Juhudi Kilimo, through strongly upholding the seven principles of a SMART microfinance, has gained top rating in Kenya from MFTransparency for transparency in pricing. Juhudi Kilimo’s transparency index is rated 57, the highest in Kenya beating other 16 institutions evaluated. Juhudi Kilimo publicly demonstrates its commitment to pricing transparency, integrity and poverty alleviation. Juhudi’s emphasis on transparency is to enable all our stakeholders to make informed decisions. Microfinance Transparency was established and launched in 2008 to promote the welfare of poor micro-entrepreneurs, and to promote the integrity of microfinance as a poverty alleviation practice. MFTransparency believes there is a need to present information on credit products and their prices in a clear and consistent fashion. And at the same time, MFTransparency sees an opportunity to provide education on the considerations MFIs face regarding interest rates and product pricing.
MFTransparency collects ¸analyses and discloses microloan pricing data from over 500 microfinance institutions around the world on loans going to over 50 million clients. Working on a country-by-country basis, the pricing data is calculated using a standardized approach that enables all prices in all countries to be analysed without definitional inconsistencies.
The microfinance industry in Kenya is one of the most developed in Sub-Saharan Africa, serving an estimated 23% of the adult population.The industry has grown enormously over the last 10 years, both in terms of the gross loan portfolio disbursed and the number of active borrowers served. This growth has been aided by the rapid expansion of mobile banking and regulatory policies related to deposit collection, branchless banking and agent banking.The main types of microfinance service provider in Kenya include commercial banks, non-bank financial institutions, licensed saving and credit cooperatives and NGOs.