K-Rep Group arm goes rural in search of growth

K-Rep Development Agency (KDA) has initiated a multi-million shilling project aimed at providing financial and technical assistance to agribusinesses.

Through its new subsidiary Juhudi Kilimo, the project hopes to tap into an estimated 1.8 million micro, small and medium enterprises in Kenya especially those planning to start or expand businesses in the agricultural sector.

KDA is a research and development arm of K-Rep Group mandated with crafting financial products for the poor.

It targets those in rural areas who have normally been overlooked by mainstream financial institutions.

Last year, the initiative disbursed close to Sh60 million in loans to over 6,000 borrowers across the country.

To increase lending, Juhudi is now looking for funds in the range of Sh325 million to Sh525 million in debt, equity, quasi-equity and grants over the next three years to fund operations and build the loan portfolio.

“We are currently seeking financing to meet the growing demand for our products to help reach an additional 11,500 clients in 2010,” said Mr Nat Robinson, Juhudi’s chief financial officer.

He said that assets financed include dairy cows, poultry, artificial insemination and cooling equipment, irrigation equipment, beehives and processing tools.

Technical assistance linkages may include building skills such as basic book-keeping and accessing market information, or may focus on asset-specific technical training.