MICRO FINANCE

In any of Nairobi’s 26 slums, the households are poor and face lot of constraints when it comes to investing, saving and protecting their livelihood, majority are women and children. The effects are felt deeply in a sense that children are thrown away, abandoned, abused or neglected. The financial intermediation from Home of Hope is very significant for them – the teen moms, single moms and children. Home Of Hope Kenya is devoted to find a considerable solution to this problem. There are many low financial solutions available to low income groups around their local area, though most of it charge sky high interest rates and requires an asset as a mortgage. But many families who do not own personal property cannot access this route. The micro finance section of Home Of Hope Kenya is trying to provide a convenient, reliable, continuous and flexible range of services in its new strategy to revamp the Microloan funding.

Our target groups include the increasing number of pregnant teen moms and single mothers, the current cart business women and Stella women.

Small Microloan Groups (SMG) have been formed for people who have common background. These are people facing similar financial constraints and who are interested in improving their livelihoods. Groups usually consist of 5 members. This small size is preferred as it allows members to easily build trust and cohesion, to meet regularly and to manage finances and record keeping. Members of SMG are issued with a set of rules, regulations and procedures on how to go about their business. Home Of Hope Kenya assess maturity of the SMGs every three months using a standard organizational assessment tool.

The group has common fund— set up initially through members’ savings, which serves as a financial resource base. The common fund is set up immediately each group access loan from Home Of Hope and provides further loans to SMG members and earn income from collected interest on loans. Extensive training and support to the SMG groups is provided by Home Of Hope Kenya through its trained field staff using basic concepts of business entrepreneurship.

Fundraising is done on social media to try to cover the increasing enrollment number of poor women to the program

Home Of Hope Kenya builds sustainability on two fronts – capacity building of the SMGs and financial services provision for poor women. First, program activities and the SMG administered governance structure develops independent management skills for the SMG Microfinance Groups. These skills continue beyond the funded program life and enable women to continue income generation activities and group leadership roles.

SMG groups is  sustained through better financial management skills and capacity building training given by Home Of Hope Microloan Fund and the opportunity to engage and expand their business enterprises through access to higher amount of loans from the wholesale lending program.

Home Of Hope Kenya’s Program Manager has the overall responsibility to manage the program. Home Of Hope has well established financial and program monitoring systems to ensure the highest standards of transparency and accountability in its operation