Background

Kenya, a country known for its beauty and wildlife, is experiencing declining economic growth, falling agricultural production, and high unemployment, all leading to an unprecedented increase in poverty. More than 50 percent of Kenyans live below the poverty line. This crisis is leaving many families vulnerable both physically and spiritually as they struggle with increasing hopelessness and destitution.

Community Description

The town of Thika, about 20 miles north of Nairobi, is a microcosm of what has happened in this country. It has experienced a dramatic increase in population in the past 10 years, leading to more families living in the streets, a higher incidence of HIV/AIDS, and heightened insecurity. It is the administrative center for the Thika District, which has a total population of 900,000 people. One-third of this population lives in the urban area. The Upper Zone of the District has a cool climate with rich volcanic soils that are well suited to coffee growing, tea planting, and pineapple fields. The lower zone has little rainfall and most people live on subsistence farming. Thika was once a major industrial centre, but in recent years many of the large plants have closed leaving many out of work and destitute. It is the entrepreneurs and small business owners who have the challenge of rebuilding the local economy.

Project Description

In 2004 the Anglican Diocese of Thika created the Thika Community Development Trust (TCDT). The Trust operates a savings and credit programme that is empowering poor entrepreneurs, a majority of whom are women, to create new jobs and sustain small businesses. The Trust works with groups known as “Trust Groups” with around 16 members each (see photo). Each group meets weekly to save. By the end of March 2007, there are 45 groups and 721 members. They have saved a total of £60,000 over 2 years - equivalent to saving around 50 pence per person per week for three years. The Trust staff have helped each group to open a secure bank account. Many Groups are now loaning the capital to their members as small loans to help boost their individual businesses – such as tailoring, kiosks, bicycle repairs. They have a 100% repayment record. This is a remarkable achievement, based on adapting a locally trusted model with good governance.

Goals of Thika Community Development Trust

In 2008 the Thika Community Development Trust plans to:

• Establish more Trust Groups to increase the total membership by 1000 clients.  

• Increase the size of the accumulated Capital Loan Fund by £15,000.

Five Talents Partnership

The Diocese of Thika has enjoyed an excellent relationship with Five Talents, including numerous visits by Five Talents representatives to monitor, encourage and train the local staff. The Anglican Church of Kenya has recently launched a MicroEnterprise Development Network to replicate the Thika model to other areas throughout Kenya.

Invitation

Our target in 2008 is to raise £25,000 for the Thika Community Development Trust and a further £30,000 to replicate the model in other areas in Kenya. In this case (unusually) the funds are mainly used for staff costs to visit, train and monitor each self-help group - since the loan capital is generated from their own savings.

More Information

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

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