Musoni Microfinance Ltd (Musoni), is a Kenyan based microfinance institution established in 2010. Musoni prides itself as a completely cashless microfinance institution and a pioneer in the digital lending space. It enables customers to receive and repay their loans via Safaricom’s M-PESA system. Musoni has rapidly grown, with an extended network of 37 branches across Kenya and an expanding client base. It seeks to create financial and social impact for women, youth and smallholder farmers through its broad portfolio of flexible lending products. One such product is the Kilimo Booster loan, which is a product specifically for smallholder farmers, with flexible terms and a customizable grace period based on a farmer’s seasonal cash flow.
This SDM analysis explored the extent to and the conditions under which Musoni can sustainably scale up its ag-finance portfolio profitably. It also sought to assess Musoni’s social and economic impact across a few potential dimensions, including impacts accruing to borrowers, employees, value chain partners, and the local community. The analysis shows that Musoni has created substantial impact to date and has a strong platform to build on moving forward; farmers, particularly women and youth, value its services and use loans to make critical productive investments, while funders continue to support the organization.