Microfinance is defined as a service that, “offers poor people access to basic financial services such as loans, savings, money transfer services and microinsurance (Add footnote).” While we often take it for granted, access to financial services is a very essential component to our lives. Imagine not being able to securely save money or access loans for school, cars, homes, or business activities. The ability to save and access loans, which fuels new entrepreneurial activities everyday, is just as important for the poor as it is for us.

During the Kenya Teams’s trip in 2009, we were greatly moved by a few pastors that were dedicated to spreading the gospel by improving the economic climate of Kibera. They shared with us how difficult it was to go into a home to share the Gospel when the families were starving. Three years ago, the pastors decided to start a “self-help group (SHG),” which are relatively common in Kenya. A self-help group is organized by a number of individuals who contribute a certain amount of money on a regular basis to a savings pool. Occasionally loans are disbursed from the pool for one of the group member’s businesses. That member is then responsible to the group to pay back the money with interest. The savings pool then grows and enables more loans to be disbursed, starting or improving businesses through small investments by our standards.

The three Kiberan pastors that organized the SHG have plans for bigger projects to bring about economic development in the slums of Kibera. In the future, DHI hopes to expands to help sustainable projects such as this one which incorporates the Gospel into economic development activities.

Footnote reference: The Consultative Group to Assist the Poor, 2009, www.cgap.org.