KATATA CASE STORY
Katata Parmesa, a dedicated mother of eight, has shown remarkable resilience and determination in her journey. With two of her children sponsored by Kenya Good Neighbors, they are currently studying at Bissil Boarding School and Kilwani Secondary School.
In 2013, Katata began her entrepreneurial journey by selling tea and chapati from a small, grass-thatched house. Despite the humble beginnings, her vision and hard work laid the foundation for her future success.
Recognizing the potential of SACCOs to support and grow businesses, Katata decided to join Ewangan SACCO. She knew from her experiences in Kenya that SACCOs could provide financial support and foster a sense of community. Ewangan SACCO, being close-knit and family-oriented, was a perfect fit for her.
Joining the SACCO significantly improved Katata’s saving habits, which in turn helped her business grow. The perpetual succession of the SACCO also presented an opportunity for her children to be involved and benefit from it in the future.
Katata received her first loan of Ksh 20,000 from the SACCO, which she planned to repay over six months. She has successfully repaid most of the loan, with only Ksh 2,000 remaining, which she aims to clear in September 2024. The loan enabled her to purchase three lamps for resale and further invest in her hotel business.
Katata encourages others to join the SACCO movement, emphasizing the importance of having a solid plan for investing the loans received. She believes that with dedication and a clear strategy, SACCOs can be a powerful tool for business growth and financial stability.
Katata Parmesa’s story is a testament to the power of community support and financial planning. Her journey from selling tea and chapati to running a successful business with the help of Ewangan SACCO is an inspiring example of what can be achieved with determination and the right support system.
PENNINAH CASE STORY
Peninah Kapao, a devoted mother of seven from Kajiado Bissil, exemplifies resilience and community spirit. Four of her children are sponsored by Good Neighbors, highlighting the importance of community support in her life. As a businesswoman, Peninah began her entrepreneurial journey seven years ago, selling goats and sheep. Despite facing challenges such as purchasing sick livestock, her determination never wavered.
When Sidai Ewangan Sacco was formed, Peninah joined and was elected Treasurer. This role allowed her to contribute to the Sacco’s growth and provided personal and business development opportunities. Through the Sacco, Peninah secured a loan of Ksh 30,000, which she used to expand her livestock business. Initially, she could only purchase five goats or sheep at a time, but now she can buy over ten, significantly boosting her income.
“The Sacco has been a game-changer for me,” Peninah shares. “Before joining, I struggled to expand my business. Now, I can buy more livestock, and my profits have doubled.”
The increase in her profits has enabled Peninah to cater for her family’s basic needs. With her business success, she plans to diversify her income by starting another business once she completes her current loan. Peninah’s story is a powerful example of how joining a Sacco can transform lives. She encourages others to join Sidai Ewangan Sacco, emphasizing that unity is strength.
“I advise everyone to join the Sacco,” she says. “Unity is strength, and together we can achieve so much more.”
Peninah’s dedication extends beyond her livestock business. On Tuesdays and Fridays, she actively participates in market days, while on other days, she engages in beadwork, adding another stream of income to support her family.
“Beadwork is not just a hobby for me; it’s another way to ensure my children have everything they need,” Peninah explains.
Peninah Kapao’s journey is a testament to the power of community support, resilience, and the transformative impact of financial inclusion through Saccos.
Hamafuki Riders Sacco Society Ltd
Hamafuki Riders SACCO Society Limited, based in Mukuru Nyayo, Nairobi, is a beacon of hope and empowerment for boda boda riders. Established with the mission to foster financial independence and mutual support among its members, the SACCO has grown into a vital community resource. This case story explores the journey, impact, and future aspirations of Hamafuki Riders SACCO.
Formation and Growth: Hamafuki Riders SACCO was founded in response to the financial challenges faced by boda boda riders. Recognizing the need for a structured savings and credit system, a group of visionary riders came together to form Hamafuki SACCO. Through collective effort and a shared vision, the SACCO has grown steadily, attracting more members and expanding its services.
Empowering Members: The core strength of Hamafuki Riders SACCO lies in its ability to empower its members. By providing access to affordable loans, the SACCO has enabled many riders to purchase motorbikes, thereby achieving self-employment. The lower interest rates and the return of interest as dividends at the end of the year make borrowing from the SACCO more attractive than traditional banks.
Innovative Financial Solutions: Hamafuki Riders SACCO is committed to innovation in financial solutions. The introduction of asset financing has been a game-changer, allowing members to acquire motorbikes and other assets essential for their livelihood. Additionally, the SACCO has embraced digital platforms for loan repayment and account management, making financial transactions more convenient and transparent.
Spare Shop and Employment: In addition to financial services, Hamafuki Riders SACCO operates a spare shop that provides essential services to both members and the general community. The shop employs five staff members: three mechanics, one administrator, and one shop attendant. This initiative not only supports the SACCO members but also contributes to local employment.
