Maziwa Plus Loan

To enable Dairy groups/ associations, societies, individuals and dairy companies access loans for dairy production and value addition equipment including buying additional cows and chilling equipment.

Features
  • Can borrow for joint activities, on-lending to members or for working capital purposes
  • Can borrow up to Kshs 10 million
  • For Groups, they must be handling at least 500 litres per day
  • Must retain at least 50% of the proceeds after loan deductions
  • Tri-partite agreements where applicable or letters of undertaking from a reputable milk buyers or aggregators like co-operative societies and must have a current contract
  • Groups must have been in existence for at least 2 years
  • Companies must have been in existence for at least 12 months
  • Must provide security, at least 30% in tangible form
  • Willingness to channel milk proceeds through the bank

Other features
  • Maximum tenor: 60 months
  • Interest charged at Base + 2% p.a. on reducing balance
  • Appraisal fee of 1%of the loan amount
  • Annual review fee of 1% of the loan balance whose term exceeds 12 months.
  • Collateral includes charge over movable/fixed assets of the group, landed property and guarantees. At least 30% must be tangible
  • Personal Guarantee by the group officials is mandatory
  • Group assets must be secured in the name of trustees (officials) with provisions on succession clearly spelt out in the group constitution