Background

Living conditions in Kenya have declined dramatically over the last 30 years as the country’s economic situation has deteriorated. Women constitute 43 percent of the informal small-scale operators but there is no access to credit facilities due to lack of collateral and collapse of local credit cooperatives. Half of Kenya’s 31 million people live below the official poverty line (now equivalent to US$45 per month). School enrollment, infant mortality and life expectancy are all showing downward trends. In some parts of the country there is a serious famine.

Community Description

Muranga District, which is north of the capital of Nairobi, is primarily semi-urban and agriculturally-based. However, farmers have difficulty making more than a subsistence living because of low crop prices and land subdivisions which restrict economies of scale.

Project Description

To assist the rural farmers to diversify their businesses, Five Talents is funding a loan project that assists them in making a business investment of their choice.  The initial program targetted 40 farmers all of them women from the Mother’s Union of the Mt. Kenya Central Anglican Diocese. The groups were mobilized in the target areas of Kiharu and Kangema in 4 groups of 10-15. The groups have had a two-week training to agree their business plans, elect their leaders and receive orientation about the project. They have also had basic training in business management. After saving as a group for three months, the groups are eligible to receive loans. Many of the members have opted to buy a dairy cow with a loan of around £400 each. This is a viable business and the milk sales can be used to repay the loan over two years with monthly repayments co-guaranteed by the group.

Five Talents Partnership

The Five Talents partner is the Women Economic Empowerment Consort (WEEC), a local microfinance organization with 10 years experience in the area. Staff from Five Talents visit the partners on an annual basis and receive quarterly reports.

Invitation

Five Talents is seeking £25,000 in 2008 to assist a further 80 women to take loans. Any additional funding will help expand this important project.

More Information

To see the latest report (Q4 2006, pdf) on activity in this project click here.

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