Access to finance is critical for driving sustainable growth in rural Kenya, a region grappling with severe environmental challenges such as droughts and floods. In 2024, Kenya experienced its worst floods in a century, following five consecutive failed rainy seasons. Due to these environmental and infrastructural hurdles, many financial institutions perceive the region as high-risk, limiting opportunities for lending and economic expansion.
The Impact for Northern Kenya Fund (INK Fund), a $30-million impact investment fund, addresses these disparities by providing flexible medium and long-term capital financial institutions and SMEs. One key client, Agricultural Finance Corporation (AFC), received $1.25 million in funding to on-lend to Savings and Credit Cooperative Organizations (SACCOs) and agribusinesses in six Kenyan counties.
One of its clients, Imarika SACCO, boasts 40,000 members, primarily public-school teachers who supplement their income through agricultural activities. Loans provided by Imarika allow these members to procure agricultural assets and enhance household food security.
Through these investments, the Fund empowers underserved communities by bridging gaps in financial access and enhancing climate resilience. SACCOs like Imarika create income opportunities for local providers and marketers, while fostering sustainable agricultural production. By supporting these financial institutions, the Fund mitigates risks for private sector operations and catalyze inclusive economic growth, even in the face of climate challenges.
