Kenya - Thika[39] Thika Community Development Trust - Revolving Loan Fund Project value: 20400 USD
Funding sought: 0 USD
Project status: Active
Status DatesDate project entered into database: 2008-05-23 09:07:07
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The town of Thika, about 45-minutes from Nairobi, is a microcosm of what has happened in this country. It has experienced a dramatic increase in population in the past 10 years, leading to more families living in the streets, higher incidence of HIV/AIDS, and heightened insecurity. It is the administrative center for the Thika District, which has a total population of 900,000 people. One-third of this population lives in the urban area. With the loss of the large industrial plants, it is left to the entrepreneurs and small business owners to rebuild the economy. The Anglican Diocese of Thika through her wholistic mission is committed to the improvement of the socio-economic standards of the community within Thika Diocese, through a partnership between the Diocese and the community at the Parish level here in after referred to as Trust Groups, to participate in Microfinance program activities following the Accumulated Savings and Credit Association approach. Through this partnership, The ACK Thika Community Development Trust (TCDT) has established 12 Trust Groups with an outreach of over 600 members who are direct beneficiaries and over 3000 secondary beneficiaries. The trust Groups follow the Accumulated Savings & Credit Association model. The specific objective of this project is to enhance the capacity of the TCDT’ to establish a Revolving Fund, where Trust Groups can access loan funds on wholesale for on ward retailing. Initially, ten Trust Groups will participate in the Trust Groups Loan Funds capitalization, and lend out to their members for entrepreneurial and business development projects and activities. Project Details: With Rotary funding and oversight, the TCDT will establish a Revolving Fund pool for loaning to Trust Groups on a wholesale basis,- who then retail to their members-, following the Trust Groups loan application and processing guidelines. The Trust Groups qualifying for the funds have to be members of the Revolving Fund pool through share contributions in the pool. A Trust Group will qualify to borrow three times its share capital in the pool fund. For a Trust Group to qualify for loan funds, their savings will guarantee a third of the loan taken. The rest two thirds will be guaranteed by the Trust Groups’ parish and a friendly Trust Group. This approach is expected to avail loan-able funds to the Trust Groups by supplementing what they have internally harnessed. It is also expected to enhance local ingenuity capacity, promote social cohesiveness, groups’ enforceability and interdependence. Loan repayment period will be spread as follows;- • Amounts below KShs100,0000 (US$1386) 6 Months • Amounts from KShs100,000 – 250,000 (US$1386-US$3466) 1.0 Year • Amounts from KShs250,000 – 500,000 (US$3466-US$6931) 1.5 Years The funds will borrowed at an interest rate of 8%p.a. The interest generated will part finance the administration of the loan fund costs. Trust Groups will on lend to members at 12% p.a. Revolving Fund Administration: The Revolving Fund will be administered by the TCDT registered Trustees. For ease in vetting and processing the loans, a Loan Review Committee will be formed, whose duties among others will include, receiving, vetting and recommending applications, reviewing reports from Trust Groups, making on site inspection visits, and presenting reports to the TCDT Trustees, The Loan Review Committee will be composed of nine members who will include-; i) The TCDT C.E.O and the Field Officer ii) Two registered Trustees of the TCDT iii) Three representatives from the Trust Groups elected during an Annual Delegates Conference. iv) Two representatives from the local Rotary Club (during project implementation period) During the project implementation period and prior to relinquishment of its authority over the Revolving Loan Fund, votes, decisions, resolutions or other propositions by the Loan Review Committee will require at least one affirmative vote from either of the two Rotarian representatives for approval; failing to secure such support will constitute a veto.
Primary Host Partner in the Project CountryClub: Thika
Primary International Partner outside the Project CountryClub: Denver/Lake Norman
Project Coordinator:
Champions:
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