Nairobi, July 5 -- The government plans to strip three agricultural parastatals of their lending powers, and instead consolidate State-backed financing for farmers under a single institution to curb misuse of public funds.

A Bill introduced in the National Assembly by Majority Leader Kimani Ichung'wah proposes to remove lending functions from the Kenya Agricultural and Livestock Research Organisation (Kalro), the Tea Board of Kenya and the Kenya Sugar Board (KSB).

If passed, the Crops Laws (Amendment) Bill, 2026 will channel all agricultural lending through the planned Kenya Agribusiness Development Corporation (KADCO) Limited, which is being created through the merger of the Agricultural Finance Corporation (AFC) and the Commodities Fu...