The microfinance movement has been a force for good in world full of experiments in poverty alleviation. Its impact on reaching the bottom end through breadth and depth of outreach cannot be gainsaid. Its impressive growth world over in the last two decades and its current momentum attest to a sector whose potential was unprecedented. Currently the sector is on its march to commercialization and seeking greater permanence and greater penetration in the country.
However, microfinance in Kenya today is facing some daunting challenges than ever before. One of the major challenge is the emergence of a new set of clients that previously had not been served by the sector in Kenya. These are the internally displaced persons (IDPs). This is a fluid group and new to MFI managers but which actors in the industry ought to give a thought. If the current political mistrust could advise on the future, then this is a group of people who may be in their current status for years.
Sooner than later, these people will accept their status. They will realize life, no matters its egotism and unfairness has to go on. Every morning they wake up, they are confronted by the realities of life: they have to feed their children, provide education to their children, take care of the medical bills – essentially the fact of life is - they have an obligation to meet the basics of life. Well wishers can only do too much. They have to start living again, no matter what fate has visited on them.
Granted many may not be entrepreneurs, many may have never received loans in the past, and their only experience is what they do best – farming. Its time they took a different shot at life. This is evidenced by the circumstantial status and options available to them. They shall lead a different life all together (majority of them). One of the options is to integrate them into trading activities. If well assimilated these could be the owners of capital tomorrow, in any case enterprise thrives where there is adversity.
Question of the Week – Does microfinance got a role to play to get these poor souls out of their current quagmire.? How feasible is it to serve this group with innovative products? Is it practical? Comment below!
Source: Charles – Blog moderator
5 comments:
Charles,
I think this is a great piece. Its time we as managers of microfinance institutions responded to the needs of the poor we always strive to serve with passion. I think there are over 400,000 IDPs, assuming an adult population of 100,000 and out of this 20% (20,000) have entrepreneurial abilities. My take is this could be an MFI by itself. How innovative can MFIs be? You have just thrown a challenge. I bet it can be done. We have what it takes to serve these people.
Chris
Hi,
I bet this is a very fluid group as you have just stated. Am not sure any MFI would willing to work with them. It does not look feasible. Until they stabilize, they may need charity, not microfinance. All the same, its great you are bringing these issues. We need to challenge each other. Its an issue of innovation as chris has said.
There is no hope for this group. Hawa ni watu wa kupewa charles. Only possible to work with them when they go to their villages. For now microfinance is not an option.
Thats my advise
Liza
Charles,
Dont be a pessimist. We now have the cabinet in place. Am pretty sure these guys will settle the IDPs fast. All the same, it would be important for us as practioners to see how financial services can respond to crisis situations.
Asante,
Charles,
The blog gas started well. Am impressed by the issues and news you are bringing. Hope sooner than later the leadership will increase so that we can get all shades of opinions. Will be visiting often.
On IDPs, i bet the issue is relevant, but we have never deealt with conflict in the past and am not sure any MFI would like to jump on board and work with this king of clientele. The current challenges facing MFIs are so daunting. Recovering fo rthe lost portfolio and getting loan officers to stabilise. But the issue is alive. The numbers as calculated above indicate there be need.
John
Post a Comment