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Category: Kenya

Visa and Hand in Hand project helps women scale up their businesses in Nairobi’s most deprived communities

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Participants saw an average income uplift of USD $156 per month, despite the Covid-19 crisis, with more than 80% reporting improved financial management skills.

Hand in Hand’s Kenya Micro-Enterprise Success Programme (KMES) project, funded by Visa Inc., has delivered unprecedented results, with entrepreneurs typically increasing their incomes by USD $156 per month, despite the Covid-19 pandemic.

The project is the first of its kind to target existing small business owners as well as first-time entrepreneurs. Delivered in Nairobi’s informal settlements, which the UN describes as “some of the most dense, unsanitary and insecure slums in the world,” the project aimed to boost local economies, create jobs, and lift families out of poverty.

The three-year programme provided 8,200 first-time entrepreneurs (6,560 of them women) living below the poverty line with the core business training they needed to start their own micro enterprises. It also provided ‘advanced’ training to 1,600 people (1,280 of them women) who wanted to scale up their  businesses, as part of its ‘acceleration’ cohort.

But, just months after the project began, Kenya was hit by its first wave of coronavirus cases, and the country locked down. For Kenyans, the pandemic wasn’t just a health crisis, it was an economic crisis as well – devastating livelihoods and pushing millions of families below the poverty line.

Despite this – the programme achieved remarkable success. Across the project, more than 80% of participants reported improved financial management skills. And, both first-time entrepreneurs and existing small businesses said they were now more financially resilient. This resilience played a crucial role in helping participants to weather the economic effects of Covid-19 pandemic — which, at the height of the crisis, saw 20% of Kenyans selling assets, 24% relying on loans to get by and over 40% skipping meals (World Bank.) However, thanks to the training, 90% of participants on the KMES programme reported that they would be able to withstand a financial shock without having to sell an asset or get into debt.

Overall, over the course of the project, first-time entrepreneurs increased their profitability by an average of 15%, earning an additional USD $150 a month. When the existing small businesses owners joined the programme they were typically making a small loss on each product sold. After taking part in the programme, they boosted their businesses’ profits by an average of 95%, earning an additional USD $192 a month.

All programme members received business and financial training, with existing small business owners being given additional mentoring and support to help them scale up their businesses. This included training in social media and digital marketing, and support to help them link up with larger markets and to access credit.

As a result of the business and financial efficiency training they’d received from Hand in Hand, programme members were able to act quickly to cut their costs, with participants in the ‘acceleration’ cohort seeing an average cost reduction of 43%. It was these cost savings that enabled entrepreneurs’ small businesses to remain operational throughout the pandemic, despite lockdowns which wiped out a third of the country’s micro and small businesses (Central Bank of Kenya.)

Being able to rapidly move their businesses online also played a key part in the entrepreneurs’ success. Many began to market their products on social and digital platforms during the pandemic, and the number of businesses taking mobile payments rose from 38% to a staggering 81%.

As the entrepreneurs’ businesses grew, so too did their ability to create jobs within their communities. Existing small businesses owners in the ‘acceleration’ cohort of the programme created 0.66 jobs per business, with first-time entrepreneurs creating jobs at a rate of 0.45 per business.

The programme also increased women’s decision making power, with 60% more first-time entrepreneurs reporting that they were now able to take part in decisions that affect their lives, such as household purchases, family visits and healthcare.

Eva Ngigi-Sarwari, Country Manager, Visa Kenya, said: “We are thrilled with the impact delivered by our partnership with Hand in Hand as not only did we surpass the number of targeted beneficiaries, but we have seen the immediate impact on their businesses.

“We will continue to seek out partnerships and opportunities that reach those traditionally underserved, providing them with access to resources that can help improve their economic livelihoods, businesses and communities.”

Hand in Hand Eastern Africa CEO, Albert Wambugu said, “At a time when businesses across the country were closing in record numbers these our members from Nairobi’s informal settlements were able to reduce their costs, expand into new markets and take their businesses online.

“Additionally, this project gave our members a path to digital financial inclusion, with a majority of entrepreneurs being able to access useful and affordable financial products and services that meet their needs, thus reducing poverty, unleashing their potential and boosting prosperity. Truly, we are grateful to Visa for their support.”

Hand in Hand International CEO, Dorothea Arndt, said: “This project equipped women with skills not only to get through the Covid-19 crisis but to create thriving enterprises. Women entrepreneurs in these extremely poor informal settlements have the odds stacked against them. Not only are they more likely to be digitally excluded, it’s often much harder for them to access credit.

