One of the greatest challenges of the community is financial access. Most people have good business ideas but lack access to finance. It is one thing to provide individuals with skills but it is important to ensure that they have the resources to start and sustaining those businesses. Most of the banks require the collateral to advance facilities and the people in this community lack access to these. It is noteworthy the job available are limited since Kenya has even graduates can’t find jobs.

Mobile lenders and other microfinance institutions have also infiltrated this areas however most of those who are profit oriented are unregulated and one only digging people into bigger holes as well collapsing this small business with their extortive interest rates. The rates range from 10% per month to almost 100% interest rates per month.

This means to be responsive and really help this we need to help them gain access to finances as well encourage a savings culture in them. We plan to pool finances for lending to graduates of our business school who are either in business or starting business. The funds will only be charged a management fee and not an interest. The lending will be structure using group collateral and introduction of a regular saving. This will help the members not only gain access to finances but develop a saving culture as well at one time pool enough resources such that the groups can lend their own funds. The group aspect will bring in a community aspect to help each member gain from the diversity of the membership.

The final aspect of the microfinance will to ensure the staffs who work for the fund has sufficient business management skills and financial skills such that can provide support to the beneficiary with business management and financial management to ensure the loans advanced are repaid and the business are successful.

You can assist by donating funds to the microfinance pool, funding a training session or any other method you see fit. https://www.paypal.com/donate?hosted_button_id=VTGCZN8DS5Z8Q

To find out more you write to microfinance@beroya.org

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