The Groups Savings and Loaning Association initiative is a continuation of the table banking project RODI is implementing in 3 counties: Muranga, Nyandarua and Kiambu targeting 48 community groups. The project aims at strengthening the capacity of communities members and shifting the saving and loaning power to them, and by so doing, helping the, to access financial services
The table banking initiative is a community led micro-finance model where communities organize themselves in groups, get registration with department of social services and mobilize their own resources though saving and loaning. Over the last 5 years, RODI has supported over 450 community members access loans through table banking project. The project involves mobilising community members to form group saving and loaning associations to develop enterprising life skills, build on savings groups and access loans to launch or expand income-generating activities.
As a result, the Group Savings and Loaning Associations (GSLAs) have become impactful on the ability of members to manage their savings, access loans and by extension take greater control of their livelihoods and futures. The project has contributed significantly to supporting farming enterprises, children education, housing and access to property, and income generating activities among others
Looking ahead to 2030, RODI believes that scaling up and strengthening the GSLA model and supporting GSLA members to pursue their economic and development goals can have a substantial impact on the achievement of the 2030 U.N. Sustainable Development Goals. To achieve that scale, RODI proposes to upscale the current table banking project to reach more groups targeting women and youth with economic empowerment interventions.
Young people in rural and remote areas cannot access commercial loans, because they are seen as a risk and would not be able to comply with the strict repayment schedules. Women experience more difficulties in getting access to financial services because of cultural restrictions. Furthermore, support to build viable businesses and self-employment opportunities for youth and women is lacking.
The initiative will engage in strategies and intentions that offer a combination of financial and technical support to the table banking groups. The financial instruments include top up loans to the table banking groups to boost their revolving fund and enable members to acquire loans for various products such as Biashara loan(business/ micro-enterprises), Elimu loan(education), Ukulima loan(farming), Clean Energy Loans among other loan products.
In regard to non-financial support, RODI will offer the technical training and backstopping in financial transactions, training in financial literacy and management, entrepreneurship and technical skills training. The entrepreneurship and life skills training will form a critical component in helping members venture in income generating activities.