“Thanks to this project with Visa Inc. these women have been able to confound expectations and succeed as entrepreneurs, even in the midst of a global pandemic. As a result of the training – which included social media marketing skills and support to access credit, they’ve been able to expand their businesses and lift their families out of poverty for good. What’s more, many of them are now employers, creating much-needed jobs in their communities.”

Hand in Hand and The Coca Cola Foundation partner for cleaner Nairobi streets

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The project will help create 525 micro recycling businesses over two years

Hand in Hand International is excited to announce The Coca-Cola Foundation has committed US $150,000 toward ‘Women in Waste’ a two-year project to help solve the plastic waste crisis and economically empower women in Nairobi, Kenya. The initiative will help create 525 micro-recycling businesses that will clear and recycle tonnes of plastic rubbish left on the streets of Nairobi’s informal settlements.

Hand in Hand will give 750 people (who, on average live on US $2 per day) the business and technical training they need to create or, in some cases, enhance their recycling businesses. With Hand in Hand’s help these waste entrepreneurs will have access to the credit they need to begin collecting, sorting as well as compressing and baling plastic waste to sell on to private and government waste contractors.

Importantly, 80 percent of those 750 people will be women. But, it’s not just about economic equality. We know that when women earn – and decide how they spend it – it reduces poverty for everyone. More children in school, and more families with access to healthcare.

Dorothea Arndt, Hand in Hand International CEO, said, “Programs that improve the world we live in and empower wonderful and inspiring women are the lifeblood of what we do. Like The Coca-Cola Foundation, we hold empowering women at our core.”

The Coca-Cola Foundation’s partnership with Hand in Hand is just one of the ways the Foundation is working to empower women across the globe. By the time the project completes in September 2024, the 525 waste enterprises will support hundreds of jobs which, based on similar programs operated by Hand in Hand in Nairobi, could increase daily incomes by 30 percent.

Saadia Madsbjerg, President of The Coca-Cola Foundation, said, “We are proud to use our resources to fund these types of programs. Since 1984, The Coca-Cola Foundation has committed itself to supporting sustainable community programs. With this particular program, 80% of the beneficiaries of this grant will be women, who will have a better chance at improving their livelihoods. As such, we will not only have a cleaner Nairobi, but we will also have a more economically empowered one, with more women actively making a positive difference in their settlements and communities.”

Nairobi’s informal settlements are home to some 2.5 million people (60% of the city’s population). Because these are informal settlements there is no infrastructure and rubbish from all over the city is dumped on their streets.
Nicole, Hand in Hand graduate and plastic recycling entrepreneur, Nairobi, said: “We realized there was no garbage holding site…and the garbage collectors were not doing their work. We decided to do something (about the garbage) that will also benefit the community.”

Hand in Hand Afghanistan appoints new Executive Director

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After 10 years as Executive Director of Hand in Hand Afghanistan, Abdul Rahim Nasry will be stepping down from the role, with Dr. Kamran Hekmati being appointed as his successor.

Dr Kamran Hekmati has served as Programme Manager, Program Director and, since January, as Deputy Executive Director of Hand in Hand Afghanistan. Abdul Rahim Nasry will continue to work closely with Hand in Hand Afghanistan in an advisory role.

Abdul Rahim Nasry said: “It’s been an enormous privilege to serve as Executive Director at Hand in Hand Afghanistan and play my part in supporting so many people to lift themselves and their families above the poverty line through entrepreneurship and hard work.

“I’d like to thank my colleagues at Hand in Hand and our generous donors and funders – together we have transformed thousands of lives for the better. I am delighted that our own Dr Kamran Hekmati has been appointed to lead Hand in Hand Afghanistan as Executive Director and am confident that under his leadership the organisation will continue to go from strength-to-strength.”

Dr Kamran Hekmati said: “Since its inception Hand in Hand Afghanistan has supported over 50,000 people to set up sustainable, profitable microenterprises – changing 390,000 lives in the process. I’m excited to lead Hand in Hand Afghanistan in this next stage of its journey, and, working with our donors and stakeholders, look forward to reaching more communities, creating more jobs and helping to build better futures for even more families.”

Dorothea Arndt, Hand in Hand International CEO, said: “Hand in Hand Afghanistan’s success is testament to Nasry’s skillful leadership and his commitment to helping people beat the odds and find their own route out of poverty. We wish him all the best for the future. I’d also like to congratulate Dr Kamran Hekmati on his new role – to which he will bring many years of expertise.”

