VSLAS (Village Saving & Loan Associations) - Kenya
According to CARE International Report 2017, 94% of Kenyan VSLAs members are women
Importance of VSLAs
- Financing for Micro, Small and Medium Enterprises (MSMEs) owned by Kenyan women.
- Give opportunities to women who have no access to conventional banking services that require collateral for credit accessibility
- in addition to providing financial services to women for different needs, they provide loans that are invested in various income generating projects
The purpose of a VSLA is to provide simple savings and loan facilities in a community that does not have easy access to formal financial services.
In Kenya, Village Savings and Lending Associations (VSLAs) started as saving groups popularly known as Chamas.
After a certain period the accumulated savings and the loan profits are distributed back to members.
Different development stakeholders have realized that VSLAs are one of the best ways poor households can be provided with a secure place to save, the opportunity to borrow on flexible terms, and affordable basic insurance.
They are now supporting VSLAs by equipping members with much needed skills to help them run efficiently their groups.