Original Story Published by: Dominic Kirui for Women’s Advancement Deeply
Photo Source: ©Amazon Web Services
In Part 2 of a two-part report on the informal banks that help women secure financial stability, Women’s Advancement Deeply look at the safeguards the women have put in place to protect their pooled resources.
When the local women congregate, they collate their earnings and put the money in a strong metal box they call their village bank. No one is allowed to open the box on their own and if any of the women needs an emergency loan to pay a medical bill or send a child to school, a meeting is convened, attended by all members, who decide whether or not to grant the loan.
This is just one of the safeguards the women have instituted to protect their assets.
After the meeting, the box is locked on three sides, and each padlock has its own key keeper, who lives in a village far from where the box is kept. “This ensures that they are not tempted to open the box and remove the money without an agreement by the group members,” says Bordakhane Sujo, the chairwoman of the village of Loglogo’s savings group.
Rahama Isaak, a member of the savings group who is also a key keeper, says the group has changed her life. The 65-year-old widow and mother of nine says she can now ensure her children go to school without having to borrow money from her neighbors.
“Whenever I encounter any problem, I run to the box, request loans. I also run a butchery business and sometimes when I do not get customers to buy all my meat, I give it out to my fellow group members on credit and they later pay me back,” she says.
This form of collective banking and business is spreading like wildfire, as women across Marsabit County and other parts of the dry north organize themselves and pool their resources in order to establish savings groups.
