Phanuel lives in the Kitale area of Kenya, which is an area with high poultry production and consumption. He has three children and has been a farmer for eight years. His primary income sources are milk, eggs, crops, transportation services, and personal business.
He stated what is most enjoyable about farming: 'Feeding dairy cows and milking them.' His biggest business challenge is: 'Animal diseases and shortage of animal pasture during dry seasons.' Animals on the farm have been given the names of Maua and Lelmet.
Phanuel was asked why he chose Juhudi Kilimo for this loan, to which he replied: 'Because Juhudi Kilimo finances farmers with assets.' This client was also asked what was learned during Juhudi's required microfinance training session: 'They are short-term loans.'
His highest monthly expense is school fees. When asked how this loan will benefit his family, Phanuel replied: 'Milk from the cow will help me feed my family, and the milk that I will sell will help to educate my children.'
As part of Juhudi's loan appraisal process, each borrower's assets are evaluated. Phanuel owns the following: cow, poultry, motorcycle, but he does not own a pig, pump, bicycle, or automobile. Juhudi Kilimo also tries to measure any change in living standards based on this loan. This borrower has in the household: mosquito net, but he 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.