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Living the promise

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Village Saving and Loaning Association

VSLA (Village Saving and loaning Association) is a new initiative meant to work with the groups, where the target is entirely Undugu Society of Kenya beneficiaries who are parents, guardians and youths. Each of the groups comprises of 15-30 persons who have a common objective and hail from within the same geographical area.

The members of the groups come up with a constitution which addresses their interests as well as penalties for those who go against what the constitution stipulates.

The savings each member contributes comprises of shares, whereby, each member can own a minimal share of one and a maximum of five with each share being equivalent to certain amount depending on what members of a group agrees upon.

Members are allowed to save their shares for a period of 3 months where the group undergoes 7 module training. During this period, members get a chance to mingle and understand each other well, hence, they are able to build on trust towards one another.

When the groups have saved enough monies members start loaning each other depending on the amount of savings they have.

The groups are also able to register through the ministry of Labor, Social Security and Services  and are able to access various funds such as, Youth Fund, Uwezo Fund and Women Fund respectively. The Main objective of the VSLA concept is to empower members socially and economically.

VSLA has been working in the following areas.

  • Pumwani
  • Mathare
  • Korogocho
  • Kibera
  • Associations located in BuruBuru, Dandora and along Thika road.