Kilimo Booster: Musoni Launches an Agricultural Loan for Kenya’s Smallholder Farmers

Though agriculture is the main livelihood for most Kenyans, more than 75 percent of the country’s agricultural outputs are still produced by smallholder farmers on small plots of land using traditional technologies—and mainly for consumption rather than sale. 

Smallholder farmers are typically seen as high-risk loans for microfinance institutions because of the challenges posed by pests, diseases and the weather. Grameen Foundation worked with Musoni Kenya to create a loan specifically designed for these farmers. The paper details how the loan was developed and important lessons for other microfinance organizations.