(KENYA) Mr. Isaac Njuguna is a 34 year old father of two, living in Ng’enda, Kenya. He supports his wife, his nine-year-old daughter and his infant son as a horticultural farmer. There was a time when he struggled a lot to do this. He worked hard and had big plans to make his work fruitful, but that wasn’t enough.

He supports his wife, his nine-year-old daughter and his infant son as a horticultural farmer. There was a time when he struggled a lot to do this. He worked hard and had big plans to make his work fruitful, but that wasn’t enough. Mr. Njuguna needed access to financing to make his plans a reality.

When World Renew helped his community establish a bank, his hard work and big plans had a chance to pay off.

For people living in rural communities who don’t have access to banks, or are not able to borrow money from traditional banks, a community bank is a life changer. Owned and operated by its members, a community bank helps people save money and also borrow, at rates that are possible.

Mr. Njuguna is a member of Njagu Community bank. Started three years ago, with funding from the Northern Alberta Diaconal Conference and support from World Renew Kenya, Community Bank of Ng’enda now has 400 members with a combined savings of up to 8 million Kenyan shillings (almost $77,000USD)! The bank now issues loans averaging 500,000 KES ($4,845USD) per month and receives the same amount in loans repaid by members each month.

Since its inception, the community bank has loaned almost 10 million KES ($96,900USD), all of which has gone to promote the local economy, especially agriculture. Mr. Njuguna is an active part of that local economy.

He started with a loan of 30,000 Kenyan shillings (KES), or $290USD, which he invested in his tomato farm. From that season’s harvest, Mr. Njuguna made a profit of 50,000 KES ($484USD) and repaid the loan. After that he took out another loan of the same amount and used it to double the size of his farm to one acre, do a water pan, and install drip irrigation on his farm, all of which resulted in a profit of 150,000 KES ($1,435USD)!

Mr. Njuguna’s third loan of 255,000 KES ($2,471 USD) allowed him to double again the size of his farm, do another water pan, and expand the drip irrigation system. He also added a cabbage crop — 21,000 pieces! These efforts resulted in 300,000 KES ($2,907 USD) profit, for a three-year total of 500,000 KES ($4,850USD) in profit. Mr. Njuguna’s big plans and hard work were unleashed by the simple, yet transformative possibility of financial access.

Mr. Njuguna says this of his success: “Three things have made it possible for my success so far: first, I received good guidance from the Mwihoko community based organization and Anglican Church field officer about the best horticultural crops to grow that are likely to make a profit; second, I now have access to technical information needed to produce quality products. But perhaps the most important thing that has enabled my success is our Njagu community bank; they have trusted me with resources in the form of loans. I had tried commercial banks to support my vision but they thought I was too much of a risk. I have moved from a person who could not afford a decent meal for my family four years ago to a person employing other young people on my farm.”

Mr. Isaac is now “paying it forward,” helping other community members to establish water pans (hand-dug water catchment systems) and drip irrigation systems on their farms, so that they be as successful as he is. He also encourages and assists other people, especially youth, in joining Njagu community bank, so that they too can take advantage of the availability of funds and improve their lives, as he did his.

A community bank completed Mr. Njuguna’s plan for transforming his life. Now he is helping others transform theirs. And an entire community is seeing transformation together.

Blessings,

Jenninah Kabiswa

Country Consultant
World Renew Kenya

The above story was shared with me by Patrick Nderitu, of the Ng’enda Youth Farming Project implemented by Anglican Development Services.