95% of Hand in Hand members report improved quality of life

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From designing new projects to evaluating old ones, Hand in Hand puts our members at the centre of everything we do. So last year, we asked 60 Decibels – experts in measuring impact through a “customer feedback lens” – to find out what our members in Kenya are saying about our work.

For two weeks in November, the team at 60 Decibels interviewed more than 170 members who’d completed our training, all within the last two years.

Here’s what they had to say:

  • Hand in Hand’s training is useful. 95 percent of respondents were still using it in their business.
  • Hand in Hand’s training improves people’s lives. 95 percent saw improvements in their quality of life after completing our training. Bigger incomes were the main reason why.
  • Hand in Hand goes where other NGOs don’t. 92 percent of respondents said there was no alternative to Hand in Hand where they lived.
  • Given a choice, they prefer Hand in Hand. Among respondents who had an alternative, 85 percent said Hand in Hand was better.
  • They could use more credit. Asked for suggested improvement, 34 percent of respondents suggested increased financing, the most common of any response.

Conducted before the threat of coronavirus was known, the survey will nevertheless help us tailor our post-Covid-19 response, providing insight into what’s working for our members and where we can be of more help. More on that in weeks in and months to come.

Why women and girls are vulnerable to coronavirus

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Although the risk of serious illness and death from Covid-19 is greater among men and the elderly, women in the developing world face unique challenges that shouldn’t be ignored. In this article, Hand in Hand Programme Development Manager Isabel Creixell explains how women are being affected – and what Hand in Hand is doing to help them.

 

 

Livelihoods

Women are traditional caregivers: when a family member gets sick, it’s their job to step in. First and foremost, this puts them at greater risk of infection. But even in cases when they don’t fall ill, the burden of household work can increase exponentially, particularly at a time when children are home from school. Parents all over the world have been struggling with a version of this, and in many cases feeling completely overwhelmed. Now imagine if you also had to walk miles every day to fetch water, plus do the chores and shopping yourself, all while tending to the smallholding that’s keeping your family from starving and, in many cases, trying to run a small business on the side. Something’s got to give, and when a family member or members fall ill that thing is almost always the business – and in many cases the farm.

 

 

Hunger

Women working as unpaid nurses don’t have time to be unpaid farmers. In households where men don’t share the burden (most of them, in rural settings) and virtually 100 percent of female-headed households, health crises can turn to hunger crises, quick.

Across our operating countries – right now – there are women who don’t have the time to grow food because of coronavirus and don’t have the savings to buy it. Those who do have savings will be running out soon. At the same time, women are more likely than men to work in the informal economy, meaning they lack social protections like insurance or sick paid leave. Their capacity to absorb shocks, in other words, can be effectively non-existent.

Finally, and maybe most starkly, when economic pressures and food shortages visit rural households, tradition often dictates that women and girls eat least and last.

 

 

Gender-based violence

Increases in gender-based violence during lockdown have rightly caught our attention here in the developed world. The developing world, where rates of violence against women are significantly higher, deserves our attention too.

Let’s not forget that things could get worse, not better, as the lockdown lifts and the true extent of our economic crisis begins to dawn. If isolation is one cause of gender-based violence, stress and financial difficulties are two more. At a time when every spare penny will have gone to buying food, escaping violent relationships will be more difficult than ever.

Health

Health services can be universally lacking in the countries where we work. But even when they’re available women face unique challenges in accessing them. In some communities, restrictive norms keep women from travelling alone. In others’, doctors won’t see them unless their husband – who could well be ill with Covid-19 – is present at the appointment.

How Hand in Hand is helping

Long-term plans to help women weather the coming economic storm are being developed by our programmes teams now.

In the more immediate term, we’ve already taken measures to protect our women members. These include:

  • Reaching women that official health guidance hasn’t, typically via their Self-Help Group leaders, to spread information about social distancing, handwashing and other virus prevention measures.
  • Providing opportunities to talk about domestic abuse. Although they’re stuck in their homes, some women find that simply having a space to talk about their situation can benefit their mental health. When the lockdown is over, we can more actively direct them to support services.
  • Providing information about keeping their businesses running, from how to produce items such as soap and masks to boosting food security by pointing rural members to alternative sources of seedlings and crops.
  • Working with men, who make up roughly 20 percent of our members, to share information about the benefits of sharing household tasks.
  • Reaching men with targeted messages about coping mechanisms, and providing someone to talk to, in order to reduce the incidence of domestic abuse.

