AID grant no. 615-0236-G-00-0048-00 to Farming Systems Kenya, Ltd. for a program in the development of smallholder agricultural training and credit

(FSK), an indigenous PVO, to provide training and credit to small farmers in Nakuru district. FSK will train farmers in crop and livestock production techniques as well as in recordkeeping and credit management; provide in-kind loans for seed, fertilizer, and heifers; and advise farmers on market conditions and provide limited marketing and supply services. The training will consist of 2-day classroom sessions followed by field days and visits with individual farmers. Seed and heifer loans will be paid back in- kind, plus a 10% to 25% interest contribution to permit revolving loans and to support loan administration by FSK. FSK"s loan management system and market advisory services will be computerized for more efficient operation. In addition to these primary activities, FSK will purchase a tractor and sell it on a credit basis to a private company which it has recently helped to establish. The company will repay FSK in cash plus interest and will in turn rent the tractor to smallholder farmers to assist in the preparation and harvest of their fields. This arrangement is expected to contribute to both FSK"s financial security and smallholders" productivity. It is expected that some 2,000 farmers will be trained under the grant, and half of these will receive credit.