Future Expansion and Training: The SACCO is working on opening another spare shop and plans to employ an additional shop attendant. In partnership with Auto Industries Kenya, Hamafuki Riders SACCO is looking forward to opening a workshop and mechanical training center. This center will offer affordable training for youths from the local community and its environment on motorbike mechanics. Upon completion, trainees will be accredited by Auto Industries Kenya and will have the opportunity to sit for NITA exams.
Community Impact: The impact of Hamafuki Riders SACCO extends beyond individual members to the broader community. By promoting a culture of saving and financial literacy, the SACCO has contributed to the economic stability of Mukuru Nyayo. Members are not only able to support their families but also invest in community development projects, creating a ripple effect of positive change.
Success Stories: The success stories of Hamafuki Riders SACCO are numerous and inspiring. Members like Haron, who transitioned from a commission-based job to owning a motorbike and registering with Jumia delivery services, exemplify the transformative power of the SACCO. These stories highlight the resilience, innovation, and determination of the members.
Future Aspirations: Looking ahead, Hamafuki Riders SACCO aims to expand its membership and diversify its services. Plans are underway to introduce new financial products tailored to the evolving needs of the members. The SACCO also envisions playing a more significant role in community development, leveraging its collective strength to drive social and economic progress.
Conclusion: Hamafuki Riders SACCO Society Limited stands as a testament to the power of collective effort and mutual support. By providing financial solutions and fostering a culture of saving, the SACCO has transformed the lives of its members and contributed to the development of the community. The journey of Hamafuki Riders SACCO is a story of empowerment, innovation, and hope for a brighter future.
From Commission Worker to Self-employed
Haron’s Journey with Hamafuki Riders SACCO
Introduction: Haron, a diligent worker, was once employed by a businessperson to sell
second-hand clothes. His income, ranging from KES 100-400 per day, was solely based on commission, and there were days when he earned nothing. Despite these challenges, Haron harbored a dream of becoming self-employed.
Joining Hamafuki Riders SACCO: Haron’s life took a turn when he learned about
Hamafuki Riders SACCO through a friend. Intrigued by the opportunity, he joined the
SACCO and began saving diligently. In 2022, the group applied for asset financing. The
SACCO’s application was successful, and they received a loan in the form of motorbikes.
Achieving Self-Employment: Receiving the motorbike from Wezesha Majirani SACCO
marked the fulfillment of Haron’s dream of self-employment. He found borrowing from a SACCO more advantageous than banks due to the lower interest rates. Moreover, the interest paid by members is returned to them as dividends at the end of the year, making the financial burden lighter.
Haron’s story stands out because of his innovative approach to increase his income. Besides operating the boda boda to transport passengers, he registered with Jumia delivery services. This decision allowed him to earn extra money to pay his bills. The weekly deposits from Jumia into his account provided a reliable and convenient source of income. Haron’s future plan is to apply for another motorbike and rent it out once he clears his current loan. His story is a testament to the power of determination, innovation, and strategic financial planning.
Clara Moraa and Riariote SACCO
Introduction: Clara Moraa is a member of the Tendere A saving group, a collective of thirteen small and medium business owners. The group was established in 2021 following the registration of Riariote SACCO. They convene twice a week at a small shopping Centre in Ogembo CDP. Clara’s commitment and excellent saving habits led to her appointment as the group’s secretary.
First Loan and Business Expansion: In 2022, Clara applied for her first loan of KES 60,000 when Riariote SACCO received its initial loan disbursement. She invested in a small dairy cow and used the remaining loan balance to expand her shop’s inventory. This strategic move attracted more customers, as they could now find all the items they needed in her shop. Clara diligently saved and repaid her loan, which she fully settled in May 2023. “My income has increased, and I am able to buy Napier grass for my cow and pay the caretaker KES 200 daily,” Clara shared during an interview. She sells milk to the local community every morning and evening.
Second Loan and Community Impact In June 2023, Clara applied for a second loan of KES 100,000. With this, she purchased a posho mill and an additional cow. She identified a need in her community, where members had to walk many kilometers to the shopping Centre to mill their maize, often late in the evening. She sold a calf and used the proceeds to construct a space for the posho mill.
Improved Livelihood Since taking the two loans, Clara’s life has transformed significantly. Her daily income has increased from KES 350 to KES 1,250. She can comfortably repay her loan, save KES 1,300 per week, pay her children’s school fees, and provide food for her family.
Advice to Other Members and Future Plans Clara advises other members to aim higher in their savings to qualify for larger loans and make significant investments. However, she cautions that one should survey the business market to make informed decisions. Her shop’s income has increased, and she earns extra income from milk sales. Clara aims to settle her second loan by mid-2024 and apply for a larger loan to open a cereals wholesale shop at the shopping Centre.