Poor families in Kenya are planning for the future now, and say they have more peace of mind. Why? Because they are more confident that they can change things. They’re earning more money, getting better jobs, and decreasing their debt. They got there with a combination of savings groups, training, and a financial cushion that let them take more risks. The risks are paying off.
The PROFIT Financial Graduation project ran from 2016-2019 with $1.8 million in funding from the government of Kenya. CARE reached more than 1,000 families in the Kitui district of Kenya.
What did we accomplish?
- Families have more money: Income went up more than 5 times, from 28 cents a day to $1.63 a day. Savings went up nearly 40 times, up to $173. Income is also more diverse, helping cushion families if there’s a crisis.
- Women feel more confident: Self-confidence went up 27% with project participants. At the same time, people who weren’t in the project had their confidence go down by 22%. Two important areas where participants felt more confident were that they can get help in an emergency, and that they can plan for the future.
- Families have more food: Families eat one more meal a day now than they did in 2016, and now they can eat nearly 3 meals a day. Families in the project also grow on average 70kg more food a year.
- Women are taking more leadership roles: 44% more women are taking on leadership roles, and women are 20% more likely to be making decisions at home.
- Businesses are stronger: Businesses are making 20% more in value than the amount the project invested in them. And 97% of business are still running after two years.
How did we get there?
- Give people a cushion: People said that increased income helped them become more confident and take more risks, which ultimately led to stronger businesses. That included a $15 per month stipend for the first 6 months so families knew they had something to fall back on.
- Use savings groups: The project supported people in VSLAs, which meant they had more savings, the ability to get loans, and financial and business training.
- Help people access social services: The project worked to get participants 18 months of free access to the national health insurance system, and to make connections with health, financial, and government services. This was especially important for the youth in the program to see how they could access support.
- Help with start-up capital: People got $350 worth of cash or in-kind support at the beginning to help start businesses. They were able to grow their business value by 20%, and 97% of businesses are still running.
- Combine efforts: The project combined nutrition and health training with income and financial growth. People said this was an especially powerful tool to help them change their behaviour and get healthier, better food.
- Work with local leaders: The project coached local government officials and village chiefs on working more supportively with youth and women to make sure everyone could participate. Women especially said they are much more likely to be invited to important community meetings now.
Want to learn more?
Read the final evaluation.