Family Economic Empowerment in the Kenyan Slums

HOUSEHOLD ECONOMIC STRENGTHENING REPORT 

Many micro, small, and medium enterprises (MSMEs) in Kenya saw their incomes disappear overnight because of COVID-19. With limited emergency reserves, about 75 percent of them were at risk of collapsing, according to a Central Bank of Kenya survey conducted in April 2020.  These small businesses play a crucial role for economic development of the communities. They are a vital engine in economy, since they drive growth, create employment especially among youth and vulnerable families, thus spearheading innovation. They also provide a customer base to larger companies across the supply chain and supply vital goods and services to companies and households, helping to keep the wheels of the economy in motion. Macheo had to come up with ways that encouraged the vulnerable families to keep their businesses a float.

Our main focus was to ensure that entrepreneurs were supported as well as equipping our beneficiaries with skills and capabilities they needed to rebuild and grow after the crisis. For example, most of them benefited from additional training in business scenario planning or managing scarce financial resources. 

We also gave out relief funding to cushion the businesses and the families whose life was disrupted due to the corona pandemic. The cash transfers were unconditional and the beneficiaries would pay for accumulated debts, pay house rent, buy medicine or just buy food. In this effort, Macheo also worked with these families to develop resilience strategies and to help them reimagine their business going forward. 

Success story

32-year-old Diana* lost her job after the lockdown was introduced in Kenya. "I was absolutely devastated after I lost my job that enabled me to pay my bills and provide for my family. I continued living with my family in a house we had rented but after two months of joblessness, I was already sinking into poverty,” says Diana. “I had to come to terms with the fact that I wouldn’t be able to pay my rent and provide food for my children as I frantically tried my best to come up with a solution to my problems.” she adds

Macheo met Diana at a point she was almost chased out of her house by the landlord since she had three months rent arrears. Her two children often missed meals and were living at the mercy of well-wishers. She had decided to take the plunge and set up a business but she didn’t have any money to launch the business. Diana was then enrolled in Macheo’s household economic strengthening intervention so as to start her own business. Diana decided to start up a grocery which was a major boost and has enabled her family to have a stable income. She can `now provide for her children and no longer worries about what her children will eat.  

“It's something I had been thinking about doing, and this gave me a push to do it. I suddenly had a lot of free time, so I managed to set everything up immediately after receiving Macheo’s support," Diana says. It was very devastating and agonizing when I couldn't provide for my children. If it were not for Macheo my children could be starving, they wouldn't be healthy and happy as they look today,” she adds. Diana’s business has been thriving and she hope to expand it when the economy fully opens. 

We thank you for making this possible.