Timothy lives in the Eldoret area of Kenya, which is the training ground for many of Kenya's Olympic runners. His primary income sources are milk, eggs, crops, and personal business. He has no children and has been doing this work for three years.
He stated what is most enjoyable about farming: “It generates income easily. I understand the challenges.” His biggest challenge is “diseases that hinder milk production.” Animals on the farm have been given the names of “Lelmet, Baraka, and Juhudi".
Timothy was asked why he chose Juhudi Kilimo for this loan, to which he replied, “Deals with farmers and loans out finances to generate more income.” This client was also asked what was learned during Juhudi's required micro-finance training session, and replied, “Savings culture is important. Record-keeping is essential. Loan is issued for small-scale farmers.”
His highest monthly expense is farming costs. When asked, “How will this loan benefit (your) family?”, Timothy replied, “Increased income.”
As part of Juhudi's loan appraisal process, each borrower's assets are evaluated. Timothy 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 has in the household a mosquito net, 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.