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Youth Enterprise Development Fund & Amiran Kenya Ltd announce loan for the AgriVijana Amiran Farmers Kit

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A first of its kind Private-Public Partnership focusing on youth empowerment

The Youth Enterprise Development Fund (YEDF) and Amiran Kenya Ltd have partnered to support young farmers in acquiring a tailor made Amiran Farmers Kit (AFK) designed specifically for the AgriVijana Loan. YEDF has started the AgriVijana Loan to help youth, who are in groups, to get involved in Agribusiness by purchasing the special AFK’s each with 2 greenhouses and a large irrigated area.

This is a first of its kind Public Private Partnership that seeks to reduce youth unemployment. In its first phase, the AgriVijana Loan will be provided to 2 groups each with 10 members who are youth in every constituency in Kenya. Phase 2 of the loan, which will follow in several months, will offer the loan to youth throughout the country.

Speaking during the signing of the MoU between the two organizations attended by CEO YEDF, Juma Mwatata, Managing Director Amiran Kenya Pinhas Moskovich, Board and staff of the Youth Fund and Amiran, Mr. James Gitau Singh, Chairman of the Board of the Youth Enterprise Development Fund said, “Starting last year the Fund has focused on providing sector specific loan products to the youth, to enable them take advantage of their talents as well as resources in their locality. To this end the Fund is actively exploring partnerships with likeminded institutions. We are therefore glad to formalize this partnership with Amiran Kenya Limited. Under this arrangement the Youth Enterprise Development Fund has established a new loan product, AgriVijana Loan. The loan will be provided to youth groups across the country to buy a complete farmers kit from Amiran Kenya. In the first phase we have set aside Kshs. 150 million to help purchase 420 Farmers Kits, two per constituency. In this first phase we expect to involve over 5,000 youth, creating instant jobs for them. The project will also improve food security considerably. We expect that thousands of youth will be attracted to this cool farming concept and therefore be gainfully engaged. We shall be putting out adverts in the media this week to invite young people interested in this product to submit their applications”

The Amiran Farmers Kit (AFK), a tailor made kit designed to meet the farmers specific needs, was created with the aim of allowing small scale farmers affordable access to modern agricultural technologies, methods and inputs of the highest standards.

The AgriVijana Amiran Farmer’s Kit, contains 2 greenhouses, a drip irrigation system for the greenhouses and 400m of open field, a water tank, plant support system, Gold Medal Seeds to be grown inside the greenhouses and in the open field, high quality fertilizers for one season, crop protection products for one season, a farmer’s
sprayer, nursery set, health and safety protective gear, training, agro-support, and AFK insurance.

Most youth perceive farming as something one does to survive or when one retires. As part of the AgriVijana loan, YEDF and Amiran will embark on an advocacy campaign that aims to raise awareness among the youth to the financial opportunities that modern agribusiness offers.

Yariv Kedar, Amiran’s Head of Agro Division pointed out the need for youth to engage in agribusiness, “The future of Kenya is in the youth who are the ones that have to meet the demand of creating and producing food. As it stands today, many people look at agriculture as something that the old granddad has done and is not popular. In this partnership, we are bringing: a part of food security, teaching people how to produce, the possibility to create money for their pocket and to make agribusiness something that is sustainable and attractive. We also bring them modern technology and very high quality inputs.”

The loan allocated by the YEDF to acquire an AgriVijana AFK is Kshs. 358,344. The group is expected to raise 10% of the loan amount. Repayment will start after a 4 month grace period, which is adjustable in the case that the crops planted by the group take longer to mature.

The loan shall be repaid in three cycles totalling to 3 years. Each cycle of 12 months shall be as follows; the first four months after installation of greenhouse shall be grace period, 5- 8 months is the high yielding season therefore, the group will pay Ksh.17,425 per month and 9-12 months is the lower yielding season in which the group will pay Ksh. 10,000 per month during this period. The security of the loan will be the financed equipment, assignment of sales and personal guarantees by group members.

There are a number of qualifications for getting the loan most importantly that the group’s composition must be 70% youth (18-35 years) with the leader being youth and must be registered in the constituency it’s applying the loan from. Other qualifications include access to land and water and knowledge or experience in agriculture. The groups must also show evidence of ability to raise the 10% of the investment outlay and be registered with the relevant government ministry. Groups with sponsors / guarantors will have an added advantage.
View the complete Agrivijana Loan Brochure | View the complete Agrivijana Loan Poster