Through access to Village Savings and Loan Associations (VSLAs), community members can save and take out short-term loans in times of economic distress/hardship.
Project’s Key Aim
The initiative aims to entrench savings culture and promote pooling of resources among the community members. This helps them to secure loans in times of hardships or when they want to implement a development project.
CALEP’s Strategic Intervention Measure
- Training: CALEP has held intensive awareness forums to promote awareness within the communities. The areas of savings, loans and the prudent use of acquires loans have been covered extensively.
- Establishment of VSLA: The project has established 47 VSLAs with 928 members. The VSLAs span the entire CALEP organization’s operational areas.
Results of the Intervention Measures
- Entrenchment of Savings Culture: As of December 2019, these VSLAs held savings of the equivalent of Ksh 1,438,042.00 (US$ 1 4,380.42) and had lent a total of Ksh 411,911.00 (US$ 4,119.11) to members.
- Easy Access to Loans: A large amount of the money saved by the VSLAs has been used as deposits with microfinance institutions (MFIs), to enable households to directly access loans from the MFIs. A total of 8 households have taken out loans from MFIs at an average of Ksh 10,000 per household.
- Economic Empowerment: These loans have enabled many women to become economically active for the first time, earning money from a variety of activities, such as selling chips, selling Vegetables(greens) and opening small food Kiosk.