Henrok 6 is a registered youth group that was founded in year 2007 to promote positive youth development through agribusiness. The group is involved in cereal value chain that involves processing maize, millet, sorghum and cassava into shifted maize flour branded as Ugali star and composite porridge flour branded as Uji star. The group has been incorporated formally as a company and operates 3 cereal milling shops in Kiratina, Natewa and Umoja-Lanet in Nakuru East Sub County of Nakuru.
Challenge
The Covid-19 outbreak and resultant curfews and lock downs took a heavy toll on the groups’ milling business. The schools closure, closure of all eatery joints, ban on wedding and funeral gatherings led to a drop in demand, the business was unable to generate revenue to pay its running costs like salaries, rent, suppliers of raw material and electricity bills. The group acted by slashing into half the salaries of their 7 employees in order to remain in business and closed one shop around May 2020 at the peak of Covid-19 Pandemic.
Action
Fortunately, having participated in the Vijabiz project implemented in Nakuru County by USTADI, Henrok 6 Group received applied and qualified for a grant from USADF through USTADI to cushion the business against effects of the Covid-19 pandemic. The first tranche of KES 400,000 received in June 2021 and was used to settle unpaid salaries to retain employees and acquiring protective gears, masks, face shield and sanitizers for staffs, members and customers to curb the spread of Covid-19, paid off raw material supplier debts and purchased more raw materials.
Results
As a result of this disbursement of funds, Henrok 6 group were able to continue running their business and reclaimed their customers. This funding boost enabled the group to attain the profit margin for the year ending 2021 of KES 27,000 of which KES 83,500 (68%) profit was accrued during the half year of grant fund utilization from June to December 2021. In comparison to pre Covid pandemic figures in profits of KES 244,000 at the end of 2019. We are hopeful 2022 will post highest profit ever since the country has opened up and our business is back to full operation.