Mutai on Access to Financial Resources for All
Promoting an efficient, sustainable and widely accessible rural financial systems remains a major development challenge in our country and society. Rural finance is crucial in achieving pro-poor growth and poverty reduction goals. The financial services extended to agricultural and non-agricultural activities in rural areas; these services include money deposit/savings, loans, money transfer, safe deposit and insurance.
Challenging legal and financial environments are constraining growth in agriculture. Lack of working capital and low liquidity limit the farmer’s ability to purchase productivity enhancing inputs like seeds, fertilizers and pesticide. For smallholders, especially, credit is often inaccessible or not affordable. Without appropriate financing, farmers are not only less able to invest in their operations but also much more vulnerable to market volatility and unpredictable weather.
Traditional financial institutions have avoided lending to youth due to their relative inability to comply with the high transaction costs, difficulty in assessing and managing their risk profile, and lack of the required financial documentation as well as collateral.
Rural financial services help the poor and low income households increase their incomes and build the assets that allow them to mitigate risk, smoothen consumption, plan for future, increase food consumption, invest in education and other lifecycle needs. Access to credit and financial services has the potential to make a difference between grinding poverty and economically secure life.
This are just but a few of the challenges that we face in our day to day lives as we try to survive and reach our dreams. Hopefully we can find a solution to address the problem. This may include the launch of more groups, Sacco’s, cooperatives and support from the local government and non-governmental organizations.