Background
The group was started in 2020 as a merry go round group where members were weekly contributing Ksh 200 and was given to one member. The group was later paralyzed by Covid-19. In January 2021, the group was rebranded as “Table banking group” and members elected group leaders such as: Chairperson, Assistant chairperson, Secretary, Assistant secretary, Treasurer and a patron to help run the group. The name of the group was then changed to SHALOM FAMILY GROUP and has made very significant impact on the lives of its members since then.
Since its inception as a table banking group, it has enrolled or registered 20 members, 19 of whom are women.
What is Table Banking?
Table banking is a group-based funding strategy that aims at improving the economic life for the marginalized, especially underprivileged women in rural areas. Each time members meet, they save money from which they can take short term loans. Table banking is not a complex financial concept but it is making a difference in the lives of many women and their families in many ways. It is a simple idea whereby members gather after every two weeks and literally put their money on the table, and a clear record is taken, which then becomes immediately available to members for loans. This practice eliminates bank fees, waiting periods for loan approval and many other obstacles faced by women in rural areas who need loans but lack collateral. The loans given are purposely used to start income generating activities or small businesses.
Financial Literacy training for group members
This is the ability to understand and effectively use various financial skills, including personal financial management, budgeting, and investing. Before meeting with Claudia Bruschke in September 2023, the group had not undergone any training to help members have a better understanding of financial management. Three group members had an opportunity to attend the workshop organized by Claudia on 23rd September 2023 when she visited Rusinga Island.
The three members later shared what was learnt in the workshop with the members during group meetings. Before Claudia left for Germany, she supported the group with Ksh 10,000 to invite a facilitator who would further offer more of financial literacy training to the group. The training helped members to have a better understanding of how best to manage funds in the process of operating their small business as shared below.
Success stories / Testimonies
Financial literacy has greatly helped group members reach some of their financial goals. It has enabled members to have a better understanding on how to budget and save money from their businesses, they can also now create plans that define their expectations, hold them accountable to their finances, and set a course for achieving important financial goals. In addition to saving and borrowing instantly, members receive assistance in making business proposals and business plans, empowering them economically and reducing poverty.
Below are some of the success stories or testimonies from some of the members of the groups:
Plista Apiyo Odiero
Plista joined the group when it started and was elected by members as the assistant chairperson. Plista contributes Ksh 1,500 every month, a contribution she has increased based on the performance of her business. From her saving with the Shalom Family Group, she has been able to take loans with flexible repayment terms.
“I have never opened a bank account,” said Plista. “I got scared hearing about the terrible experiences of my friends with the banks, including strict loan-requirement procedures. This discouraged from opening a bank account with any bank. So when we heard about how table banking has helped many people from Jackson who has been reading lots articles from the social media and wished to start a table banking group to help vulnerable families to start their own businesses, I readily joined.
I had nothing when I was starting, but I have grown my finances with the table banking. When I started my business, I had problems with my numbers despite the continuous help we always get from Jackson until he invited a good friend from Germany, Claudia who came and visited group members and shared a lot with the members on a number of things. She later organized a workshop which I got an opportunity to attend. In the workshop, Claudia offered us free financial literacy training which changed my understanding when it comes to managing finances. In the training, I learnt how best I can save money from my business. This has helped me a lot with numbers and my business has realized a great change since I now can analyze my business progress. We later received more training with the help of the funds left for the group by Claudia. Now I have expanded my business to include a small plastic store and groceries store. Even though we have managed to support each other through the table banking project, we are also faced by some challenges especially with the capital. Not everyone who applies for any amount would get it instantly and this has been a major challenge facing the group. It is for this reason that we urged well-wishers to join us in pooling resources to help us overcome poverty and illiteracy.”
Catherine Akoth
Catherine is also a member of Shalom Family Group. Below is her personal experience since joining the group:
“I joined the group when I had already started a small business at one of the fishing beaches on Rusinga Island, Litare beach. I had problems with running my business before joining the table banking group, especially with the capital and recording numbers. I religiously made small contributions for six months to the group that later gave me a significant loan in return. I invested all the money I took as loan from the group into my already existing business. Later, we had an opportunity to be trained on financial literacy which really impacted my business. The training instilled in me the need to keep business daily records, saving habit instead of spending habit as used to do before among other new skills that have been of great help to me and to our group members. Thanks to Claudia who introduced us to such a wonderful training! I have now expanded my business to a small roadside kiosk operator and a small canteen hotel where I sell food to fishermen mostly. This has also enabled me to employ two other fellow women who were totally dependent on their for everything and I look forward to introducing them to our table banking group in future thereby promoting women empowerment in the community.
