Going to scale with savings groups, conditional cash transfers, and financial inclusion.17th Microcredit Summit, Merida, Mexico. September 3-5, 2014

1. Reaching the Poorest in Kenya
through Savings Groups
Paul Rippey
Fellow, Carsey School of Public Policy
Advisor, FSD Kenya, FSD Zambia
Co-Founder, editor Savings Revolution

2. Two reasons to reach the poorest
• We say we do
• The poor need to save more than anyone else.
– One way out of poverty is simply to have money
– Saving builds assets

3. SGs and the poorest
• Kenya data may not be relevant to other
countries and other contexts
• SGs reach the poor, but struggle to reach the
poorest

4. FSD Kenya Quality of Delivery Study
• Field work – 2013
• Conducted 1,370 household interviews
• 463 households had at least one SG
member
• Viewed 100 SG meetings, interviewed 50
trainers.
• Interviewed 86 former members

5. FSD Kenya Quality of Delivery Study
• Reason most often given by former
members (37%) for dropping out:
“Couldn’t afford to save”
• Corroborated by Group, Trainer and
Member interviews

6. 28% 27%
43%
88%
30%
24%
32%
71%
Below poverty line Bank account "Formal other" (Sacco,
cell phone)
Own cell phone
Wealth indicators from FSD Kenya
Quality of Delivery Study
SG Members Non members

7. Some quotations from SEEP Social
Performance Study interviews
(2014, Interviews by Paul Rippey and Eloisa Devietti)
“Better off people are early adapters, but the poor
eventually join” (Maybe not true everywhere)
“It’s not that we systematically exclude the poor - it’s
that we don’t make the effort to include them”
“Kudos to many trainers who have gone repeatedly to
villages to encourage poor people to join SGs”
“Social grants level the playing field a lot"

8. CRS Working to Include Poor Better
• Pro-poor messaging, both with villages and
trainers
• Re-examining incentives
• Doing institutional mapping to look for pro-poor
program partners, including Cash Transfer
programs

9. The interesting case of Savings Groups and the
Hunger Safety Net Program in Northern Kenya

10. Northern Kenya, a special case
The Hunger Safety Net Programme – HSNP – is a
GoK/DFID program in the North of Kenya where
semi-pastoralists have been suffering from changes
in climate.

11. Northern Kenya, a special case
HSNP asked CARE to select recipients of cash
transfers, which were initially Kshs1500 (about
USD17) per month and since were raised to 2000.

12. Northern Kenya, a special case
With support from FSD Kenya, CARE formed Savings
Groups, with no reference to whether members
were HSNP recipients.

13. Northern Kenya, a special case
In fact, there was there is little difference between
recipients and non-recipients. Sharing the wealth is
a strong cultural value, and social obligations lead
recipients to distribute their money widely within
the village

14. CARE simplified meeting procedures, record
keeping, and training to reduce travel time and cost.

15. There is anecdotal
evidence that
program has positive
social impact and
good group survival –
but no data.

16. Thank you!
www.Savings-Revolution.org
PaulRippeyPDX@gmail.com