Alice lives in the Litein area of Kenya. She has six children and has been doing this work for 15 years. Her primary income sources are milk and crops. She stated what is most enjoyable about farming: “Farming” Her biggest challenge is “Insufficient funds.” Animals on the farm have been given the name “Lelkina.” Alice was asked why she chose Juhudi Kilimo for this loan, to which she replied: “Because of grace period.” This client was also asked what was learned during Juhudi's required microfinance training session: “That they also finance assets.” Her highest monthly expense is for farming costs. When asked “How will this loan benefit her family”, Alice replied “In expanding dairy farming in order to increase the benefits.” As part of Juhudi's loan appraisal process, each borrower's assets are evaluated. Alice owns the following: “cow, poultry” but does not own “pig, pump, bicycle, motorcycle, 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 does not have “electricity, solar power, running water, sewing machine, TV, DVD”.
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.