USAID extends Sh940m loan to Musoni for small-scale farmers
By Rolex Owino
USAID has recently signed a Sh940 million loan portfolio guarantee agreement with Musoni Microfinance.
This risk mitigation agreement will enable Musoni Microfinance to develop and roll out innovative financial loan products to increase access to credit within Kenya’s agricultural sector, especially within – cereals, dairy, livestock and horticulture value chains.
Small-scale farmers, individuals, associations, cooperatives and micro, small and medium enterprises in Kenya will be the key beneficiaries of this guarantee.
Musono Chief Executive, Stanley Munyao, says the facility will help the microfinance institution to provide smallholder farmers with quality inputs, market linkages, infrastructure and other auxiliary services.
The guarantee will also help Musoni to scale its digital lending platform – to boost agriculture financing, improve smallholder farmers’ livelihoods and increase food security.
“Under its Kilimo Booster product, Musoni has been able to expand into rural areas and offer tailored products to smallholder farmers through a lean operational set-up and an innovative credit scoring model,” said Munyao.
The agreement will increase lending approaches for marginalised smallholder farmers and agricultural micro-enterprises.
“The agreement we are launching today is one of the many ways that the U.S. government partners with the private sector through agriculture in order to assist Kenya on its journey to self-reliance,” said USAID Kenya and East Africa Investment Team Lead, Brook Adam.
Source: African Strategic-Ventures (ASV) & Capitalfm.