Kibera residents start slum sacco with Sh12m working capital
British High Commissioner to Kenya Christian Turner (centre) shares a joke with Shining Hope for Communities (Shofco) CEO Kennedy Odede Saturday during the launch of the Shofco Urban Network, a grassroots sacco that will offer loans to people living in slums without collateral. Seated on Dr Turner’s left is former Judiciary chief registrar Gladys Boss Shollei. PHOTO | VINCENT ACHUKA | NATION MEDIA GROUP
What you need to know:
- It was launched in style in the presence of US Ambassador to Kenya Robert Godec and British High Commissioner Christian Turner.
- Since 2013, the network has grown to over 3,000 members divided into 300 groups.
- Up to 86 per cent of the members are women.
- The government has invested heavily in Kibera through the National Youth Service projects.
It was all joy and jubilation Saturday when the residents of Kibera celebrated the culmination of a two-year process of lending money to each other and saving it by launching their own sacco that will offer them cheap loans.
Shofco Urban Network will allow slums dwellers to access credit without collateral, jobs or even bank accounts.
All one needs is to become a member at no cost and save in order to accumulate shares with fellow members acting as collateral.
It is supported by the American and British governments.
It was launched in style in the presence of US Ambassador to Kenya Robert Godec and British High Commissioner Christian Turner.
Members have raised Sh12.3 million as working capital for the new sacco.
It was raised through interest from consolidating their savings for the last two years and lending them to members to start their own businesses.
From a single group of single mothers in the slum in 2013 who were lending each other money through the table banking concept, the network has grown to over 3,000 members divided into 300 groups.
The project is run by Shining Hope for Communities (Shofco).
MOST MEMBERS WOMEN
Up to 86 per cent of the members are women, a fact that Shofco’s chief executive Kennedy Odede attributes to the demographics in the slums.
“A lot of men are jobless but it is women who feel the pain of raising a family because if their children are hungry they are the ones who bear the burden,” he said.
Mr Godec assured the crowd of his country’s technical and financial support and asked them to stop depending on politicians as they had failed to rescue them from poverty.
“President Barack Obama believes in you. The United States will be there all the way and we are beside you,” he said to a wild applause.
He added: “It is a community that builds the nation.
“America became prosperous because people came together to build schools and factories. You are the only ones that can better the slums.”
Mr Turner echoed Mr Godec’s sentiments while pledging his government’s support.
“Communities can be transformed if small groups of people come together and support each other’s endeavours instead of waiting for politicians,” he said.
The government has invested heavily in Kibera through the National Youth Service projects.
