Village ‘stock exchange’ changing lives

By Mangoa Mosota

There are ululations, clapping and dances of joy. On the table are bundles of notes and coins.

It is ‘harvest’ time for shareholders and every member is anxious to get their money.

The excitement is visible as Mingori Mbare Women Group (MMWG) members wait anxiously to share out their dividends at a village in Nyakach District.

The 35 members are of diverse age from 20s to 70 years.

The group started as a ‘chama’ where women contributed a few shillings to buy household items, but has grown to a lending and savings scheme but with dynamics of share holding.

The village ‘stock exchange’ scheme, as the members like calling it, has helped many women, most of whom bear the brunt of poverty in the area, start businesses.

"Through this scheme, we can also advance loans to our husbands if they are not members," says one of the members smiling.

Though the women have little knowledge of how the Nairobi Stock Exchange works, they say the group is fashioned along those lines.

"Unlike at the Nairobi stock exchange, our members get dividends at the end of every year," says the member.

MMWG members have invested Sh177,250 in the last ten months. But recently, they shared out Sh239,205. This means that their investment created dividends of Sh61,955, a modest sum in a typical rural setting for women trying to eke out a living.

Good dividends

Ms Ruth Ondu, 23, is one of the youngest members and has the highest returns.

Ondu had invested Sh15, 400 since mid last year. And when the members shared out the money early this month, she received Sh20,440. Her dividends totalled Sh5,040.

"I am glad my investment has born fruits. I will invest Sh10, 000, and use the rest to assist my siblings. I plan to pay school fees for a sister joining Form One," says Ondu, a hair-dresser in Sondu Trading Centre, Nyakach District.

She contributed an average of Sh250 per week, but steadily increased the amount to Sh500.

The oldest member of the group, Matilda Odongo, 70, invested Sh4,200. She received slightly above Sh5500.

"I contributed about Sh100 every week by selling Omena (small fish) at Sondu Market," says Odongo who is widowed.

Pamela Buodo, Odongo’s daughter in-law, is the chairperson of MMWG. Buodo invested Sh7700, and received Sh10, 000, at end of the cycle.

She says the scheme is more than a chama because there are dividends and each member contributes according to their ability.

"Those who take loans have to repay the amount within a month, with additional ten per cent interest," says Buodo, a mother of five.

The group was formed last.

"Although a full cycle of saving and loaning should be one year, we decided to end it before completion of the entire period," she says.

One of the reasons was to enable members with secondary school going children to pay fees.

"Others wanted to buy seeds and other requirements to prepare for the planting season," she another member.

There are several groups in Nyanza working under the same scheme. A Swedish organisation educates members on money collection and management before groups are formed.

"Members are screened to ensure only serious people are allowed to join groups," says Wangu Mutua who is a forestry project manager in Nyanza with Swedish Cooperative Centre. The organisation supports farmers’ schemes through capacity building and supplementing their prerequisites such as passbooks used for record keeping.

The savings start as low as Sh50 per week, but members are encouraged to save more to get more shares in the group.

Besides contributing money, members are trained on various skills like planning, book keeping and other essential for running a business.

Joining the scheme

Mr Michael Wamalwa, the Swedish Cooperative Centre zonal coordinator for Lower Nyakach, Upper Nyakach and Nyando divisions, says locals are persuaded on the benefits of forming and joining such schemes.

"After the residents register, they are taken through some accounting skills, especially the ledger system. Lastly, they form a constitution, which all members have to abide by," explains Wamalwa.

The groups also provide social funds for emergencies such as funeral expenses and sickness.

The groups are registered under the Ministry of Social Services.

Rose Ong’owu, the chairlady of ‘Haki na Ukweli Women Group A’ says she received Sh21,000 after share of investment in the last cycle –– the group is currently in its third cycle.

"I will use the money to buy a bull and the rest to expand my second-hand clothes business," says Ong’owu.

The 48-year-old widow says she has also improved on proceeds on her three-acre piece of land, where she cultivates crops such as potatoes, beans, cassava and maize.

The group in Dirubi village, Nyakach District, has a membership of 90, divided into three groups A, B and C.

Future plans

Wangu says to ensure the groups are well-managed their membership is 30 on average.

"For instance, each of the Haki na Ukweli group has 30 members. This ensures a close knit group, with limited leadership wrangles," says Wangu.

Wangu and Wamalwa say there are loans although saving programme faces some challenges.

"The membership consists of about 80 per cent women. Men are yet to embrace the scheme. I feel some of the men believe the method is a merry go-around system, hence a women’s scheme," says Wangu.

As the groups expand, they are considering saving the money in banks since at the moment the money is not in safe deposits.

"This means there is danger of thugs targeting the money. We have approached two banks so that they can keep the funds, as the cycle nears maturity," she says.

The project started operation in Kenya over 25 years ago in Kitale.

It has since then extended along line Lake Victoria Basin to offer enterprise skills to farmers.

"I am happy with the zeal of these women. Without saving, they may not be in position to empower themselves," says Anni Grosse, a programme officer with the Swedish Cooperative Centre, who visited some of the groups, earlier this month.