Case
Teaching Notes
Supplementary Resources
Abstract
In January 2013, Nat Robinson, the 32-year old CEO of Juhudi Kilimo, is faced with the challenge of how to best introduce and implement an incentive plan among the microfinancing institution’s (MFI) 78 employees. Established in 2004, Juhudi Kilimo provides microloans to Kenya’s rural population and had approximately 10,000 customers at year-end 2012. With a new round of capital, Juhudi Kilimo’s present goal is to scale-up and increase its customer base by ten-fold -- to 100,000 -- by the end of 2015. Robinson now wonders how he can best design an incentive plan -- particularly for its 36 loan officers -- that will allow the MFI to reach this goal most efficiently and effectively.
This case was prepared for inclusion in SAGE Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2023 Sage Publications, Inc. All Rights Reserved
Resources
Exhibit 1: Map and Key Facts on Kenya
Population: 43 million
Age Population: < 15 years: 42.5 percent; < 65+ years: 2.7 percent
Life Expectancy: Male, 61.6 years; Female, 64.6 years
Birth Rate: 31.9 per 1,000
Death Rate: 73 per 1,000
Infant Mortality: 43.6 per 1,000
Per Capita GDP: $1,800 (USD)
Literacy Rate: 87.4 percent
Motor Vehicles: 11.1 per 1.000
Internet usage: 28 percent of population
Sources: Chlopak, Leonard, Schechter & Associates, republicofkenya.org (map); The World Almanac and Book of Facts 2013 (key facts).
Exhibit 2: Juhudi Kilimo Asset Classes
| Asset Code | Asset Name |
| 1 | Dairy Cow |
| 2 | Irrigation Equipment |
| 3 | Water Tank |
| 4 | Poultry |
| 5 | Farm Implement |
| 6 | Posho Mill |
| 7 | Motorbike/Transport |
| 8 | Chaff cutter |
| 9 | Pigs |
| 10 | Dairy Goats/Sheep |
| 11 | Cattle Shed /Zero grazing units/Dairy Unit |
| 12 | Bee Keeping |
| 13 | Agrovet |
| 14 | Tractor |
| 15 | Fish Farming |
| 16 | Farming Inputs |
| 17 | Veterinary Services |
| 18 | Generator |
| 19 | Bio Gas Plant |
| 20 | Solar lights/panel |
| 21 | Rabbits |
| 22 | Cereals |
| 23 | Banana Farming |
| 24 | Land |
| 25 | Horticultural Farming |
| 26 | Milk Cans/Milk Vendor |
| 27 | Water Pump/Water Pipes |
| 28 | Greenhouse |
| 29 | Animal Feeds |
| 30 | Milk Cooling Equipment |
| 31 | Barbed wire |
| 32 | Artificial Insemination |
Source: Juhudi Kilimo.
Exhibit 3: Juhudi Kilimo’s Group Meeting Locations Geo-tagged across Kenya Using Smartphones (as of March 2012)
Source: Juhudi Kilimo.
Exhibit 4: A Typical Juhudi Kilimo Loan Officer Group Visit (with members of Berkeley-Haas project team)
Source: Berkeley-Haas Project Team.
Exhibit 5: Compensation
Source: Berkeley-Haas Project Team.
Exhibit 6: Bonus-Based Compensation
Source: Berkeley-Haas Project Team.
Exhibit 7: Job Satisfaction
Source: Berkeley-Haas Projec
This case was prepared for inclusion in SAGE Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2023 Sage Publications, Inc. All Rights Reserved
