A Word from the Chairman

In fighting poverty, it is now upon the society to embrace micro – financing as a means of facilitating the change from below to above the poverty line. Majority of Kenyans living in the rural areas live below the poverty line. This group of people find themselves in a quagmire of having potential at their feet but lacking that little push to utilize that potential. Just a small amount of cash for investment can make a huge difference in their lives. This cash is there, it can be provided, and we have the means to take it to the poor people.  

Banking on low income entrepreneurs is not only the right thing to do, it is the smart thing to do – as an effective means to alleviate poverty, encourage entrepreneurship and reach an emerging growth market.  Provision of business development services although essential for business should be treated differently from the financial service transactions with different funding and cost arrangements.  Often the business development services should be provided by the same Institution that avails the loans.  This is because it is only the Institution that has developed connectedness with the clients that understands best approaches in provision of non-financial services to the same target group.

Most poor people in Kenya are women.  Almost all low-income women are economically active.  Absence of formal employment make them non `bankable'. This forces them to borrow from local moneylenders at exorbitant interest rates. Most are micro-entrepreneurs and self employed in the informal sector, with major economic roles in farming, commerce, transport and small industry.  These roles – and the women in these roles – are often undervalued.

From these experiences and conclusions, Rural Assets Credit Ltd has decided to bank on the poor in the transformation of the way the world works because the Institution's belief is very specific in this respect. We have identified a starting point in RAC, we are willing and able to go to greater heights in micro financing. Join us as we walk though this very important journey of poverty eradication.