Kaaba Microfinance Project for Low-Income Women Farmers

Rockflower Commitment: Fund project to increase the numbers of women reached in rural areas in need of financial services.
Location: Somaliland

In spite of the huge agricultural potential of Somaliland, the growth in agricultural production has not been able to keep pace with that of the demand for food and agricultural products. Somaliland relies heavily on the large quantities of food it imports despite the fact that the country has the land and appropriate climate to grow crops. With high local demand and low food domestic production the country is facing an upward pressure on food prices. High food prices are also adversely impacting low-income farmers because they sell at low prices at harvest time to finance essential needs and buy back at high prices later in the season when their own stock runs out.

The agricultural sector in Somaliland is predominantly made up of smallholder farms which produce the sector’s output. However, the current situation of these smallholder farms is constrained and not sustainable. The majority of these farmers are women and are unable to adequately feed their families, and their livelihoods are not sufficiently diversified to insulate their households from external shocks, due mainly to their low production base. Offering opportunities to increase the socio-economic welfare of these smallholder farms, which are mainly owned by women, is of a paramount importance for Somaliland’s food security.

Providing credit for farm investment, improved post-harvest practices, greater household cash flow, all enable better access to markets, promote better management of risks and encourage non-farm income generating activities. It is against this background that K-MFI aims to increase the production of the targeted smallholder farms owned by women.


About Kaaba Micro finance Institution

Kaaba Microfinance Institution (K-MFI) is a financial service provider that strengthens the economic base of the low-income women farmers and women livestock owners, youth, micro-businesses. K-MFI has been operating under its parent foundation known as Doses of Hope Foundation (DHF) since 1999. Despite many challenges and constraints, the institution managed to build itself from a microcredit project that started with 150 clients, to a microfinance institution that has served up to 14000 clients from 1999-2015- out of which 80% are low-income women. K-MFI has currently over 6400 active clients and is operationally sustainable since 2012 with a repayment rate of 98%.

In partnership with Rockflower, K-MFI will in this project access financial service to 200 women farmers living in the rural areas of Somaliland. The overall goal of this project is to increase and expand the productivity of these women farmers and to create for them sustainable and resilient livelihoods through the provision of financial services. The project will further indirectly benefit another 1400 of their dependents. K-MFI will offer loans of up to USD $250 to the 200 women-farmers who require capital to increase their agricultural production and compete in the local markets. The project also provides financial literacy training as well as a mandatory savings account for each group.


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