Most of the FSA’s members live on less than $1 a day, have little collateral, and are therefore unable to access loans through traditional banking services. Its members are mainly farmers and those working in the informal sector, such as shopkeepers, market vendors, and tailors. Most of the FSA members live in a rural setting and cook using open fires and inefficient mud stoves. These produce health-damaging smoke and contribute to the deforestation that is destroying Kenya’s environment. Paradigm’s cookstoves will reduce the toxic smoke by 70% and will reduce the fuel needed to cook by up to 50%.
Kabati FSA was started in 2004 and has around 4,000 members, 70% of whom are women. The FSA mainly disburses business loans at a very low interest rate. It has a repayment rate of close to 100%. The FSA is fully owned and governed by its members, all of whom have shares in the bank.
Kabati FSA introduced Paradigm’s improved cookstoves to its members in August 2012. The stoves were received extremely well by its members. Most are extremely eager to purchase a cookstove. However, paying for the product upfront presents a challenge. It is difficult for the FSA to raise enough low-interest capital to finance the cookstoves for its members, as business loans make up the majority of the FSA’s loan portfolio. With a loan from Kiva, Kabati FSA will be able to offer cookstoves to its members in four monthly installments.
With a Kiva loan, Kabati FSA will receive 290 fuel-efficient cookstoves from Paradigm and will offer its members manageable financing terms to purchase a stove. This will make the cookstoves accessible to even the lowest income members of the FSA.
Help improve the health and financial stability of a rural family in Kenya today!
More information about this loan
This loan is part of a program to fund institutions, including cooperatives and community-based organizations, that offer low-cost financing to general consumers who want to purchase EzyLife clean cookstoves. These institutions have successfully built trust with large networks of women living in low-income areas throughout Kenya. Their reach and influence provides an excellent pathway for expanding access to clean cookstoves.
This Kiva loan will be used to provide borrowers with needed goods or services, as opposed to cash or financial credit
About The Paradigm ProjectThe Paradigm Project (TPP)is a for-profit company that builds supply chains to deliver energy-efficient products to low-income families in developing countries like Kenya. Based in the U.S., the organization works with poor entrepreneurs to supply high-quality, clean-burning cookstoves manufactured by innovative brands like Envirofit, Burn Design Lab and EzyStove.
Kiva lenders’ funds are used by TPP to offer low-interest loans to retailers and consumers interested in purchasing high-quality, high-efficiency cookstoves that significantly reduce exposure to life-threatening indoor air pollution and deforestation. One stove can save a family over $280 in income, reduce exposure to toxic emissions by 70% and prevent the destruction of 33 trees.
The Paradigm Project joined Kiva through our Experimental Partnership Program, and has therefore received a lighter level of due diligence. Accordingly, loans associated with this partner carry a higher level of risk than typical Kiva loans.
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Success!! The loan was 100% repaid