Just like any other group, we are also faced with some challenges which have also tried to solve as group. Initially, we had the shortage of capital to allow a good number of members to take loans at a time until we unanimously agreed in our meeting to increase each member’s monthly contribution. This strategy has worked but has not effectively resolved the situation since members still miss loans as a result of lack of enough capital. There is need for more financial literacy trainings to help us with vast knowledge on business management. We as a group have a vision in future to firmly develop into a small micro finance institution that provide loans to women who are less privileged and create for them a platform where they can borrow money and start small businesses to help their families with low interests. With the love and unity we have in our group, believe that it will one day come to reality.”
Benter Tom
“My name is Benter Tom, am a member of Shalom Family Group from its onset. I joined this group while I was still working for someone, doing the business of selling fish and getting a commission at the end of the day. After saving with the Shalom Family Group over a period of time, I was advised by our Chairperson Jackson that before I apply for loan, I should think of a business idea which I could invest my money on. He later visited me at my home as a caring leader and told me that I had already established myself in the fish selling business and I already have ready customers, so instead of working for someone else I should think of doing the same business the loan I was just about to take from the group. This inspired me and when I took my first loan, invested it all into the selling fishing business and I was glad that Jackson became my first customer and gave more links with other people. Before attending the training which was introduced to us by a friend from Germany by name Claudia, who met us under the invitation of our chairperson, I personally had a problem with my numbers. But after undergoing a series of financial training even when Claudia had gone back, I have mastered some very important business skills that are very important when managing business. I can now separate business money, personal money, emergency money, saving from my business, profits. This has helped me grow my business over a period of time and I can now support my family. I now have a child in high school and two other kids in primary school whose school fees are paid from part of the profits I make out of my business. I now have plans to expand my employing one or two women to help do the marketing especially when the catch is good in the lake. I also wish to have fishing net and a small boat to employ two fishermen who will at all times sell to me so that I can avoid the completion since many people are also involved in this type of business.
With the current capital that the group has, it is uncertain whether I will be able to have enough funds for that since some of the time, one can easily miss not get a loan due to lack of enough money on the table. Table banking has changed my life positively and so grateful to all the group members and our leaders for their endless support to ensure that we like one big family where we need to help each other, thank you for putting a smile of hope in my life.”
“EROKAMANO”
Penina Adhiambo
“I am the oldest in this group. I joined this group because I was not very familiar with banks and other lending institutions. I had always wanted to start my own business to help me take care of my children and grandchildren. As a widower, it was very hard support my family, so when I joined Shalom Family Group, I had nothing and out of the love and unity in the group, I was allowed to join without paying the registration fee which I later paid when I officially started saving with group.
According to group rules and regulations, as new member, I was not allowed to borrow money immediately since according the rule, before taking loan one has to share her business idea with the group members and must save for a given period of time. I had to be patient as I wait for my loan maturity date and at the same time was consulting with other members to guide on the best business that suited my age. I was later convinced to start fish selling business especially to homes. When I first took my loan of Ksh 14,000, I invested this money into this business and I have seen how it has changed my life.
I usually wake in the morning as early as 7am to go and get fish from the fishermen. I always visit homes to sell my fish. Whenever the catch is so much, I usually hire a motorcyclist (Bodaboda) to help me do the delivery. The major challenge I had when starting was how to take my numbers until financial literacy training was introduced to us by a friend. Thanks to Claudia for the support.
Table banking has changed my life greatly since has made it possible for me to help my grandchildren and child go to school and also it has allowed me to put food on the table. The major challenge we face as a group is the inadequate funds to fully support members in times of need. As an old lady I would wish that I get more trainings on business management, we have a very able team of leaders who are young and are more educated and I believe if they are empowered , they can take us forward as united and enlightened group.”
