Vuna Kilimo Biashara
To enable individual farmer, associations/group/co-operatives to access farm inputs and agro dealers access working capital under the Ministry of agriculture credit guarantee scheme.
NB. Farmers should be engaged in production of cereals and horticulture.
- Applicant must be engaged in commercial crop production at primary level
- Individual farmers, members of a Farmers’ Association or Group.
- Applicant must ideally be farming on own or leased land, with the remaining lease period covering at least the next two crop seasons.
- Applicant must have been in crop production for a minimum 2 crop seasons, immediately preceding the current one.
- Applicant must have proof of farm enterprise cash flows for the last 2 seasons and projections for the current season
- Applicants must provide proof of viable market
- Applicant must be account holder or willing to open and operate account with Co-operative Bank where all farming sales proceeds will be channelled
- Maximum debt ratio of 60% of Gross farming income as seen in comparison of production and earnings trend with account turnovers.
- Applicant must demonstrate ability to meet farming overheads for the season to be financed
- Acceptable tangible security. In the case of chattels forced sale values cover minimum of 135% of 90% loan.
- Chattels alone as security are acceptable for amounts up to Kshs. 300,000
- For amounts above Kshs. 300,000 one of the chattels must be a vehicle which is not older than 10 years in the absence of tangible security
- Insurance over death and/or permanent disability with minimum sum assured of loan amount with the bank’s interest noted.
- Maximum debt ratio of 50% of EBITDA or net income ( very small businesses)
- Minimum period in business of 2 years
- Agro dealers must have agreed to undergo business management skills training for certification by AGMARK (Agriculture marketing trust) and accreditation by the ministry of Agribusiness where possible.
- Agro dealers must have certificates/license from KEPHIS, PCPB and comply with other statutory requirements
- Agro dealers must stock certified products.
Loan amounts –
- farmers- 10,000 to 300,000
- Agro dealer- 10,000 to 1,000,000
Interest rate – 12% Application fee – 1%
Appraisal fee – 1 %
- Farmer – 12 months
- Agro dealer – 12 months
- Farmer – seasonal
- Agro dealer – Monthly.