Zachary is a farmer who lives in the Kisii area of Kenya, which is a bananas and sugar cane growing region. He has three children and has been doing this work for five years. His primary income sources are milk, eggs, crops, and personal business.
He stated what is most enjoyable about farming: "Poultry, tea, dairy farming because I get food and get income out of my sales." His biggest challenge is "Lack of enough income to cater for my needs and to better my farming." Animals on the farm have been given the names of "Nyabarati."
Zachary was asked why he chose Juhudi Kilimo for this loan, to which he replied: "Lower interest." This client was also asked what was learned during Juhudi's required microfinance training session, and he said, "How to save and how to manage loans."
His highest monthly expense is family expenses. When asked how this loan would benefit his family, Zachary replied, "Improve our lives."
As part of Juhudi's loan appraisal process, each borrower's assets are evaluated. Zachary 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.
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.