Reaching the Poorest in Kenya through Savings Groups

Paul RippeyFellow, Carsey School of Public Policy

Advisor, FSD Kenya, FSD ZambiaCo-Founder, editor Savings Revolution

Two reasons to reach the poorest

• We say we do

• The poor need to save more than anyone else.

– One way out of poverty is simply to have money

– Saving builds assets

SGs and the poorest

• Kenya data may not be relevant to other countries and other contexts

• SGs reach the poor, but struggle to reach the poorest

FSD Kenya Quality of Delivery Study

• Field work – 2013• Conducted 1,370 household interviews• 463 households had at least one SG

member• Viewed 100 SG meetings, interviewed 50

trainers. • Interviewed 86 former members

FSD Kenya Quality of Delivery Study

• Reason most often given by former members (37%) for dropping out: “Couldn’t afford to save”

• Corroborated by Group, Trainer and Member interviews

Below poverty line Bank account "Formal other" (Sacco, cell phone)

Own cell phone

28% 27%

43%

88%

30%24%

32%

71%

Wealth indicators from FSD KenyaQuality of Delivery Study

SG Members Non members

Some quotations from SEEP Social Performance Study interviews

(2014, Interviews by Paul Rippey and Eloisa Devietti)

“Better off people are early adapters, but the poor eventually join” (Maybe not true everywhere)

“It’s not that we systematically exclude the poor - it’s that we don’t make the effort to include them”

“Kudos to many trainers who have gone repeatedly to villages to encourage poor people to join SGs”

“Social grants level the playing field a lot"

CRS Working to Include Poor Better

• Pro-poor messaging, both with villages and trainers

• Re-examining incentives

• Doing institutional mapping to look for pro-poor program partners, including Cash Transfer programs

The interesting case of Savings Groups and the Hunger Safety Net Program in

Northern Kenya

Northern Kenya, a special case

The Hunger Safety Net Programme – HSNP – is a GoK/DFID program in the North of Kenya where

semi-pastoralists have been suffering from changes in climate.

Northern Kenya, a special caseHSNP asked CARE to select recipients of cash

transfers, which were initially Kshs1500 (about USD17) per month and since were raised to 2000.

Northern Kenya, a special case

With support from FSD Kenya, CARE formed Savings Groups, with no reference to whether members

were HSNP recipients.

Northern Kenya, a special case

In fact, there was there is little difference between recipients and non-recipients. Sharing the wealth is a strong cultural value, and social obligations lead recipients to distribute their money widely within

the village

CARE simplified meeting procedures, record keeping, and training to reduce travel time and cost.

There is anecdotal evidence that

program has positive social impact and

good group survival – but no data.

Thank you!

www.Savings-Revolution.orgPaulRippeyPDX@gmail.com