On March 3, 2023, the Sabiny Transformation Initiative (STI) conducted a training session for women’s groups in Chepayakaniet, focused on entrepreneurship and business skills using the Village Savings and Loan Association (VSLA) model.
What is a VSLA?
A VSLA is a self-managed, community-based savings and loan group that allows members—especially those without access to formal banking services—to save money, access small loans, and support one another in times of need. Members meet weekly to contribute savings, take out loans, and build financial resilience.
Training Highlights:
- Participants learned how to form and manage VSLAs, set share prices, issue and repay loans, and maintain basic financial records.
- The importance of group independence, transparency, and regular audits was emphasized.
- The concept of a social fund—a small pool for emergencies—was introduced.
- A Q&A session addressed common concerns, such as joint membership for spouses, reluctant community members, and safe money collection practices.
Challenges Noted:
- Late arrivals reduced available training time.
- Some women held negative perceptions of savings groups due to past experiences.
Lessons & Observations:
- Many women had previously joined informal savings groups but were misled or defrauded.
- Despite this, participants were highly enthusiastic and eager to start their own VSLAs.
