Agricultural finance and the youth

This publication provides an assessment of the current state of financial inclusion among Kenyan youth, especially those living in rural and financially underserved areas. In particular, the study illustrates the clear linkage between the financial access gap faced nowadays by Kenyan youth and their inability to pursue high value-added entrepreneurial opportunities, chiefly in the agribusiness sector.Kenya is the strongest economy in East Africa, boasting considerable agricultural exports, thriving tourism and a growing manufacturing sector, which together have led to an average annual growth of the real gross domestic product of about 6 percent for the past five years. Nevertheless, Kenya's ongoing economic transformation still faces considerable roadblocks in terms of the state of the labour market, characterized by high levels of under- and unemployment, as well as high job informality, which put enormous pressures on Kenya's political, social and economic stability.Among the recommendations provided by the report are supporting the design of a financial graduation programme, promoting the introduction of savings-led approaches to capital building and credit provision; fostering the development of public-private incubator programmes to invest in and support the development of high-added-value business ideas from young entrepreneurs in agriculture; and addressing the issues of high default levels and design flaws in existing public credit facilities to channel resources more effectively towards the promotion of youth-led entrepreneurship in agriculture