USAID, Musoni Microfinance in ksh.940M loan guarantee deal

USAID, Musoni Microfinance in ksh.940M loan guarantee deal

The United States Agency for International Development (USAID) has signed a Ksh.940million loan guarantee with Musoni Microfinance Limited.

Through this risk mitigation agreement, Musoni will develop and roll out innovative financial loan products to increase access to credit within Kenya’s agricultural sector especially within the cereals, dairy, livestock and horticulture value chains.

Following the loan advancement, Musoni is expected to increase its lending base from the current fifteen counties.

The agreement will increase lending approaches for marginalised smallholder farmers and agricultural micro-enterprises.

“Under its Kilimo Booster product, Musoni has been able to expand into rural areas and offer tailored products to smallholder farmers through a lean operational set-up and an innovative credit scoring model.

“With this guarantee, Musoni intends to collaborate with partners along the agricultural value chain in order to provide smallholder farmers with quality inputs, market linkages, infrastructure and other auxiliary services.” said Musoni Chief executive officer, Stanley Munyao on Wednesday.

He further added that small scale farmers, individuals, associations, cooperatives and micro, small and medium enterprises(SMEs) in Kenya will be the key beneficiaries of this guarantee

The guarantee will also help Musomi to scale its digital lending to boost agriculture financing, improve smallholder farmers’ livelihoods and increase food security.

“The agreement we are launching today is one of the many ways that the U.S. government partners with the private sector through agriculture in order to assist Kenya on its journey to self-reliance,” said USAID Kenya and East Africa Investment Team Lead Brook Adam.

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USAID Musoni microfinance limited

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