Women Building Resilience and a Future Through Savings and Loaning in Kisumu

By Starty Odingo

Muungano Wa Wanavijiji Federation-Kisumu is a social movement of people residing in slums within Kisumu. Since its formation, the federation has responded to various rising threats of eviction (e.g., in the Nyalenda settlement) and the lack of basic needs, such as access to water at the household level through the DMM, as well as inadequate housing in informal settlements across Kisumu and Kenya.

Through collective efforts by its members, community leaders, and civil society organizations, the federation has showcased the importance of numbers for a unified voice to advocate for the rights of the urban poor. Over time, the federation in Kisumu has grown into a powerful network of communities dedicated to upgrading their lives and environment. This network improves general living conditions through partnerships and self-organization rooted in community-led development, participatory planning, collective action, and the empowerment of vulnerable groups such as women, children, people with disabilities (PWD), and the elderly.

Savings and Loaning: Building Resilience and Empowering Women

Savings and loaning groups often emerge, develop, and mature organically within communities, particularly in informal settlements where access to formal financial institutions is limited or nonexistent. These groups frequently arise out of necessity and the desire to establish financial independence among women.

Women in informal settlements often face exclusion from traditional and modern banking services due to a lack of documentation, financial security, or proximity to bank branches. This exclusion mutes entrepreneurial dreams before they can flourish, limiting the positive impact on their communities. However, women’s groups such as Good News Calabash and the Mother-to-Mother Support Group in Kisumu are shining examples of overcoming these barriers.

Under SDI-Kenya/Muungano Wa Wanavijiji and the Cities Alliance, these groups have received training in business start-up models, planning, record-keeping, and marketing to strengthen their entrepreneurial skills. Additionally, by incorporating women’s ideas into community dialogues about movement building and agenda setting, solid networks like the Mother-to-Mother Support Group have been consolidated.

Through the Voices for Just Climate Action (VCA) program, which places grassroots groups at the center of climate action, the Good News Calabash Women Group has also benefited from the Next Level Grant Facility (NLGF). This funding helped establish a poultry structure that serves as their main income-generating activity while addressing food security challenges in informal settlements.

Good News Calabash Women Group

Comprising only women, the Good News Calabash Women Group is based in the heart of the Nyalenda settlement. Here, economic adversity is a daily reality. Despite these challenges, the women demonstrate resilience and innovation, bouncing back from the impacts of climate change and striving to establish climate-resilient housing through their savings.

Their transformative activities revolve around group savings and loaning, which are built on trust, empowerment, and hope. According to their chairlady, Mrs. Millicent, “Sisi kama wa mama pia tuko na jukumu kubwa kwa kuzingatia hali ya familia zetu. Katika hii kikundi, tuko na wajane na wamama ambao ni single mothers. Hatuna chakula ya kutosha, na tuko na watoto. At least hii activity inatusaidia kupata pesa tunazoweza kujilisha na kupeleka watoto shule.”

The group operates on a rotating savings and loaning model, where members contribute a fixed amount monthly. These pooled funds are loaned to members to support small businesses, pay for children’s education, and meet other needs. “Kila mwezi tunafanya mchango ya shilingi mia mbili kwa kila member. Mwenye hajaweza kuchanga kwa mwezi moja, anachanga double the next month. Hizo pesa tunaloan watu alafu wanarudisha na interest,” said Millicent.

Good News Calabash Women Group meets weekly to collect savings and maintain records of contributions.

Photo caption : David Oduor, kyctv

Mother-to-Mother Support Group

Located in the Bandani settlement in Kisumu, the Mother-to-Mother Support Group consists of young mothers engaged in WASH practices, goat keeping, and poultry rearing as part of their income-generating activities. These women leverage their collective efforts to combat food and nutritional insecurity while advocating for clean water and proper sanitation.

Their chairlady, Millycent Randiki, highlighted their challenges: “Huku Bandani kuna shida ya sanitation, shida ya maji. Vyoo zetu ziko katika hali mbaya na wakati wa mvua zinaenda na floods. Zinatuweka at risk za kupata magonjwa. Kwa sasa tunafunza wamama kuzingatia usafi wa maji na tunauza mayai ya kuku ili kupata pesa kama kikundi.”

Mothers-to-Mother Support Group, a network of female CHPs and young mothers in Bandani settlement, meets to discuss Water, Sanitation, and Hygiene (WASH) challenges in Kisumu.

Photo by David Oduor-Kyctv, Kisumu

Group Savings and Loaning: A Pathway to Sustainability

Group savings and loaning are built on the simple yet powerful idea of collective effort. Members contribute agreed-upon amounts to a communal fund, which is then loaned out to start or grow businesses, covering educational or medical expenses. The repayment, with interest, sustains the group fund, enabling it to grow and support larger projects over time.

Challenges and Opportunities

Despite their success, women’s savings and loan groups face challenges, including legal recognition and structural organization, which leaves them vulnerable to risks such as theft and fraud. Economic instability in informal settlements also affects members’ ability to contribute consistently.

However, partnerships with civil society organizations (CSOs), government affirmative funds, and other development groups provide these women with training, resources, and capacity-building opportunities. As one member said, “Muungano Wa Wanavijiji imetufunza kukeep records, ku-advocate and lobby for resources, na kutulink na watu wengi.”

Conclusion

Savings and loaning groups are more than financial tools—they are pathways to sustainable development. Women in Kisumu’s informal settlements are leveraging these initiatives to improve their livelihoods, build resilience, and foster community development, proving that even in adversity, unity and determination lead to transformative change.