Esther has been farming for the last 10 years on the outskirts of Litein town in Rift Valley, Kenya. She has been producing milk, maize, beans and pineapples, all of which she sells to the local market. Her primary challenge in farming has been lack of enough animal feed that affects her milk production, and lack of reliable casual labourers. She is also employed and earns extra income from her retail shop and rental houses in the same area.
Esther is 50 years old. She is married and has three children between the ages of 11 and 19. All her children are attending school.
She has requested this loan from Juhudi Kilimo for 45,000 Kenyan shillings to purchase and insure a dairy cow. The extra income from this loan will improve the standard of living of the family since there will be more disposable income from the sale of milk. In future, she would like to increase the size of her land and plant more dairy feed. She also plans to increase her rental houses and the number of her dairy cows.
Esther is part of a 5 person solidarity group -- when one receives a loan, the others guarantee it. As it is her rotation, this loan is for Esther's business alone. She says, however, that group lending is sometimes discouraging because not all members are reliable. She hopes Juhudi will consider giving loans without requiring solidarity groups in future."
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.