Kericho Community Development Trust is a Microfinance program of the Anglican Church of Kenya, Diocese of Kericho which started in October 2016 from a partnership of the Diocese of Kericho and Five Talents UK. The Diocese of Kericho through the leadership of the Bishop Rt Rev Ernest Ngeno and KCDT secretariat has managed to form Trust groups in the Diocese that are purely savings led.
The vision of KCDT is “to become the leading institution in Kenya in financial services and enterprise development for an economically empowered society”
The mission of KCDT is “To economically empower the community within Kericho Anglican Diocese to save, access credit and engage in sustainable and viable business activities through diversified trainings and access to financial services thereby contributing to poverty alleviation, promotion of justice and the establishment of the Kingdom of God”
Kericho Community Development Trust is a network of groups formed under the parishes. By using this structure the church ensures accountability and transparency. Although the process of starting a Trust Group always begins in the Anglican Church and therefore within the Anglican Church membership, it is open to the whole community. The communities have a lot of trust with the church and therefore are not worried that their money may be lost or misappropriated.
Since initiation of the program the groups have continued to increase in the past 30 months. With this trend the secretariat of the trust has to upscale the trainings to cater for the new groups and also monitor the growing groups in the field to make sure that the groups are maintaining the right records and financial
HOW KCDT OPERATES
Kericho Community Development Trust uses the Accumulating Savings and Credit Association (ASCA) model which intends to provide a form of holistic care through economic empowerment. The Kericho Community Development Trust staff present the model to the Church. If there is enough interest in the Church, the staff will return on a monthly basis to facilitate the group’s formation. As part of formation, each group elects its own management committee to oversee the running of the group.
After the formation they commit to build social capital together for six months before anyone in the Group can borrow from their savings. During this six month period, the Kericho Community Development Trust staff provide training on different topics in order to help the Group thrive individually and corporately. These topics include but are not limited to the savings, borrowing, group leadership, group dynamics, basic financial literacy and basic business management skills. At each monthly meeting, there is a mandatory savings contribution, the amount of which is decided by the group and is set at an affordable level for the low income members of the community
KCDT uses Chalmers training manual to train on business skills and lessons are mainly bible studies and group discussions. These lessons give members chance to come up with good business ideas, relate the importance of business planning to Biblical stewardship, and practices of good business people to apply to their businesses.
It also engages experts to tackle financial management skills so that members are able to manage finances well.
KCDT is now working with FFS in offering trainings to dairy farmers and those in Agri business and is ion the process of negotiating for cheap farm inputs through FFS.
KCDT has identified groups ready for beekeeping, horticulture and dairy farming. These groups have been trained on the same and one group is ready to engage in beekeeping whereby there is a ready market for the honey and it’s by products
KCDT curriculum is mainly dictated by the needs of the Trust Groups
KCDT BENEFITS TO THE CHURCH
- KCDT members are members of our churches. By economically empowering them, they will be able to engage in meaningful income generating activities that will enable them get what to bring as tithe and offerings in church.
- Dividends will be shared annually and some percent will be remitted directly to the Trust Group host church Parish.
- KCDT uses Bible studies to train. Members are able to interpret scripture deeply and relate it to doing business to the glory of God
- Lives being transformed. There are groups with members who are struggling with addiction and we have seen them being transformed and they are faithful members of the groups.
- Why KCDT uses Group lending methodology
To enhance peer support of helping one another in case one fails to pay off the loan. Most of KCDT clients cannot afford to guarantee loans through pledging valuable assets (no collateral/surety is asked for). It offers a learning ground, especially when group members are ready to share business experience.