Village Savings and Lending Association- a community life transforming Initiative in Lobarishereki.


Nalare village saving constitutes of 14 members (4Male, 10 Female) all living in lobarisherki village in Oldonyiro sub location. The village is in a region marred by frequents shock by droughts and sometimes floods. To its arid like weather conditions, crop farming in not feasible with pastoralism as the main source of livelihoods for most of the households in the region. Competition over the scarce natural resources has continually led to conflict which curtails to pastoral mobility, undermines productivity and makes chronic food insecurity more acute. Resource based conflict are not only occurring between people but also between people and wildlife in the area. Caritas Isiolo through CAFOD introduced Village savings and lendings association (VSLA) as an alternative source of income for the household to help boost the household incomes. A VSLA is a time-bound accumulating savings and credit association (ASCA). In it, 15 to 30 people save regularly and borrow from the group fund. Loans are repaid with interest, and have a period usually between one and three months. On a date chosen by the members, usually after about a year, all the financial assets are divided among the members in proportion to each one’s savings. This pay-out is called the “action audit”. The groups normally re-form immediately and start a new cycle of savings and lending. Elizabeth lakalapi, a mother of two was able to start a business using a loan worthy 12,000 she lent from the group.’’ Kupitia kwa hiki kikundi Niliwezakuchukua mkopo kwa haraka na urahisi bila mashariti mingi kama ya benki. Kitambo nilikua nakopa familia na marafiki zangu, na wakati mwingine ilkua ngumu sana kulipa hii mkopo- Through this savings group I was able to secure a lean easly and over a short period compared to banks, Before I joined VSLA my main source of credit was from family members. I always struggled to pay back such loans’’ says Elizabeth. With her shop and drinking joint in the area, she accumulatively makes a profit of 4,600 shillings per week. Through this she has been able to freely pay her son Daniel Lekalapis School fees and buys foods of her choice in Oldonyiro market. She is looking forward to investing more money in the group to enable her to secure a huge loan in order to expand her business and start a Shanga'(braids) business in the local market. ‘’I see my life and that of my family change for the good through this group’’ says Elizabeth. God bless Caritas