.
Mechanisation and equipment purchases were also significant uses of credit.
About 32 per cent of respondents used loans to hire or lease machinery, such as tractors, while 29 per cent invested in buying farm equipment and machinery.
Expanding farm operations or acquiring additional land was cited by 24 per cent of borrowers, highlighting the role of agricultural credit in supporting farm expansion.
