What to know about this Lending Partner
Kiva conducts regular, ongoing monitoring of all Lending Partners, but only posts status updates here in response to relevant, major changes at the partner.
Status update — June 15, 2018
Kiva and Asante Foundation have agreed to end their partnership, as the organization is no longer in need of Kiva funding. Asante Foundation has fully paid its outstanding balance to Kiva, and these funds have been distributed to the lenders. Kiva thanks Asante Foundation for its partnership.
Partner description:
Asante Kenya Foundation is a social venture fund that invests financial and managerial support in social business startups in Kenya. The fund was designed to foster self-reliance in poor, rural communities, and has worked extensively with entrepreneurs in Kenya’s south coastal region.
In particular, the foundation works closely with smallholder farmers to help them utilize their land for maximum value with a micro-investment and to improve their financial security.
A unique lending approach:
Asante Kenya Foundation, in partnership with several organizations is piloting a new type of loan for smallholder rural farmers in southern Kenya to grow eucalyptus trees. By planting trees, Asante Kenya Foundation eases market pressure on indigenous forests while improving the degraded land on which farmers depend.
The loans will be in-kind, consisting of training, seedlings, fertilizer, and access to tractor and bed maker equipment. When the eucalyptus logs, biomass and essential oils are harvested, the foundation provides access to markets for the farmers.
While farmers are waiting for their eucalyptus trees to mature, short-term production of ginger root essential oil and moringa trees ensures a regular source of cash flow. All of a farmer’s ginger root and moringa harvest is bought by Asante Kenya Foundation and then sold to a number of buyers who's commitment is to source raw materials from smallholder farmers to impact rural communities.
Learning is facilitated through demonstration farms and contracts with large international organizations to ensure fair pricing, long-term sustainability and access to new markets.