How Profits Grow
Conversation* with Benson Kinuthia, Vipani Farmer, March 30, 2009

After 18 years of unsuccessful farming in Central Kenya and a hungry family to feed, Benson Kinuthia joined Vipani and finally obtained the support and funding needed to produce sustainable profits. Six months and four plantings after joining Vipani in October 2008, Benson's profits grew significantly, to the point where he can now afford to feed his family, purchase his wife's asthma medication, and even rent additional land for cultivation.

Unlike microcredit or other programs, Vipani builds support units within the community--Local Economic Units--to help poor farmers make sustainable profits by taking responsibility for their own economic future and investing in the right crops and technologies. The Local Economic Units, which are run by Vipani staff, serve as an intermediary and facilitator for local business networks to help build a sense of inclusiveness, trust and enterprise that do not currently exist within the local communities and marketplaces.

In Benson's case, the problems existed with futile arrangements made with middle men and farmer groups and with the buyers that failed to pickup produce. These efforts were made to compensate for the lack of capital and production and marketing support. Benson says, "With low production and poor quality, I hardly generated enough income to cover my cost of production. To make it worse, I used to lose crops to pests and diseases too." His wife and five young children often skipped meals as Benson struggled to sustain their livelihood with the failing farm.

Then Benson found Vipani after learning about it from farmers who were already in the program. The funds lent to Benson were directly invested in a fresh bean variety of French beans--a crop with high profit potential in the current market that Vipani has identified. He started by planting one kg of seed in 1/20th of an acre. Benson also reinvested his own profits. With the first two plantings, he was able to afford to rent more land to cultivate. He increased his planting to 3 kg seeds by the third crop which tripled his profits. "In my 18 years of farming, the most money I ever made was Ksh 9,000. From my most recent harvest as a Vipani farmer, I made Ksh 30,000 (approx US$ $375). My family now has enough to eat," says Benson. By reinvesting part of his profits after each crop, Benson was able to generate $750 in total profits from $150 in total loans in under eight months.

While only a year ago Benson could not afford to feed his family, he now aspires to purchase a fuel pump so he can irrigate more farmland. His lifelong dream to own a piece of land away from his father's homestead is finally becoming more than just a dream--it's now achievable because of Vipani's help.

"In Vipani I found honesty. I found people who listen to the farmer and understand the farmer's problems. I know I can still lose my crops to floods, bad market or other failures," says Benson. "These are challenges in farming and I know Vipani will stand by me to get through them."