Summary Concept: Farmers Owned Community Bank - Financial Inclusivity 20 million BoP Small Holder Farmers by 2050

Specifically, the Bank describes its primary objectives as follows:
1. Owned by Farmers: Ownership structure 65% Farmers each owning one share at Kshs 500 (USD $ 5) Target 20 million farmers; Strategic Investor 35%. Total Shares worth $150 million (To be fully paid up in 20 years; annual average intake 2.5 million farmers)
2. Extend banking facilities to all small scale farmers whether as individuals, in registered farmer platforms  and the Communities unbanked poor men and women, disabled, single parents, landless. Collateral free loans in groups of 5.
3. Loan Operations: No collateral, just group guarantee using the Grameen Model of 5 persons. New loans for any member are only available once all previous loans have been 50% repaid
4. Provide self-employment opportunities for the unemployed by starting own MSMEs funded by this bank to hence the AGRICULTURE Value chain
5. Replace the cycle of ‘low income, low saving and low investment’ with a proactive cycle of curbing low income with ‘injection of credit, investment, more income, more savings, more investment, more income’.

Method of Operation (Same as other Banks but with on-demand ECONOMIC INCLUSION)

The Bank will operate through a virtual network of 47 bank branches located at each County and will offer all banking services already being offered by other commercial bank institutions but through a virtual platform similar to Mpesa etc. These branches will comprise a bank manager and 4 marketing Executives/trainers/credit officers and a local credit committee representing all the wards in the County.

VALUE PROPOSITION TO FARMERS: Enjoy all banking facilities accessed through a 3G mobile handset by uploading the specific menu app (Interest Rates BELOW Market rates)

The Bank aims to keep interest rates below the market rate, but a point or two above the Central bank base rate (This is why the Government will own 15% of the Bank, plus strategic investors but most of the capital 65% will come from selling shares to the Farmers/Community on a graduated system of installments till they clear the required amount: Each Farmer to be fully paid up 2 years after joining. Kshs 20.80 weekly. The Bank will receive most of its loanable funds from the Strategic investor.

The Banks other main objectives will include:

1. Mobile platforms for banking; payment systems: by helping to provide appropriate telecommunications access to the rural poor; the bank will finance purchase of 3G/4G mobile handsets and conduct training's on their use at the group level (train trainers)(TOT) {In partnership with a telecom company}
2. Business Development services: R&D: connecting farmers/community with capital markets to increase resources, ease access to inputs, market linkages and value add services;

3. Avail the farmer an opportunity to self-assess their income activities and achieve own set targets to motivate especially the youth on this