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Innovative loans enable Kenyan farmers to access climate-smart irrigation

WOCCU/KUSCCO loan product developed through USAID Cooperative Development Program

A farmers’ cooperative in rural Kenya commissioned a new crop irrigation system Wednesday—made possible through an agricultural lending product developed by World Council of Credit Unions (WOCCU) and the Kenya Union of Savings and Credit Co-operatives Ltd. (KUSCCO).

The irrigation system, consisting of a borehole and solar pump, will allow the 90 members of the Kanoto Horticultural Farmers’ Cooperative to produce French beans for commercial sale.

The farmers’ cooperative utilized “KILIMO”—a loan product WOCCU developed in collaboration with KUSCCO through a USAID Cooperative Development Program (CDP) project—to finance the construction of the system.

The KILIMO product consists of:

  • lending to SACCOs (Savings and Credit Co-Operatives), which can then lend to small farmers.
  • training materials for SACCOs and farmers on value chain (potatoes, French beans, sorghum), and access to suppliers and markets.
  • loan methodologies and applications for underwriting agricultural loans.
  • loan insurance for small, rural producers to protect against climate, pest and production issues.
  • loans to access solar pumps from SACCOs, as part of a Smart Water product from KUSCCO.

World Council CDP Director Jean Thiboutot attended the ceremony to commission the new irrigation system. It is one of several success stories to come out of the eight-year “Improving Small Rural Producers Income through Integrated Access to Financial Services and Agricultural Markets" project, which concluded at the end of 2018.

“It is always inspiring to see our CDP projects result in financial products and services people can easily access and utilize to improve their quality of life,” said Thiboutot. “This irrigation system will enable 90 farmers to grow their businesses and help provide for their families.”

USAID describes CDP as “a global initiative that is building the capacity of cooperative businesses and cooperative systems for self-reliance, local ownership, and sustainability.” WOCCU has administered CDP projects since 2010.

WOCCU CDP Director Jean Thiboutot (center) at the commissioning ceremony in Masii, Kenya.

The solar pump, mounted flat on the left, pumps water into the reservoir on the right.

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