Farming

How to get a loan for greenhouse farming in Kenya.

HowKE Team

The Youth Entreprise Development Fund has partnered with Amiran Kenya Ltd to support young farmers in acquiring greenhouses and global compliant agricultural inputs that present a shift from traditional farming methods to modernized ones.

The Amiran Farmers Kit (AFK) was created with the aim of allowing small scale farmers aordable access to modern agricultural technologies, methods and inputs of the highest standard. Designed by Amiran Kenya Ltd, the AFK is a tailormade kit designed to meet the farmers specic needs.

Loan amount per group
The total cost of the Agrivijana AFK is kshs. 358,344. This cost includes an AFK  with 2 greenhouses, drip irrigation system for 2 greenhouses & 400m of open field, group training, agro support, CIC AFK insurance and 8% management fee. The loan has no interest. The group will however be expected to contribute 10%of this cost.

Grace period
The group will be given a 4 month grace period before starting to repay the loan.
This grace period may be adjusted in case a group is dealing with crops that takemuch longer to mature.

Repayment Period
The loan shall be repaid in three cycles totaling to 36 months. Each cycle of 12 months shall be as follows;The first four months after installation of greenhouse shall be grace period5- 8 months is the high yielding season. The group will pay ksh. 17,425 per month during this period
9-12 months is the lower yielding season. The group will pay ksh. 10,000 per-month during this period.

Loan collateral
The security of the loan will be;

The financed equipment
Assignment of sales
Personal guarantees by group members

Insurance
All group members shall be insured by the fund against death and permanent disability
Crops shall be insured against crop failure as a result of natural forces

Qualifications to get the loan

The group must:
Have access to land, minimum of quarter of an acre. This must be supported by documents of ownership and in absence of the documents a written consent from the owner allowing the group to use the said land for a minimum of three years
Access to water
Knowledge or experience in agriculture
Group must show evidence of ability to raise the 10% of the investment outlay
Groups with sponsors / guarantors will have an added advantage
Group must be registered with relevant government ministry
Group composition must be 70% youth (18-35 years)
All group leaders must be youth
*The group must be registered in the constituency it’s applying the loan from
*The above cycle shall be repeated for three years until the loan is fully paid

HowKE Team

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4 thoughts on “How to get a loan for greenhouse farming in Kenya.”

  • Great opportunity! give me your contacts

    • hey Kerich…tell as a little more. how do you intend to approach this opportunity? Are you in a group are you planning to form one? Do you have access to land that is supplied with water?

  • Do you loan individuals above the age of 35yrs?
    Let me hear from you if you do.

    • Those above 35 years can benefit from the facility if they are within a group composed of 70 PERCENT YOUTH (18-35).
      Note :This loan is specifically meant for those in a group.

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