Partners:

• Thika Community Development Trust (TCDT), Thika, Kenya
• Anglican Church of Kenya, Diocese in Thika

Program Type and Services:

• “Savings Led” with capital for revolving loan fund.

This savings-led program follows the Accumulated Savings and Credit Associations (ASCA) model for “Trust Groups,” who then give out loans from the savings pool for business start-up/expansion loans, child education, and emergency loans.

Training and Resource Examples:

• Business management and entrepreneurship for Trust Groups — business planning and values.
• Leadership training.
• Spiritual guidance.
• Savings and credit groups’ constitutions.
• Good savings and loaning processes.
• Solidarity groups methods of co-guaranteeing.
• Pillars of successful microfinance programs.

The Community

A country known for its beauty and wildlife, Kenya 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.

The town of Thika, about 45-minutes from 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, 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 lends itself to coffee growing, tea planting, and pineapple groves. The lower zone has little rainfall and most people live on subsistence farming. Thika was once a major industrial center, but in recent years many of the large plants have closed leaving many out of work and destitute.

The Program

With the loss of the large industrial plants, it is left to the entrepreneurs and small business owners to rebuild the economy.  The Anglican Diocese of Thika requested assistance from Five Talents International to establish a savings and credit program that will empower poor entrepreneurs, a majority of whom are women, to create new jobs and sustain small businesses. The Diocese created the Thika Community Development Trust (TCDT) to operate the program in an efficient and professional manner.

The overall goal of the TCDT Capacity Building project proposal is to contribute to the efforts of poverty alleviation through a sustainable microfinance program. The project employs the principle of savings and credit, and is run by self-help groups herein referred to as ‘Trust Groups’. Trust Groups formed at the grass root level are owned and managed by the members, through the Thika Community Development Trust which is the legal holder.

By the end of 2009, there were 24 ‘Trust’ groups with 1,929 members who had saved a total of $321,428, and with reflows, loaned out $427,142.  Thika currently has plans to graduate four of their Trust groups into Financial Services Associations (FSAs).  FSA’s are a more sophisticated institution with a physical building, safe and 3 employees all of which would be funded by the interest income from the groups portfolio.  These groups will now be responsible for their sustainability.

The Need

Five Talents hopes to reach a total of 5,240 members by the end of 2012.  Please join us in praying for the development of more FSAs in Kenya.

2012 Funding Request:

• $174,074.40
• Cost per member to provide Five Talents' holistic services: $33.22

Help us empower the citizens of Kenya with the capacity to improve their lives by supporting this Five Talents International program. You will be fighting poverty, creating jobs and transforming lives!

 Read our latest update for the Kenya program

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