Savings For Life Program

In July 2014, MCO started the process of implementing a savings scheme christened “Savings for Life” to address economic empowerment for most vulnerable persons in the Mathare slums who lack basic financial services. One year since inception and MCO through the program has brought together over 500 parents and the community at large, forming 30 groups with the common interest of studying the word of God, saving as well as borrowing loans.

 

The strategy of working with the community especially churches as well as other existing community structures as the entry point has proved effective. 7 local Village Agents from the groups are working with the SFL staff who serve as community based volunteers meant to form additional groups as well as ensure sustainability even after the 9 months of training period is complete. SFL staff and village agents train the groups on how to build and manage their own savings and credit groups for a period of 9 months in 3 phases i.e Intensive, Development, and Maturity phases, through a well thought through manual. Group funds are generated from member’s own savings and through their weekly meetings of savings and training using a special savings box, members can borrow loans up to 3 times their savings and return within 3 months of borrowing with a 10% interest. Reasons for borrowing are mainly for school fees and business expansion as well as meeting other obligations that they were unable to meet before joining the SFL groups.

 

 

The overall goal is to see poor and vulnerable community members having developed abilities to sustain themselves and reduce dependency culture. The program is also focused on empowering women in the community to leadership positions and decision making in their households. A point of reference is from the book of Proverbs 30:24-25 which says; four things on earth are small yet they are extremely wise: ants are creatures of little strength, yet they store up their food in the summer. Then Man, who has a special relationship with God, should store better.

 

 

A major constraint to empowerment initiatives is the attitude of community members who prefer to be given grants and handouts instead of engaging in productive activities aimed at self-reliance. The program approach which is being adopted is a commonly used model which is proving to be successful as they focus more on economically empowering the community both at group and individual levels.