Undugu Fair Trade Limited (UFTL) was established in 1995 to coordinate market access for marginalized communities in Kenya and neighboring countries, focusing on sustainable sourcing through fair trade initiatives. The organization supports approximately 800 families by enhancing skills in crafts production and providing reliable market outlets while promoting economic opportunities in rural areas. UFTL aims to improve community welfare through capacity building, diverse product promotion, and fair compensation for artisans.

1. UNDUGU FAIR TRADE LIMITED
BRUSSELS POLICY BRIEFING No.44
EXAMPLE OF A PPP PROMOTING
SUSTAINABLE SOURCING THROUGH
FAIR TRADE

2. BACKGROUND UNDUGU
SOCIETY OF KENYA.
-USK was incepted in 1973 by a church
missionary worker.
-- As a response to the plight of street
children in Nairobi.
-- Just a symptom of a bigger problem
Poverty !
-- First Rehabilitation initiatives followed
by socio economic intervention
-- Identified need for Education programs
for the Youth (Skills for life) and economic
interventions for the families.
-- Salient issues called for Skills
development as a means of socio
economic support.
-- Communities had basic skills in crafts
production – traditionally acquired in the
rural communities prior to venturing for
non existent jobs in the city.
-- Required a multiple facet approach for
income generation activities both within
the urban slums and rural areas – stop
gap measure.

3. USK PROGRAMMES
USK – PROGRAMMES: Three Pillars.
1.Children and Youth – street children/
urban poor.
2. Education and Training – Informal basic
/skills.
3. Community Empowerment – Socio-
Economic interventions through
S.H.G/C.B.O.
-Skills acquisition and development
within the Handicrafts sector a Cross
cutting potential among the slums
dwellers and rural communities.
- Main Economic opportunity to earn
income and sustain their livelihoods.
-- Enhanced capacity building in
production and Business skills.
-- Set up an Income Generating program
in 1982.
-- Opened up local market outlets – 2
shops and events sales in Nairobi –
popular Undugu Beat 75 Band – Youth
activity.

4. UNDUGU FAIR TRADE
LIMITED.
-Established a full fledged Fair Trade unit
in 1995 to coordinate market access.
-- Identify diverse crafts products and
expand product portfolio from
marginalised communities across Kenya
and beyond into Tanzania , Uganda and
Rwanda.
-- Seek both local and International
markets .
--Got linked to Alternative Trade
Organizations in late 80’s which later
became Fair Trade Organizations.
--Experienced tremendous business
growth in Exports and local retail.
-- Re branded as the first Fair Trade shop
in Africa.
-- Up scaled our local and Export
markets outlets giving sustainable
incomes to about 800 families across
Kenya.
- Continued growth called for a separate
entity with a business focus to support
the unemployment problems in Kenya.
-2010 Undugu Fair Trade Limited was
incorporated as a joint venture between
USK and Awendo Foundation as a
strategic partner.

5. UFTL MANDATE
--Managed a challenging business re
structuring process in the face of
global economic down turn with the
following mandates.
-Provision of marketing support to
disadvantaged producers and artisans
who have potential to positively
change their lives by exploiting their
crafts skills and materials found in
their environment.
- provision of reliable market outlets
both local, regional and international.
-Build capacities of producers for
efficient and effective supply chain.
- Promote diversity of products.
- Collection and dissemination of
market information.
- Contribute to communities improved
welfare.

6. UFTL SUCCESS.
-Offering work opportunities to about
800 families across Kenya producing
Soapstone Carvings, Wooden Carvings,
Basketry and Jewellery. (total number of
household – about 12,000)
-Investing in traditional skills with
contemporary designs for production of
market focused modern collections for
home accessories , decorations and gifts.
-- Provision of interest free pre-financing
of orders to producers through buyer
advance payments as a requirement of
Fair Trade or otherwise ( Export credit
facilities offered by ethical financing) for
non FTO
-- Ensures producers get value for their
work – Fair wages/prices.
-- Voluntary Savings and Investment
schemes among producer groups through
principal of 2/1 – Producer saves 2 cents
UFTL tops up with 1.

7. IMPACT – UFTL.
-Creating Economic opportunities in
the Rural areas hence controlled rural
urban movements in search of jobs.
--Producers and artisan can have a
decent livelihoods that guarantees
ability to meet their daily needs for
Food, Clothing , decent houses, good
education for their children, access to
health facilities and invest in
alternative income sources.
--Producers sensitised and supported
to access /register for NHIF, Pensions
and access to GOK devolved funds
-- As social Fair Trade enterprise
continued investment in capacity
building, market access and
community development.

8. A PRODUCER QOUTE!
It was like I never existed before
Undugu and it never occurred to me
that I was searching for wealth
elsewhere when it was readily
available and accessible within my
village. The best way to pay back
Undugu is to employ my privileged
status in the service of others”! Says
emotional Haron Nyamweya.

9. “FAIR TRADE MAKES A BIG DIFFERENCE THOUGH THE STRUGGLE CONTINUES”
THANK
YOU!