The Mutunga Partnership Helping the Poorest in Kenya Help Themselves

Melbourne, Australia 17, 2010 The Mutunga Partnership together with its partner ‘Africashare Partnership has begun its micro-finance initiative in Kenya, by providing training and mentoring to 10 groups of borrowers in two communities in the Mavoko/ Kitengela and Tala and Kangundo districts. Loans of between $100 and $200 will be provided to selected borrowers to invest in their micro-businesses.

Micro-finance is a means of tackling poverty at its root, offering a hand-up, not a hand-out. A micro-loan of just $100 can permanently lift a borrower and her/his dependants out of poverty and, in time, provide employment for 3-4 other persons.

Micro-finance encourages savings, as the loans are savings-linked. The experience in this sector has consistently shown that on-time repayments average 98% - a record that Western banks would &39;die for&39;. In well-designed programmes, default is extremely rare, as the group acts as collateral, based on a culture of mutual obligation.

Furthermore, repaid loans are recycled amongst the borrowers, enhancing capital. Over a 5 year period, an initial injection of $12,000 grows a consolidated fund of over $50,000!

The poor in Kenya are enterprising, creating enterprise where others would not even see any possibilities, and women are in the front line.

The Partnership has a plan to establish micro-finance initiatives in twenty communities in Kenya this year, catering for 1600 borrowers. The average borrower may support up to 8 other family and extended family members. This means that we shall lift almost 13,000 people out of poverty this year at a cost of about $35 per person!

In succeeding years we plan to extend this initiative throughout Kenya, the rest of Africa and the Caribbean and Guyana. Micro-finance is efficient, cost-effective, and our model directly targets the beneficiaries. 100% of our donations go directly to providing loans for our borrowers, and to the proportional cost of delivering the services and strengthening the capacity of our partner, the &39;Africashare Partnership.&39;

Of the 1 billion people globally living on less than $1 a day, about 18% have had access to micro-finance initiatives! This is a critical task. It is a good news development story. This approach helps the poor in their own endeavour to help themselves. And it gives the rich the chance to work with the poor as equal partners in an enterprise to rid the world of the scourge of chronic poverty. It&39;s an opportunity!

We are anxious to receive your support and involvement. Our work is detailed in our website http://www.mutunga.com. Please pay us a visit today and join us by supporting this initiative.