The dream of any farmer is to secure high farm produce every season, to obtain a good market for his/her produce, and to maintain sustainable and innovative farming practices. For the Upper Ewaso Basin smallholder farmers, the vision has always been to have a successful farming environment that will propel them into large scale farming and eventually enhance their livelihoods. In all this, water plays a fundamental and integral role in achieving what would be considered a success story.
The reality is that we too often fail in our efforts as farmers. The lack of finances and financing mechanisms specific to water infrastructure in the Basin has been an impediment for smallholder farmers.
Efforts to get financial assistance have not been successful as most financial institutions consider it a risky business to lend to small scale farmers. Moreover, farmers with no pay slips or solid business plans are locked out of formal financing by banks because they are seen as liabilities to these institutions.
EMU-SACCO bridges this financial gap through a homemade solution, the SACCO institution. Over the years SACCOs have proven to be the machinery that drives social-economic change for local communities, who have little or no access to formal financial products offered by banks.
The SACCO can be the solution for financial success and furthermore encourages water conservation efforts at household and community level by putting up water conservation infrastructure, such as water pans, and also water efficiency technologies, such as solar pumps and drip irrigation systems.
How the SACCO Works
To become a member of an EMU-SACCO one subscribes by paying a registration fee of KES 1000 (USD 10), minimum share value of KES 2000 (USD 20) and having monthly savings for a minimum of KES 500 (USD 5).
After saving for at least six months one can access a loan which amounts to three times the savings. EMU SACCO has developed a special credit product dubbed Maji Chap Chap Loan. This is a loan facility that ensures your well never runs dry. The water infrastructure loan enables a member to put up water harvesting, water storage and water efficient use technologies. Through this loan a member can purchase dam liners, water tanks, solar pumps, drip irrigation, HDPE pipes, boreholes, shallow well and other equipment that allow you access water. One of the very lucrative attractions of the SACCO is its interest rate which is 0.8% on the reducing balance for the water loan which is relatively low compared to other financing agencies.
Great features
- It has a flexible repayment period of up to 36 months.
- We offer up to 100% financing.
- Enjoy fast loan processing.
- The facility is flexible with collateral requirements.
Additionally why you should sign up for this product
- For maximum benefit to our customers, EMU SACCO has identified qualified service providers and suppliers of water products where members can obtain high quality products and services.
- Members get discounted prices on all products purchased through the EMU SACCO.
Progress report
The first water loan was given on September 2020. To date EMU SACCO has financed 26 of its members with over 2 million Kenya Shillings through the Maji Chap Chap loan.
Become a member today. Contact Susan Gathoni on +254 712 411 107 or on email susan.gathoni@laikipia.org
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