Presentation Fin4Ag S9 by Edwin Thuo

1. Faulu Kenya Microfinance
Bank – Lessons Learnt from
Agriculture Lending

2. KEY ACHIEVEMENTS
The role of Faulu in Agri finance has been in:-
Availing short term credit for purchase of inputs,
agri equipped, through timely loan facilities
Enhanced agri specific financial literacy trainings
in conjunction with ministry of agriculture
Availing market linkages and partnerships where
in specific value chains we finance players e.g.
dairy
Availing credit and savings products where farmer
can save for facilitating next season inputs.

3. Experience, Lessons Learnt and Way Forward
Challenge Lesson Learnt Way forward
Farmers financial literacy
levels low
Financing may not be
adequate solution
without boosting farmers
literacy level
Faulu has adopted a
hybrid approach with
both training, credit and
savings options availed
Unforeseen family
financial needs e.g.
sickness of nuclear family
member
There is need to offer a
micro health insurance
product to cushion agri-
enterprise for family
member sickness
Have introduced a low
income medical cover
Faulu Afya underwritten
by British American
Insurance
Technology platform
that’s effective for
farmers both to save and
also to access own
monies when there is
need, also to address
emergency needs.
The high transactional
costs for farmers to
access nearest bank
drains available funds.
Also platform is needed
for emergency loans
advancing without form
filling, online application.
Have availed a mobile
banking plat form -Faulu
Popote where clients can
transact at their homes.
Also a mobile platform
for farmers to apply
emergency loan on site
for issues e.g. epidemics

4. Experience, Lessons Learnt, Way forward
Challenge Lessons Learnt Way forward
Market Linkages gaps and
hick -ups
Using government bodies
like cereals board can
help loan using
warehouse receipts.
Doing MOUs with agri-
produce reserves bodies
so as to support farmers
with short terms loans
with a tangible fall back
Lack of ability by farmers
to pay electricity from
national grid, use of
kerosene and firewood to
produce
Farm expenditure on
electricity or kerosene
and firewood reduces
profits and hampers loan
repayment
Faulu has availed cheaper
alternative renewable
energy, partnered with
solar products company,
bio gas providers to avail
a full package to farmers
Identifying farmers
identity in times of staff
transition
Farmers who have build
good relationship
management with officers
get affected if such staffs
transit from institution
Thinking of GPRS
platform to ably locate
farmers, livestock on loan
for fresh relations for
continued loaning.