Two major factors play into Kenya’s economic situation – wealth disparity and a lack of economic

growth. Currently, the richest 10 percent of the Kenyan population controls almost half of the nation’s

wealth while the poorest 10 percent hold less than 1 percent. The continuous extraction of resources from

the poor to the rich perpetuates many negative economic influences, including a lack of hope that hard

work will pay off – a belief that is vital to the economic growth and motivation of developed nations.

The second factor is that GDP growth has been low and is limited to only a few sectors – tourism,

manufacturing, horticulture, and services. The government’s failure to radically improve the nation’s

investment and savings habits drastically threatens growth, since substantial growth cannot occur without

sufficient capital. Encouraging the systemized implementation of savings and capital accumulation

strategies will allow Kenya to swiftly grow GDP at rates that far exceed the current pace. At the

grassroots level, microfinance and micro-enterprise growth play a critical role in bringing capital,

financial strategies, and economic opportunity to underserved communities throughout Kenya.

During the past 15 years microfinance has gained enough support from both the Government of Kenya

(GoK) and International Donors to be considered an industry in itself. An estimated USD 80 Million has

been received by the micro-finance industry in Kenya thus far. In the early 1990s, the GoK established a

Structural Adjustment Program that liberalized the economy and caused the GoK to support

micro-enterprises to counter possible negative effects of this liberalization. Kenya was interested in

supporting entrepreneurial development, hastening economic growth, and creating employment opportunities

that were all considered to be hindered by lack of credit, and limited access to financial services in

rural areas.

FSD partners with organizations that provide savings and loans programs, marketing and business

development assistance, and strategic advice to communities, groups, and individuals. These organizations

reach underserved populations that the government and large banks have forgotten. Interns and volunteers

conduct research and/or implement project work that directly addresses income generation and savings for

a wide variety of populations. By working with FSD, you will gain hands-on experience with small business

development at the grassroots level, empowering community members with the tools and resources needed to

reduce poverty.

Read more about Microfinance programs and opportunities initiated by our Community Partners in Kenya.

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