Visa and Hand in Hand’s entrepreneur training communities boosts incomes in Nairobi’s most deprived communitie

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Visa and Hand in Hand’s entrepreneur training communities boosts incomes in Nairobi’s most deprived communities: Kenya Micro-Enterprise Success Programme, Endline report by 60DB
Members saw an average income uplift of USD $156 per month
Hand in Hand’s Kenya Micro-Enterprise Success Programme (KMES) project, funded by Visa Inc., has resulted in entrepreneurs typically increasing their incomes by USD $156 per month, according to a report by 60DB.
The project is the first of its kind to target existing small business owners as well as first-time entrepreneurs. Delivered in Nairobi’s informal settlements, which the UN describes as “some of the most dense, unsanitary and insecure slums in the world,” the project aimed to boost local economies, create jobs, and lift families out of poverty.
The three-year programme provided 8,200 start-up entrepreneurs (6,560 of them women) living below the poverty line with the core business training they needed to start their own micro enterprises. It also provided advanced training to 1,600 people (1,280 of them women) who already owned and operated small businesses in the area, as part of its ‘accelerator’ cohort.
The report found:
– Members are now more resilient, and report improved ability to meet financial needs, with 91% and 94% of start-up and accelerator members respectively able to come up with the funds to cover an emergency.
– Start-up members increased their profitability by an average of 15%, earning an additional USD $150 a month. Accelerator members boosted their businesses’ profits by an average of 95%, earning an additional USD $192 a month.

– Women in both cohorts are now more involved in joint decision-making with their spouses. 54% of women in the start-up cohort and 56% of women in the accelerator cohort make joint decisions with their spouse when it comes to matters regarding health, visiting friends and family and large purchases.
– Members continue to see changes in their quality of life a year after the Hand in Hand training. 97% of start-up members and 95% of accelerator members say their quality of life has improved because of the Hand in Hand training still a year later.

Hand in Hand named ACT Charity of the Year 2018

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Hand in Hand International is proud to announce our selection as the Association of Corporate Treasurers (ACT) Charity of the Year for 2018/19.

The award, which culminates at the ACT Annual Dinner in November, follows a competitive bidding process to the ACT charity committee. Proceeds will fund an entire Kenyan village’s journey from subsistence to success, creating an estimated 275 new microbusinesses and 350 new jobs.

“From financial literacy training to the creation of sustainable microenterprises, so much of Hand in Hand’s work centres on sound financial management,” said Hand in Hand International CEO Dorothea Arndt. “That’s why it’s with particular pleasure that we accept this honour from Britain’s professional body specialising in corporate treasury.”

Although the designation lasts all year, fundraising peaks on 14 November with a charity auction at the ACT Annual Dinner at the Grosvenor House Hotel in London, hosted by Sandi Toksvig of Great British Bake Off and featuring John Kay, one of Britain’s leading economists, speaking on behalf of Hand in Hand.

We are looking for volunteers to help in those efforts, attending the dinner to speak with interested ACT members about our work. For more information about how you can help, please email Hand in Hand Head of Media Ann Dickinson.

To read the ACT’s Charity of the Year announcement, click here.

Hand in Hand speaks at World Bank

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Washington, DC – The world’s poorest residents are doomed to stay that way until governments do more to nurture them as entrepreneurs. That was the message delivered by Hand in Hand Eastern Africa CEO Pauline Ngari to hundreds of MPs from dozens of countries at the World Bank last week.

Speaking to the Global Parliamentary Network, a group of policymakers who meet each year as part of the World Bank-IMF Spring Meetings, Pauline urged parliamentarians to:

  • adopt accelerator programmes to help grow SMEs;
  • put entrepreneurship studies front and centre in national curricula;
  • foster relationships between microfinance institutions and training organisations.

Her session, ‘Fighting Inequality Through Job Creation & Growth’, also featured speakers from the World Bank, IMF and Peace Child International. It preceded a roundtable discussion featuring Christine Lagarde, Managing Director of the International Monetary Fund, and Jim Yong Kim, President of the World Bank.

“Delivering programmes is what we do – and advocacy helps us do it,” said Hand in Hand International Co-CEO Dorothea Arndt. “The World Bank is the perfect venue to share our message, establishing jobs and entrepreneurship as key planks in the development agenda. Thanks, Pauline, for sharing it so ably.”

Youth Job Creation

The conference also hosted the launch of the ‘Youth Job Creation Policy Primer – 4th Edition’, a document outlining the problem of youth unemployment and proposing solutions for policymakers. Hand in Hand figured centrally, not least for our Entrepreneurship Clubs and four-step ‘systems approach’ to job creation. Several case studies featuring our members were also featured.

Click here to visit the policy primer website.