New Oikocredit loan will enable Juhudi Kilimo to offer affordable and accessible financing to customers in rural and periurban areas
Oikocredit has made more funds available to smallholder farmers and micro enterprises in Kenya’s with the loan of US $5 million (KES 750 million) to microfinance institution Juhudi Kilimo.
The agreement will support the overarching goals of improving livelihoods and contributing towards food security across the African nation, Benard Kivava, Juhudi Kilimo’s CEO, said.
Founded in 2004, Juhudi Kilimo is a for-profit social enterprise. It focuses on financing specific agricultural assets that offer immediate and sustainable income for farmers.
Michael Kariah, Oikocredit’s Investment Officer for East and Southern Africa said, “We are pleased to be working with Juhudi Kilimo as one of our newest long-term partners. Our missions align around supporting local communities, creating jobs and improving food security, among other social issues in the continent.”
Agriculture plays a key role in Kenya’s rural economy. The sector makes up 33 per cent of the country’s gross domestic product (GDP) and contributes another 27 per cent of GDP indirectly through linkages with other sectors, according to the UN’s Food and Agriculture Organisation.
The sector employs more than 40 per cent of the total population and more than 70 per cent of Kenya’s rural people.