African banks have the capacity to develop tailored financial products by innovating beyond traditional loan structures and creating flexible, low-interest credit products for small holder farmers.

Agriculture and Livestock Cabinet Secretary Mutahi Kagwe said that with a little effort the banks can create input financing, warehouse receipt systems and value chain financing models.

Speaking Monday during a high-level conference to discuss and share knowledge on enhancing small holder farmers access to financial resources, the CS noted that the biggest hurdles farmers face are limited access to affordable credit due to lack of collateral, credit histories and financial literacy. "Farmers have resulted in relying on high-interest informal lending or inadequate government subsidies, preventing them from accessing essentials like fertilizer, high-yielding seeds, and modern agricultural inputs," he said.

Kagwe added that climate change has further exacerbated these challenges, keeping millions trapped in poverty and limiting Africa's agricultural potential.