County Government of Laikipia

The Agricultural Sector Development Support Programme II (ASDSP II-Laikipia County) started the 10 ^th the month of 2021 on a higher note as they brought representatives from farmer groups and financial institutions together for a constructive conversation on how to realize mutual benefits.

  

On Friday 1 ^st October brought together Financial Service Providers, Cooperatives and self-help groups in a meeting aimed at making the linkages that have been lacking between these groups.

  

Many Cooperatives and Self-help groups belonging to farmers have been anguished following the lack of money to carry out their businesses.

  

On the other hand, there are financial institutions, like SACCOs that lack sufficient customers yet they have unutilized money.

  

Linkage

  

The linkage that ASDSP brings is to ensure that the groups get their money through loans from financial institutions. The financiers also benefit from loaning the groups and getting interests.

  

Ng'arua Cereals is one of the Cooperatives in the County that have severally benefitted from a Laikipia County financier - Laikipia County Revolving Fund. According to the Cooperative chairperson Nahashon Kagiri, the funds have helped in improving their members's lives and those of the community.

  

We have received an accumulative figure of Ksh 17.5 million in the four-time we have applied. We have used the money to buy directly from our members and sell directly as a cooperative, thereby eliminating the brokers who used to exploit them. said Kagiri.

  

The 126-member cooperative has helped over 3,000 farmers, both members, and neighbors. Last season they bought a 90kg bag of maize at Ksh 2,500 against the broker's buying price of Ksh 2,200.

  

Ng'arua Cooperative also buys the right fertilizers in bulks for the members at reduced costs and ensuring quality in farm produce.

  

Other organized groups can also enjoy such services with access to funds as loans or grants and help in improving the quality of life for members and the community at large.

  

Six Percent

  

It was a great experience as farmers and other group representatives, 26 of them, expressed their gratitude for learning new things from the nine financial institutions represented.

  

Some admitted that they learned for the first time that there are sources of funds that charge very low-interest rates, way below the main banks.

  

For example, Youth Fund does not charge any interest. Women Fund also does not have an interest rate, and so also is the Uwezo Fund.

  

Others like the Revolving Fund and Laikipia County Economic Stimulus Fund offer loans at very little percentage.

  

The Revolving Fund's interest rate is six percent while the economic stimulus's interest rate is 7.5 after the county government of Laikipia agreed to pay for the client's five percent.

  

Other organizations that may be a source of loans for the farmers included Agricultural Finance Corporation (AFC), Nyals Sacco, LMA CBO Kilimon and Nyala Sacco.

  

At least 500 value chain actors were represented as each of the 26 farmers's cooperatives has 20 to 30 members. These include Ndurumo cereals, Ngarua cereals, Salima SHG, Shalos Dairy, Muruku Dairy, Msinduka, Sipili cereals Sacco, Kilimo Bora, Majani, Lalamatak, Laikipia Dairies, Miti Mingi Mashambani, Kijabe Dairy, Kiriita Umoja, Laikipia Produce, Karaba Dairy, Withare Dairy, Olmoran LMA, Nyambugichi, Bahati Digital, and Karandi Farmers.

  

A take-home from the meeting was that everyone present must take up a challenge and handhold a youth group as there is a gap in youth groups.

  

Many young people claim there is no money for them to do business, yet they do not organize themselves into groups which is the basic requirement to get loans or grants from most financial institutions.

  

Productivity

  

The County Government Officials present promised to help the groups struggling to come up with a business plan that can help the groups access financial services for economic empowerment.

  

ASDSP aims at increasing productivity, especially of the three VCA through enhancing skills encouraging innovation, and also enabling climate-smart agriculture.

  

It is currently working with 3742 people in three value chain group actors; 14 in Maize, 15 in the sheep and goat sector, and two in the cow milk business. The aim is to reach 5256 people.

  

Having a business mind in any farmer enables them to create a clear business plan that analyses the possibilities and challenges the business is likely to face, thus avoiding surprises.