Michael is aged 42 and married with 2 children aged 23 and 18, both still schooling. He has been in mixed farming for 20 years and currently runs his farm with the help of one farmhand. He produces coffee, tea, bananas and milk, which he sells within the local markets.
Michael has requested a loan of 70,000 KES from Juhudi Kilimo to help him buy a chuff cutter, which he says will help ease the feeding and reduce the waste on dairy feeds. He will also add another dairy cow to help him enjoy the economies of scale. He adds that the two acquisitions will definitely boost his farming income.
He laments the difficulties encountered in accessing capital and the high interest rate charged by financial institutions, which add to the challenge posed by insufficient rains and animal diseases.
To facilitate a partnership between Kiva and Juhudi Kilimo, K-Rep Group (Juhudi Kilimo’s 100% owner) has guaranteed Kiva funds in the event of institutional default. Lenders should be aware that the risk of borrower default remains borne by the lender.
About Juhudi Kilimo:
Juhudi Kilimo is a for-profit social enterprise working with small-holder farmers in Kenya to finance purchases of dairy cows, chickens, agricultural equipment, and other assets that create immediate cash flow. Many of the assets are insured to prevent devastating business losses, and targeted technical assistance is provided to farmers, from agricultural training to basic book keeping and local market research.