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.

Features

Farmer
  • 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.

Agro dealer
  • 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.

Other features

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 %

Repayment period
  • Farmer – 12 months
  • Agro dealer – 12 months
Repayment Interval
  • Farmer – seasonal
  • Agro dealer – Monthly.