Microfinance in Kenya


	In Kenya, the loans assist farmers enhance supplies of French beans for purchase, processing and export by Frigoken

Since March 2005, AKAM’s activities have been centred in the Kwale/Kilifi districts in the Coast Province and in the Murang’a/Kirinyaga districts in the Central Province. The coastal programme is in support of AKF’s rural support initiatives in the area. Using the group lending methodology and microloans in support of income generating activities such as farming, animal husbandry and retail enterprises, the programme has benefited over 1,700 individuals, two-thirds of whom are women. In an area that is particularly vulnerable to drought and famine, close to 60 percent of these individuals earned less than a dollar a day at the time of their loan application.

In the Central Province, Frigoken, an agro-industrial project of AKFED, is the backdrop for AKAM’s microcredit activities. Over 900 individuals, approximately 50 percent of whom are farmers, have gained access to credit under AKAM’s programme. The loans assist farmers enhance supplies of French beans for purchase, processing and export by Frigoken. In addition, loans are given to farmers to diversify their crop range for greater stability of incomes. The start-up of close to 250 retail enterprises have also benefited from this programme.

The initial successes in both these provinces have given impetus to plans for a rapid expansion of activities as well as the imminent introduction of loans for housing improvement, education and health.

AKAM worldwide

AKAM’s microfinance initiatives range from village lending cooperatives to self-standing microfinance institutions to full-fledged microfinance banks. These activities currently operate in Afghanistan, Burkina Faso, Egypt, India, Kazakhstan, Kenya, Kyrgyz Republic, Madagascar, Mali, Mozambique, Pakistan, Syria, Tajikistan, Tanzania, and Zanzibar. Often they are part of wider integrated development strategy being implemented by the AKDN within each country. In addition to providing financial services to the poor, they may include business or technical advisory/training extension services and business development programmes that work directly with local entrepreneurs.