Impact investor Oikocredit has approved a five-year loan of US$ 5 million (Ksh 750 million) to Juhudi Kilimo, a company that offers loans for Kenyan farmers to finance agricultural assets.
According to a statement published on Tuesday, January 9, the loan will boost Juhudi Kilimo’s efforts to empower farmers and thereby uplifting the lives of Kenyans especially in the underserved communities.
Speaking after the deal, Bernard Kivava- the institution’s CEO welcomed the infusion noting that the funds will support its upcoming plans.
According to him, the funds will specifically help in its planned expansion and integration of new technology to help it reach more customers.
The microfinance institution is also looking to establish new service centers and branches across the country as part of its expansion strategy.
“This long-term funding from Oikocredit will support our strategic plan to offer affordable and accessible medium-term financing to our customers,” the CEO said.
“The agreement with Oikocredit aligns with Juhudi Kilimo’s commitment to providing customized loans and enhancing financial independence for individuals in underserved communities.”
On his part, Michael Kariah, Oikocredit’s Investment Officer for East and Southern Africa expressed the company’s pleasure in its newly formed partnership with the financier.
According to him, the investment aligns with the company’s commitment of supporting local communities and improving food security.
“We are pleased to be working with Juhudi Kilimo as one of the newest long-term partners,” said Michael Kariah.
“We look forward to working closely with Juhudi Kilimo to make a lasting impact in these areas.”
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About Juhudi Kilimo
Founded in 2004, Juhudi Kilimo has been dedicated to empowering farmers by providing them with loans to purchase farm equipment and machinery.
It started as an agriculture microlending initiative under the K-Rep Development Agency and by 2009.
By 2009, it had developed into an independent for-profit social enterprise with the mission to improve the livelihoods of rural smallholder farmers and micro entrepreneurs by providing wealth creating financial solutions.
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So far, Juhudi has a loan book of KES 2.5 billion, with more than 84 per cent dedicated to the agricultural sector.
In addition, the institution was recognized by Starbirands Awards East Africa as the top microfinance provider of agricultural financing in Kenya.
On its part, Oikocredit is a social impact investor which provides solutions towards improving agriculture and renewable energy.
