Tanyikina dairy plant in Nandi District is one of EADD’s many supported farmer hubs that is making steady progress. As one of the pre-existing cooling plants that EADD engaged and since its re-launch in November 2008, the dairy enterprise has marked many milestones. The latest achievement was the launch of its two community financial services project popularly known as village banks.
The two village banks, called Kipkaren and Tamboche, will focus on providing financial services that will enable farmers double household dairy income through integrated intervention in dairy production, market access and knowledge application.
Members of the financial services will be able to efficiently save their milk earnings and acquire loans so as to expand their individual and group businesses.
“Through access to loan facilities, safe savings facilities, payment services, access to credit; and reliable insurance mechanisms, farmers in Kipkaren area can now expand their business thanks to the newly launched banks,” says Mr Augustine Cheriyout, EADD Kenya country project manager
The village banks will help small farmers in the area develop their own savings and credit organizations, identifying viable forms of coordination with the formal financial sector as well as facilitate direct access to financial institutions by some small producers for medium and long term investment needs.
The village bank project is a partnership between K-Rep Development Agency and EADD to establish financial service associations as part of the hub services to its membership. Currently the banks have 1671 members of which 34.5% are women. The shareholders have raised over Kshs.2 million in form of equity investment and has seen its members saving Kshs.40.3 million through it since it started operations early 2010. The two village banks were officially launched on June 22 2010 by the Minister for Livestock Development, Dr Mohamed Kuti.
In addition, EADD and Family Bank have partnered to enable dairy business service providers access loan facilities for motorbikes and other equipments required. The motor bikes will be used to enhance business development services like provision of artificial insemination services and animal health services to farmers in a timely manner.
Guarantees will come from the milk cooling plant through a check off system payment to the bank. EADD will support 10 active services providers by paying the initial 10% down payment required by the bank.