Maize as Payment in Western Kenya

Failures
In 2007 and 2008, One Acre Fund farmers in Kenya repaid their loans using their maize harvest. This report details the valuable lessons about the importance of seeking feedback from clients about repayment structure, and the necessity of balancing operational complexity with impact.

In 2007 and 2008, One Acre Fund farmers in Kenya repaid their loans using their maize harvest. We asked farmers to repay their loans using their maize harvest because there appeared to be an opportunity for One Acre Fund to (1) make loan repayment easier for farmers and (2) purchase maize from farmers at above-market prices. One Acre Fund planned to purchase maize from farmers at central collection points, store it until the price increased, and sell it to bulk purchasers. Our maize payment taught us valuable lessons about the importance of seeking feedback from
clients about repayment structure, and the necessity of balancing operational complexity with impact.

Countries

Kenya