Funded

Total loan: $4,500
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Kabati Fsa

Kenya
Kitui, Kenya / Renewable Energy Products

A loan of $4,500 helped to purchase cookstove products for sale to end users.


Kabati Fsa's story

Kabati FSA (Financial and Savings Association) is a village bank dedicated to improving the lives of its community members.

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!



Loan details

Loan length:

6 months
Disbursed date: May 15, 2013
Facilitated by Field Partner: Paradigm Project

Lenders and lending teams



Loan details

Loan length:

6 months
Disbursed date: May 15, 2013
Facilitated by Field Partner: Paradigm Project