1. INTRODUCING GROUP LENDING THROUGH DECENTRALIZED SACCO CELLS BY: DR. ESTHER KEINO GENERAL MANAGER, BELGUT RURAL WOMEN SACCO - KENYA Presented to: GLOBAL WOMEN’S LEADERSHIP NETWORK 27/7/2014 – Gold Coast, Australia

2. Culture and Credit Union (SACCOs) Movement in Kenya ● Credit Unions Constitutes 31% of national GDP ● Kenya has over 5,000 SACCOs ● Kenyan SACCOs has mobilized over Ksh. 420 Billion (members’ savings for disbursement as loans), and Ksh. 500 Billion (asset base). ● Women represent 30% membership and less than 10% leadership ● Kenyan women form the majority of the unbanked, the poor, and are burdened with increasing family responsibilities. The situation is a result of gender inequality, patriarchal cultural values and practices, and HIV/AIDS.

3. History of Belgut Rural Women SACCO ● Belgut Rural Women SACCO was registered in 2005 and launched in 2007 as the first women’s SACCO in the Rift Valley region. ● The objective was/is to mobilize savings and offer affordable credit to women ● Since inception, the SACCO has given women a chance to save and borrow money, as well as to start or enhance businesses ● Currently, the SACCO has 1,500 active members in 17 cells, with a capital base of Ksh. 6 Million ● Belgut Rural Women’s SACCO has inspired the formation of several other women-only SACCOs in the region ● Despite the accomplishments, the SACCO has faced challenges of loan management, poor loan recovery, shares, and hence, poor growth of business.

4. Proposed Project ● Implement appropriate management and loaning policy model appropriate to Belgut SACCO and target population ● This will ensure that current members: o Build more shares o Take bigger loans o Recover the loans effectively o Grow and enhance their businesses o Introduce other SACCO products o Improve family welfare The above will allow women to gain economic empowerment that is key to women attaining gender equality in all aspects of their lives.

5. Specific Activities to be Undertaken 1.Training and strengthening forum for 25 member from each of the 17 cells to build capacity for group lending and decentralized operations. 2.Review, Amend, and Produce policy documents by board members, staff, cell leaders and County Cooperative Officers to incorporate the new Policy changes 3.Entrepreneurial Skills Training for 25 members per cell 4.Sensitization and membership Drive in 9 wards of Belgut and Sigowet/Soin Sub counties

6. Support for the Project Would: ● Establish appropriate and innovative loan Management model for informal SACCOs that are not salary or commodity based but use mutual social trust like Grameen approach ● Increase both the quantity and size of loans ● Minimize loan defaults ● Create a good saving culture among poor rural women ● Promote entrepreneurship culture among subsistence farmers ● Engagement in cooperative movement for economic empowerment ● Add other products to the SACCO like housing ● Provide members with a strong sense of ownership of the SACCO ● Economically empower the female population which is a precondition for gender equality

7. WAYS IN WHICH THE NETWORK CAN SUPPORT PROPOSED ACTIVITIES  SACCO will benefit from GWLN experience, expertise, and networks  Mentor, educate, and build confidence in women as successful business people  Share best practices from other countries with similar challenges  Build strong business skills  Promote quality of life through poverty eradication among women  Learn from our experiences as well, as it may assist other groups elsewhere

8. BELGUT RURAL WOMEN SACCO CENTRAL MANAGEMENT COMMITTEE IN FRONT OF THE SACCO OFFICE

9. THANK YOU – AHSANTE SANA!  Thank you for your time and attention  Please attend my follow-up discussion group if you have any questions.