BY JOSEPH MUCHIRI

While working as an attendant at a spare parts shop in Embu town, Jane Njeru was constantly flooded with ideas on how to start a similar venture.

She keenly observed the strengths and weaknesses of her employer. What she lacked, though, was capital.

Targeting the poor

 It therefore came as a big relief when a friend introduced her to a ‘chama’ through which she got a  Sh5,000 loan from a microfinance institution to start her own business.

That was more than a decade ago. Today, Ms Njeru, through sheer hard work and determination, has  seen her own shop grow into a major motor vehicle spare parts retailer in Embu.

By strictly following financial advice from experts and exercising prudence in her work, Ms Njeru’s business is now worth millions. She gets and painlessly services loans exceeding Sh5 million.

Just like Ms Njeru, thousands of low-income earners in Gachoka constituency and other parts of the country have benefited from a programme initiated by Plan International in 1992 to uplift standards of living.

The programme mainly targeted the poor. Plan International loaned them Sh5,000 to repay in one year and help their children access education.

Philanthropists

Plan International pulled out of the programme in 1997. To stop the project from collapsing, Business Initiatives and Management Assistance Services (Bimas) was instituted as a corporate. It was headed by nine members from the Gachoka community.

Since the new corporate body was meant for charity, just like the parent body, board members were drawn from philanthropists from the community; people who were deemed caring enough to volunteer their services.

From a small outfit assisting the poor residents of Gachoka, Bimas has spread to many parts of the country today as a microfinance organisation and helped thousands of poor people.

The executive director of Bimas, Patrick Gathondu, says the microfinance institution has given out loans in excess of Sh2 billion to more than 25,000 Kenyans across the country.

Maximising output

“Bimas has focused on alleviating poverty as it deals with the unbanked people and those that commercial banks are reluctant to give loans to for lack of security or a tangible business,” says Mr Gathondu.

He adds that the institution trains people on how they can develop entrepreneurial skills and use them to harness what their environment offers.

Bimas gives loans ranging from Sh5,000 to Sh200,000.

It has also been at the forefront in helping farmers maximise output through best agricultural practices.

Saving culture

“We have officers who tell farmers the importance of keeping grade cows instead of the indigenous breeds that are less productive,” says Mr Gathondu.

He points out that Bimas has also partnered with Daima Energy Company Limited to instal solar energy for residents of Mbeere in Embu County, a programme that is being replicated in other parts of the country.

He says Bimas is keen on promoting a saving culture among Kenyans. In that respect, it has been encouraging people to save at least Sh100 a week.

Initially, Bimas had only one administrator and two credit officers. Today, it boasts of more than 100 members of  staff.