Village Savings and Loaning Clubs

In this project, we regularly train new groups, which then register as official savings clubs. The members meet every two weeks and save money in a community pot. If money is needed, members can take out a loan at a fixed interest rate. At the end of the year, the total savings and interest income is distributed back to the members as a proportion of their paid-in share. Through this, the members receive an incentive to save money and gain access to capital in order to cover unexpected expenses or to venture into self-employment. Currently, a total of 635 members are active in 20 registered clubs.

A lot of families were even able to open their own shops, pay school-fees for their children, start farming-projects or rebuild their destroyed houses.


Similar to a bank, village savings associations give people the opportunity to borrow money in the form of a loan or to save money in certain emergency situations.

Fundamental problem

Often the money There is not enough money for small but important purchases such as the purchase of seeds, school uniforms or school fees. The national banks’ barriers to receive a loan are high. Many are classified as not creditworthy. Families in need, are often unable to pay their children’s school fees for example, as these are high amounts that have to be paid at the beginning of the school year. In other cases, the crop harvests are considerably smaller due to the lack of money for the purchase of seeds.

In order to counter this problem, we have founded and trained village savings associations. We have already achieved great success:

600 people are involved in 21 savings associations and get access to micro credits and interest on their savings.

How village savings clubs work

The members meet every two weeks and can deposit money monthly into a community pot, whereby a deposit is slightly less than 2 €.

However, you can pay in any amount, or nothing at all. If the members of the savings associations need money spontaneously, they can take out a loan at a fixed interest rate of 10%. The loan must then be repaid within one month, including interest. At the end of the year, the entire savings and the interest earnings are distributed in proportion to the respective total deposit. This gives members an impulse to save money and access to capital to cover unexpected expenses or to venture into self-employment.

Helping people to help themselves

The microcredits are used by the members for necessary things such as school uniforms and the renovation of houses, but also to improve their income and thus offer their families a better life in the long term.

We are particularly proud of the many small businesses, such as second-hand shops, vegetable stands or even kiosks, which would not have been possible without the micro credits.

Please support the people of Kenya in founding a savings association.

For –Euro we can train 30 people and found a savings association. With your donation, 30 people will soon receive interest on savings and access to microloans.