Kenya
Microfinancial services for the poor population
Background: Despite its economical growth over the past years Kenya still remains one of the poorest countries in Africa. A lot of subsistence farmers survive of small pieces of land where they are mainly growing maize. Farms and small enterprises do only have few opportunities to expand and to develop their capacities due to lacking access to saving and credit services. Savings would provide more security to also face unforeseen events like crop failures due to drought for example. Microcredits contribute to developing these enterprises further, to increase their profit and to create new workstations. Currently the existing saving- and credit cooperatives are not able to handle the big demand in the rural areas of Kenya.
The Project: In total, six savings- and credit cooperatives in the rural regions of Kenyan are supported. This helps 5.000 members of the cooperatives to gain access to highly qualitative and well-priced savings- and credit offers. The members of the cooperatives are farmers and owners of small enterprises, who are active in the field of dairy products, poultry farming, herbal products or in street trading. Swisscontact supports the cooperatives in the executive and in the training of employees. Based on the needs of the rural population new savings- and credit offers are conjointly developed. Swisscontact encourages the cooperation of the cooperatives with the Equity Bank, the biggest Kenyan microfinance bank. The Equity Bank supports small cooperatives with refinancing, consultancy and the training of their employees.
Aim of the project: One aim of the project is to offer and to expand credit and savings opportunities for the poor in rural areas of Kenya. The population profit from the offers, are able to expand their enterprises and do most probably increase their income which contributes to the improvement of their and their families’ livelihoods. In addition new workstations are created and the youth unemployment rate reduced.
Beneficiaries: The main beneficiaries of the Swisscontact project are farmers and owners of small enterprises in the rural areas of Kenya, who did not have access to credit and saving opportunities in the past. One of the main beneficiaries of the newly created workstations in the farms, small enterprises and expanded finance institutions are women and unemployed youth.
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