Podcast: Designing an Effective Rural Finance Product to Improve Food Security for Livestock Traders in Kenya
Designing an Effective Rural Finance Product to Improve Food Security for Livestock Traders in Kenya
As part of the Rural Agricultural Finance and Food Security (RAFFS) Practitioner Learning Program (PLP), Food for the Hungry (Kenya) collaborated with various stakeholders to develop a loan guarantee product for rural livestock traders in Northern Kenya. After conducting research on the livestock value chain in their project area, Food for the Hungry concluded that the rural finance products currently available did not adequately address the unique needs of their clients.
To address this gap, Food for the Hungry, in collaboration with Equity Bank, developed a loan guarantee product to assist rural livestock traders by providing them with needed capital to purchase additional livestock to sell in local markets. It was envisioned that the increase in income from improved sales would result in better household food security for the traders as well as positively affect the livestock value chain in Northern Kenya.
After conducting interviews with livestock traders, Equity Bank staff and representatives from the Kenya Meat Commission, Food for the Hungry created a podcast to document their experiences in creating a targeted rural finance product to improve food security along the value chain.
You can download the podcast or script at SEEP’s RAFFS webpage.
About RAFFS: In 2010, the number of undernourished people worldwide topped 925 million. Among the many factors responsible for this figure are high domestic food prices, lower household incomes, and increasing unemployment, all of which have significantly reduced access to food for the poor. Research has shown that a healthy agricultural sector can provide an economic buffer during financial crises. In addition, financial services responding to the food security needs of rural households can lead to more successful outreach and have a greater impact on the poor.
The Rural Agriculture Finance and Food Security Practitioner Learning Program (RAFFS) is an action-learning project focused on approaches to and connections between rural and agricultural finance and household well-being, including food security. The envisioned impact is that rural households and enterprises will have increasing finance options that serve their needs and contribute to a vibrant rural economy both on and off the farm.