Oikocredit agrees US$ 5 million loan to Kenya’s Juhudi Kilimo to support smallholder farmers and micro enterprises - Oikocredit International
Summary
09 January 2024, Amersfoort, the Netherlands Impact investor Oikocredit has approved a five-year loan of US$ 5 million (KES 750 million) to Juhudi Kilimo, a non-deposit-taking microfinance institution (MFI) in Kenya, as part of a strategic funding agreement aimed at empowering smallholder farmers and micro enterprises in the countrys rural and periurban areas.The agreement with Oikocredit aligns with Juhudi Kilimos commitment to providing customised loans and enhancing financial independence for individuals in underserved communities.Juhudi Kilimo has an outstanding loan book of KES 2.5 billion, with more than 84 per cent dedicated to the agricultural sector. The institution was recognised by Starbrands Awards East Africa as the top microfinance provider of agricultural financing in Kenya last year.The MFI has a track record of delivering financial inclusion. It serves more than 70,000 clients across 52 branches in 33 Kenyan counties.Bernard Kivava, Juhudi Kilimos CEO, said, This long-term funding from Oikocredit will support our strategic plan to offer affordable and accessible medium-term financing to our customers, especially in rural and periurban areas with the overreaching goals of improving livelihoods and contributing towards food security across the country. Our missions align around supporting local communities, creating jobs and improving food security, among other social issues in the continent. We look forward to working closely with Juhudi Kilimo to make a lasting impact in these areas.Social impact investor and worldwide cooperative Oikocredit has nearly five decades of experience funding organisations active in financial inclusion, agriculture and renewable energy.Oikocredits loans, equity investments and capacity building aim to enable people on low incomes in Africa, Asia and Latin America to improve their living standards sustainably.Oikocredit finances more than 500 partners, with total development financing capital outstanding of 1,037.2 million (at September 2023).