COMMUNITY SAVINGS & CREDIT SCHEME
What is it about?
The Community Savings & Credit Scheme (CSCS) is mandated with empowering the economically active poor members of the community through sustainable savings and loaning services and enterprise development initiatives in their respective rural areas, currently it is being specifically implemented as an activity under the Community Based Health Financing (CBHF) project.
Community Savings & Credit Scheme (CSCS) system is pro-poor driven while it is delivered through some of the best micro-finance market practices where communities are encouraged to save regularly for them to access savings and credit services from time to time. Besides the savings acting as guarantee fund against loans disbursed, it is also utilized as a tool for re-enrolment in CBHF schemes in the subsequent years.
This initiative is delivered through the Village Savings and Loaning model and facilitated by structured trainings and follow-ups that ensure that communities own and manage the initiatives effectively and efficiently with limited/minimal supervision from STIPA.
Why is it relevant?
Community Savings & Credit Scheme (CSCS) system addresses the issues of financial inclusion of the communities that are currently engaged in the Community Based Health Financing Project by addressing issues of local resources mobilization of savings mobilization, access to affordable credit services and micro-insurance services that are tailored for the community’s need.
Most of the products developed, aimed at financial inclusion, targets the local communities and priced to enhance affordability and accessibility.
What does it change?
Community Savings & Credit Scheme (CSCS) system aims at changing the living standards of the communities engaged in the Community Based Financing Project (CBHF) by enhancing their capacity to mobilize adequate savings, create affordable credit that empowers their community enterprises and as well afford micro-insurance product(s) that ensure that their health is secured.
In the long-run, a holistic transformation is expected to be achieved hence the communities as well own up some of this initiatives and this becomes a strategic sustainability approach.
How does it work?
Community Savings & Credit Scheme (CSCS) empowers communities to take charge of their lives by creating an environment of self-management aimed at financial inclusion structured through the regular group meetings, a robust self-management by the community and creation of affordable savings, credit and micro-insurance products through the savings mobilized.
It does work around the Village Savings and Credit model where all returns from the financial engagement are shared by the community as whole hence ownership is derived hence it is a sustainability approach.
Who are the beneficiaries?
The current beneficiaries of Community Savings & Credit Scheme (CSCS) are members enrolled in Community Based Health Schemes Siaya, Kisumu, Kisii and Homa Bay counties of Nyanza Province.
In Siaya County, there is KASTEP and POWO Schemes.
In Kisumu County, there is KADAWA, KAMRONGO, MIRANGA and GAWU SCHEMES.
In Homa-Bay County, there are OGERA scheme.
In Kisii County, there is TAI scheme.
Who could use that approach?
Community Savings & Credit Scheme (CSCS) is an approach that can be used by any Self Help Group (SHG), Community Based Organization (CBO) and Co-operatives Societies (Co-op).
Who is using it already?
Community Based Health Financing Project at Support for Tropical Initiatives in Poverty Alleviation (STIPA).
Agricultural Demonstration site