|
Abstract:
|
CARE International launched a microfinance model program called Village Savings and Loan Association (VSLA) in Kenya. The goal was to help women participants to cope with numerous responsibilities that they face in a challenging socio-economic environment. The objectives of this study were; to examine the management structure of VSLA within VICOCAP in Kibera slum, to determine the challenges women under VICOCAP in Kibera slum faced while participating in VSLA, to analyse the benefits of VSLA on women’s livelihoods within VICOCAP in Kibera slum and to recommend the activities in which women could use the loans acquired in a productive way. The target population for this study was 173 respondents from Kibera slum with a sample size 87 respondents. Data was collected using the questionnaires, interview guides and focus group discussions. The study established that the VSLA made a considerable contribution in reducing poverty among the VSLA members. The findings of the study indicated that VSLA members had improved their livelihoods by 17 (45.8%) however 22 (54.2%) used their loans to pay bills such as educating their children, meeting daily living expenses and repayment of loans. The study further revealed that VSLA under VICOCAP operated with governing rules which required proper record keeping and meeting regulaerly by 15 (39%) and 14 (36.2%) respectively. However VSLA members faced challenges in repaying loans by 20 (51.3%), which the management of VSLA recommended to reduce the interest rate on the loans. The study recommends that VSLA members should be educated on how to choose, begin and sustain savings. The government and other stakeholders should support the VSLA financially to increase their capacity in giving out loans to members and recruit more members countrywide. |