FREQUENTLY ASKED QUESTIONS
1. Who is Commodities Fund? Where can I get your offices?
ANSWER: Commodities Fund is a National Government Agency established by Crops Act under the Ministry of Agriculture & Livestock Development to provide affordable and easily accessible credit to the crops sector in Kenya
ComFund’s Nairobi Head Office is at Utalii House, 11th Floor, along Utalii Lane, Off Uhuru Highway Nairobi. We also have regional offices in Embu, Meru, Nyeri, Kericho, Eldoret, Mumias and Mombasa
2. What do you finance?
ANSWER: We are currently availing low cost loans to farmers and other value chain players in coffee, sugar, coconut and cashew nut subsectors. We are soon extending financing to Banana and majority of edible oil crops subsectors
3. Whom do you finance?
ANSWER: We finance players within targeted value chains, including producers (both small scale and large scale), farmer groups/ cooperatives/ outgrower institutions/ unions/ saccos; Agricultural institutions involved in production/ processing; individual value addition processors, among others.
4. What is the maximum amount you can fund an individual/ cooperative at ago?
ANSWER: Maximum for individuals: Up to Kshs. 15 Million; SMEs (Cooperative/ Associations/ Special groups): Up to Kshs. 100 Million; Corporate (Saccos/ Unions/ Liability Companies…etc): Up to Kshs. 500 Million
5. How much interest do you charge for your loans?
ANSWER: Loans from comfund are advanced at an interest rate of between 3% (affirmative action targeting Women, Youth and PWds) to a maximum of 7.5%. Also there is a processing fee of 1.5% of the loan amount requested.
6. How long is the repayment period?
Short Term Loans (repaid within 12 Months); Medium Term Loans (repaid within 13 months – 36 months) and Long Term Loans (repaid between 37 months and 72 Months)
Repayment instalments are monthly, quarterly (3 months), Semi-annually (6 months), Annually or combination of all these or one off (8 months, 12 months, 18 months or 24 months). The repayment plan is discussed and agreed with the loanee.
7. What collaterals do you accept to secure a loan facility from ComFund?
ANSWER: Securities include: Tangible collateral, including title deeds, as well as intangibles including bank guarantees, Direct Settlement System receipt (for coffee subsector), among others. This is meant to ensure that no (small) producer or value chain player is discriminated against in accessing ComFund loans due to lack of tangible collateral.
8. I am a small scale coffee/ sugar farmer. How can you help me?
ANSWER: As a small scale coffee/ Sugar producer, you can access financing, either directly (individually applying to the ComFund) or through your cooperative society (or out-grower institution) to finance any of your farm operation, to undertake primary processing of your coffee, to set up water infrastructure, to undertake value addition, to establish new factor or repair existing one, to build new processing infrastructure, including storage facilities, to establish security systems for your produce, among other activities
9. In case I am permanently incapacitated or demised before I complete servicing my loan, how will you ensure that my loan is paid, without distressing my family?
ANSWER: All loans advanced from the Fund are insured against such unfortunate occurrence as death. In addition, the ComFund has always engaged with the family (ies) of deceased loanee (s) for amicable resolution of any loan dues.
10. Do you finance livestock sector?
No, we do not finance Livestock sector. Our mandate, as given by the Crops Act 2013, is limited to financing crops sector only
For more Information, contact us:
Our website: www.comfund.co.ke
Our facebook page: www.facebook.com/commoditiesfund
Our X (formerly Twitter) Page: @cofkenya
Our institutional email: info@comfund.co.ke
( we respond to online correspondences within a day)
