Paul lives in the Muranga area of Kenya, which produces coffee for export. He has four children and has been farming for five years. His primary income sources are milk, eggs, tea, and crops.
He stated that what is most enjoyable about farming is the income which enables him to cater to the family's needs. He says his biggest challenge is lack of market for the products. One of the animals in the farm is named Sophia.
Paul was asked why he chose Juhudi Kilimo for this loan, to which he replied, "Because the loan terms are favourable in terms of interest." This client was also asked what was learned during Juhudi's required microfinance training session. He responded, "Microfinance is for small scale enterprises."
His highest monthly expense is family expenses. When asked how the loan would benefit his family, Paul replied, "I will be able to pay school fees for my children."
As part of Juhudi's loan appraisal process, each borrower's assets are evaluated. Paul owns a cow and poultry but does not own a pig, pump, bicycle, motorcycle, or automobile. Juhudi Kilimo also tries to measure any change in living standards based on this loan. This borrower currently has mosquito netting in the household but does not have electricity, solar power, running water, sewing machine, TV, or DVD.
Note: To create this loan profile, Juhudi Kilimo used a mobile device to gather information in the field and send the data to a central online repository, thus reducing paper use, making the process more efficient and keeping costs down.
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.