Nguvu Self-help Group

Thank you for your loan. It has been disbursed to the Nguvu Self-Help Group group, consisting of Gilbert Magati, Samuel Karuma, Zakao Nyanchoka, David Mosobeti, Alfred Ombati, Josephine Kereu, Joseph Obare by Opportunity International- Wedco Ltd. in Kenya. We are excited to watch this business grow. Over the next 10 months, Opportunity International- Wedco Ltd. will be collecting repayments from this entrepreneur and posting progress updates on the Kiva website.

Overall, the members of the Nguvu Group are doing quite well with the loans. All members reported an improvement in their businesses as well as in the quality of their lives. The loans have truly acted as a springboard for all of them to provide for their families, send their children to school and make lasting and sustainable changes in their businesses.

I spoke with the members of the group in an adult education center in their village of Suneka, near Kisii. Some of the group members learned their trades in this center; they told me that they attended classes here because it was cheaper and closer than secondary school. The center teaches classes in sewing, carpentry, tailoring, dress making, mechanics, building construction, welding and metal work.

I spoke with each group member individually. Here are their stories:

Ben Makore: Ben sells 2nd hand clothing for men and women in Suneka. With part of his loan, he bought a young dairy cow. Although the cow will not produce milk for another 4 years, Ben saw this as a long-term investment, because the cow will produce milk for many years after that, and the cow can graze around the village, cutting down on the cost for feed. With the rest of the money, Ben was able to buy clothing in greater bulk and thus cut his per unit costs. This has allowed for a higher profit margin.

Ben can now afford some furniture for his house: he lives with his mother, as he is still only 17 years old. He supports her with his business, as she sells potatoes.

Even though he is only 17, Ben has big ideas. He wants another loan for another cow, a welding machine, to open a hair salon and a battery charging machine, in order to charge and recharge batteries for village residents.

Samel Karume:

Samel runs a metal welding shop. He used his loan to buy materials to construct doors and windows. He sells these to construction companies which then use them in building construction. Samel also bought spare parts for his machines and tools, so as to prevent waiting for spare parts to come in from Kisii, which slows his business.

In the future, with another loan, Samel would like to expand his business to include auto repair, for which he would have to hire several employees, providing much needed employment in the village. He would also train these employees, giving more members of the village specialized skills.

Josefine Kereu:

Josefine sells potatoes in the village. She used her loan to buy more potatoes, but also a cow and some hens. Now, she has expanded her business and sells milk and eggs to local stores. In the future, Josefine would like to buy another cow, as there is a need for more milk in the village. She would also like to construct a hen house and buy more hens.

Josefine has 3 children and with the profits from her new milk and egg business, she can pay school fees to send her children to a private, and thus much better, school. She is quite proud of this fact.

Joseph Momanyi Obare:

Fro Joseph, the loan enabled him to buy his goods in bulk, increasing his profit margins greatly. He sells various goods in Kisii, at the bus station. He has also bought a cow with his loan, and sells the milk. He is married with 5 children and with this increased profit he is able to pay private school fees for his children. Also, Joseph explained to me:

“My children now have milk, sugar, clothes and are healthy”

Jared Atimo:

Jared sells 2nd hand clothing. With his loan, he bought a small calf, which will provide him with milk in a few years. He already owns a cow and sells 10 liters of milk a day. With the rest of his loan he bought more clothing in bulk and sells them for a greater profit. He also hopes to open a business for his wife, who would sell new clothing, which is more upmarket than his business and yield higher profit.

Jared, who is married with 2 children, told me: “5 years ago, I had nothing, now I can send my children to school and bring them to a doctor when they are sick”

Margaret Kerubo Momanji:

Margaret has been selling Irish potatoes for the past 3 years. With her loan, she bought potatoes in bulk, driving down her costs. She would like to concentrate in this sector and sell more potatoes. In the future, Margaret would like to get another loan in order to buy more potatoes as well as other vegetables.

Gilbert Magat:

Gilbert owns a shop in Suneka, selling sugar, cooking oil, salt, flour, soda and also milk from a cow that he bought with his loan. Before opening his shop, Gilbert cut and sold sugar cane, bananas and cabbage on the side of the road, but says that business is better with an established shop.

Gilbert is currently using most of his profits to send his 3 children to private school, but it is expensive and would like another loan to buy a bigger shop and sell more items. With another loan, Gilbert thinks that his business will provide enough profits to send his children to school and allow for reinvestment in the shop.

Julius Nyachwaya:

Julius is a farmer and the owner of 2 cows, one of which he bought with his most recent loan. He raises corn, beans, bananas, cassava, pumpkins and various local greens (sort of like kale).

This most recent loan helped him expand his farming operation, allowinghim to buy new tools and more fertilizers, as well as the extra cow. He is married (his wife does not work) and has 3 children. They are too young for school, so he is able to make his loan payments very easily and reinvest in his businesses. In the future he would like to be able to pay for private school for his children as well as any medical bills that may come up.