Stanley lives in the Litein area of Kenya. He has six children and for the past four years he has been making a living by producing milk, eggs and crops on his farm.
He says that the most enjoyable thing about farming is feeding the cows and he has given his animals names such as Tilito, Samoi and Chesitien. The biggest challenge he faces is price fluctuations, while his highest monthly expenses are his children's school fees.
Stanley was asked why he chose Juhudi Kilimo for this loan, to which he replied: 'low interest rates.' During Juhudi's required micro-finance training session, he said that he learnt about how the organisation helps farmers to buy cows. When asked about how this loan will benefit his family, Stanley replied that his milk production will increase.
As part of Juhudi's loan appraisal process, each borrower's business assets are evaluated. Stanley owns cattle and poultry but he does not own pigs, pumps, or any form of transport. In order to measure any change in living standards due to its loans, Juhudi Kilimo also asks borrowers about their household possessions. In Stanley's household, he has a 'mosquito net, electricity and TV' but does not have such conveniences as solar power, running water, a sewing machine or DVD player.
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.