Family Bank has received a KSh1.1 billion grant from the eco.business Fund to provide credit to sustainable tea farmers across the country.
The credit facility will see sustainability-certified companies and smallholder tea farmers implement sustainable and climate-smart practices and ensure long-term competitiveness of the agribusiness sector.
Eco.business Fund expects the financing to help the country maintain a stable uptake of Kenyan tea on the international market on account of sustainable production.
On its part, Family Bank is expected to finance sustainable agricultural value chains where financing gaps persist
The investment is further expected to support the fund’s overall mission to promote business and consumption practices that contribute to biodiversity conservation and climate action.
In addition, it is expected to contribute to the Sustainable Development Goals (SDGs) 2 on Zero Hunger, SDG 8 on Decent Work and Economic Growth, and SDG 12 on Responsible Consumption and Production.
We are delighted by this new partnership with Family Bank. Together, we believe we can ramp up support to certified agribusiness in Kenya and ensure we contribute to biodiversity conservation, the sustainable use of natural resources and mitigate climate change and adapt to its impacts.
Dr. Jens Mackensen, Chairperson of the Board of Directors of the eco. business Fund
Kenya is currently the third-largest tea producer in the world and is ranked the largest tea exporting country, representing approximately 22% of the global tea trade.
Meanwhile, tea farmers are set to earn more following the automation of trading at the Mombasa auction amid concerns of price manipulation at the facility that determines growers’ bonuses.
The most-recent tea auction recorded a slight decrease in prices, with a kilogram selling at an average price of $2.36.
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