Image Source: ALIN
Bob Aston
Access to financial services is about to provide an opportunity for Kairiri Forest Users and Conservation Community Based Organisation (CBO) in Timau area of Meru County to deal with crop failure. Most of the members had contemplated quitting farming this year after the crop failure.
Sokopepe has been supporting the CBO to increase productivity and profitability of its members. This season, Sokopepe linked them to a micro finance institution to enable them to receive credit.
Linking the CBO to Times U Sacco Society Ltd has made the members to be among the few-banked farmers in the Country. The Sacco has a Kilimo Bora Loan, which is ideal for farmers due to low interest charged. For close to 5 weeks now the Sacco has been building their financial literacy and capability.
Already 30 members of the group have each paid a Ksh 200 for registration and are now saving Ksh 200 per week. Soon they will be able to receive Kilimo Bora Loan. The farmers can borrow up to 5 times the amount saved.
The Kilimo Bora loan attracts a 7.5 percent interest rate. The repayment is after four months when the farmers have harvested. The 74 member CBO are now planning to cultivate their combined 30-acre farm.
Mr. Bernard Mureithi, a Production Information Agent (PIA) at Sokopepe said that farm Records Management Information System (FARMIS) help financial institutions to know whether farmers are capable of managing risks.
“The farmers are able to track all their agribusiness enterprises and expenses incurred. This will ensure effective use of Kilimo Bora loans,” said Mr. Mureithi.