Kenya Linking Stakeholders International Food Aid Conference April

Kenya: Linking Stakeholders International Food Aid Conference April 8, 2009 Sam Coleman Dunlap Project Director – Kenya/USDA World Council of Credit Unions sdunlap@woccu. org www. woccu. org

Who is WOCCU? The global trade association and development agency for credit unions worldwide. Promoting the sustainable development of credit unions to empower people around the world to grow through access to high-quality, affordable financial services. Improving people’s lives through credit unions

What is a Credit Union? Credit unions are financial cooperatives that provide savings, credit and other financial services to their members. Credit union membership is based on a common bond, a linkage shared by savers and borrowers who belong to a specific community, organization, religion or place of employment.

Credit Unions Worldwide 177 Million Members 49, 000 Credit Unions 96 Countries

Programs in 2009

WOCCU/USDA-Kenya: Linking Stakeholders through Value Chain Finance • Credit union strengthening • Agriculture business development services • Education grant program for children of HIV/AIDS-affected households

WOCCU/USDA-Kenya Context • 80% of the population relies on agriculture to make a living • 40% unemployment rate • Estimated agricultural labor lost to AIDS* – 3. 9% (2000) – 16. 8% (2020 est. ) • Nyanza province has one of the highest rates of HIV/AIDS in Kenya * U. N. Food and Agricultural Organization

Kenya

WOCCU/USDA-Kenya Mitigating Ag Lending Risk 1. Farmers become SACCO members and apply for an agricultural loan 2. WOCCU identifies and contracts with buyers 3. WOCCU reviews applications and inspects land to determine input needs 4. SACCO distributes loans in the form of vouchers for necessary inputs 5. Suppliers return vouchers to the SACCO for compensation 6. WOCCU and the buyer monitor crop performance until harvest 7. Buyer remits crop payment to the SACCO 8. SACCO clears the farmers’ loan and transfers the profit to an individual or group savings account

WOCCU/USDA-Kenya Learning from the Process Challenges • Drought • Institutional strengthening • Simplifying the process

WOCCU/USDA-Kenya Learning from the Process Achievements • Comprehensive assistance to farmers – Access to finance – Agricultural technical assistance – Market linkages • Increased credit union membership • Affordable loans and access to savings

WOCCU/USDA-Kenya Adapting What We’ve Learned Peru Sri Lanka Ethiopia

Thank you Sam Coleman Dunlap Project Director – Kenya/USDA World Council of Credit Unions sdunlap@woccu. org www. woccu. org