Kisumu, Equity launch Sh100m E-Voucher subsidy programme

Chris Mahandara-KNA

The Kisumu County Government has signed a Memorandum of Understanding (MoU) with Equity Bank to roll out a Sh100 million digitized farm input subsidy programme aimed at transforming agriculture across the region.

 Speaking during the signing ceremony in his office, Kisumu Governor Prof Anyang’ Nyong’o, said the partnership is a critical step towards enhancing food security and economic empowerment in the county. 

Through the e-voucher system, farmers, he said, will now access subsidized, certified agricultural inputs more efficiently and transparently.

“This collaboration with Equity Bank aligns perfectly with our strategic plan to enhance agricultural productivity and improve the livelihoods of our farmers,” Nyong’o said. 

The high cost of inputs, he said, remains a major impediment to food production in the area, adding that the initiative would significantly reduce the costs and ensure access to high-quality seeds and other inputs.

He said the programme will cover all 35 wards in the county, with the Department of Agriculture spearheading the registration and verification of eligible farmers. 

The digital platform will allow registered farmers to co-pay a fraction of the total input cost, after which the county government will automatically top up the balance through Equity Bank’s e-voucher system.

Once the co-payment is complete, the full input package amount will be deposited into a secure, locked e-voucher account linked to each farmer. 

Equity Bank Managing Director (MD) Moses Nyabanda said the move reaffirmed the bank’s commitment to food security and financial inclusion.

“Agriculture is central to Kenya’s economic growth. Through this digital platform, farmers will gain access to quality inputs and financial services, including the opportunity to open bank accounts and build credible financial histories,” he said.

Nyabanda added that the programme will not only empower farmers to expand their agribusinesses but also stimulate economic activity across the agricultural value chain, strengthening rural enterprises in the process.

"These funds can only be redeemed at prequalified agro-dealer outlets located within the farmers’ local shopping centers, ensuring convenience in access to high quality inputs," he said.

The Kisumu initiative, he said, was the first of its kind in the country and aligns with Equity Group’s broader strategy under its Africa Recovery and Resilience Plan. 

"The bank aims to grow its food and agriculture portfolio to contribute at least 30 per cent of its balance sheet, a reflection of its commitment to transforming livelihoods through inclusive financial services," he said.

The Kisumu model, he added, would be scaled up to cover other counties and support the government’s drive to digitise agricultural subsidy programmes and drive economic empowerment through technology.