THE SEEP NETWORK’S

POVERTY OUTREACH WORKING GROUP

PROMISING APPROACHES IN MF/MED SERVICES FOR VERY POOR PEOPLE

CASE STUDY # XXX

OMENA VALUE CHAIN PROGRAM

Linking Very Poor Women to High Value Export Markets in Kenya’s
Fishing Industry

KENYA BDS PROGRAM

Funded by USAID
2003-2009

Case Study prepared by Tracy Gerstle, consultant, in conjunction with:

David Knopp and Nancy Amayo, Emerging Markets Group, Kenya BDS

September, 2007

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 Table of Contents
1. Context ......................................................................................................1
2. Organizational Framework.........................................................................9
2.1. International Organization.......................................................................................9
2.2. Local organization.................................................................................................12
3. Description of “Very Poor” Target Group...............................................20
3.1. Individual and Household conditions
........................................................................................................................................20
3.2. Socioeconomic conditions.....................................................................................21
4. Poverty Targeting and Assessment..........................................................25
4.1. Poverty measurement practices..............................................................................25
4.2. Available Poverty Data..........................................................................................26
4.3. Poverty Targeting...................................................................................................26
5. Products and Services..............................................................................28
5.1. Financial Products..................................................................................................28
5.2. Microenterprise Development Services.................................................................30
5.3. Non-financial Services...........................................................................................32
5.4. Design and Product Development: .......................................................................34
5.5. Implementation Process ........................................................................................39
......................................................................................................................................40
6. Results......................................................................................................41
6.2. Impact....................................................................................................................42
6.3. Cost Effectiveness and Sustainability ...................................................................44

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Executive Summary:

Kenya BDS is a 6-year USAID-funded program implemented by the Emerging Markets

Group with a budget of US$6 million. The program’s objective is to increase growth and
incomes among rural micro and small enterprises (MSEs) via 1) access to markets; and 2)
commercial access to skills, resources, and information needed to compete in those
markets. The program works in several promising value chains where there is
opportunity for increased competitiveness and scale in terms of the numbers of MSEs
that may increase their incomes over the long term. To date over 63,583 MSEs are
accessing skills, resources and information that enable them to compete in higher value
markets and 17,578 MSEs are linked directly to buyers selling their products at a
premium in Kenya and abroad. Kenya BDS is recognized as a model for many
subsequent value chain programs that have followed—given its success in enabling
thousands of MSE to link into higher value markets viably.

This case study highlights the methodology that Kenya BDS first developed in tree fruits
value chains (avocado, passion and mango fruit) to commercially link over 10,000 small
farmers with 13 exporters and processors, and how the methodology was adapted to work
in a more challenging context with very poor clients—women fish dryers in the Omena
Fish Value Chain in the Nyanza Province on the shores of Lake Victoria. Today in the
Omena Value Chain 434 women are selling grade one omena for export to Malawi and in
the coming season this will increase to approximately 642 women in 27 groups across 12
beaches.

Client Targeting
Kenya BDS used geography and value chain selection as a means of targeting the very
poor. The Omena Value Chain Program is based in the Suba District of the Nyanza
Province, which at the time of the program design was considered one of the poorest
districts in Kenya. A 2005 nationwide poverty mapping, found that Nyanza Province
contributes the third largest number of very poor people to Kenya’s total. Similar to the
Western Province which is the poorest province in Kenya, between 60% to 70% of the
population (headcount index), in the majority of districts in the Nyanza Province, live
below the national poverty line, including Suba District.

Equally important in the selection of Suba was the role that the district plays in Kenya’s
profitable fishing industry and the potential this offered. The district supplies 25% of the
total fishing catch for Lake Victoria and is the largest source of fish for Kenya, pumping
over US$44.2 million or (3.5 billion KES) annually into the Kenyan economy. Fishing
provides 10,000 direct jobs in Suba district and another 20,000 indirectly.1 The main fish
harvested from Lake Victoria are nile perch, tilapia and omena, otherwise known as
minnow.

The Omena Value Chain was of particular interest, since there are large numbers of very
poor women working at a near subsistence level drying and selling omena. These women
are very vulnerable, since their operations are of such a small scale that they have no

1
For all KES to US conversions in this case study, the nominal exchange rate provided in Table 1.1 is used.

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bargaining power and little capital. This forces many of them to rely on the traditional
practice of Jaboya, where the fisherman sell fish only to those women who are willing to
have sexual relationships with them. As a result Suba district has the highest prevalence
of HIV/AIDS in Kenya at 35% versus the national level of 7%.

Program Methodology
Kenya BDS selects value chains that have high growth potential, as well as large
numbers of microenterprises currently working in the chain, or where there is an
opportunity to significantly increase the number of MSEs participating successfully. A
value chain analysis is then conducted to identify market inefficiencies along the value-
chain and particularly the constraints for MSEs to contribute to and benefit from their
participation in the chain. As critical constraints are identified, the program designs
interventions to address and overcome these challenges thereby ensuring MSE
participation and the ongoing competitiveness of the chain. These interventions are
financed through a “Market Intervention Fund” - a centralized pool of funding which
allows Kenya BDS to operate flexibly, and to introduce new interventions on an ongoing
basis in response to changes in the market. It also encourages pilot-testing and
innovation – after the one year period, those interventions that achieved impact and
commercial viability are ramped up and replicated. Those interventions which achieve
less impressive results are either discontinued or modified; however, always provide
lessons learned.

Another important element of Kenya BDS is partnerships with lead firms. Kenya BDS
seeks out large firms where there are potential win-win opportunities for these firms and
MSEs to trade with one another. These large private firms act as technical champions for
the project, bringing the critical skills, information, markets and sometimes financing
needed by MSEs to upgrade their productivity. These firms often invest financially in the
program and the MSEs as well, since it offers them opportunities to grow and stabilize
their supply lines.

Selecting a value chain

To design the Omena Value Chain Program, Kenya BDS first conducted an analysis of
the fish subsector, focusing specifically on the omena, nile perch and tilapia value chains.
This analysis looked at the commercial potential of fish and what interventions would be
needed at the industry and MSE levels to provide for the future competitiveness of the
subsector. Omena was chosen as one of the value chains to focus on, since it employed
large numbers of poor, women-owned microenterprises, whose owners were very
vulnerable given their operations were at little more than a subsistence level. Importantly
in addition to offering the opportunity to work with a very poor and vulnerable group, the
omena value chain showed commercial promise. This ensures the commercial viability
of the program and offers opportunities for sustainability and scale.

Omena accounts for 31% of the total catch landed in Kenya. The fish are caught at night
by fishermen with lamps, then on-sold to women artisanal processors in the morning.
The women dry the omena on the ground and sell them a couple days later to brokers.
This practice, which is widespread throughout Lake Victoria, has typically resulted in: 1)

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poor quality omena with ground-based drying; 2) poor marketing channels with spot-
market brokers; and 3) lack of credit to purchase omena from the fishermen, leading to a
sex-for-fish industry among the women processors. If these conditions could be
addressed commercially, there was an opportunity for the women to upgrade their
production and achieve significant increases in income, which would also make them less
vulnerable to Jaboya.

Working with the private sector and lead firms

Promisdor’s steady market and willingness to provide technical assistance and financing
to the women upfront acted as the catalyst to quickly get the program off the ground.
Promasidor had a strong commercial incentive to participate, since it needed a greater and
more steady supply of grade one omena to serve export markets in Malawi and other
parts of Africa. Working with the women would provide this. Another benefit of
working with Promasidor is that it allows for greater expansion of the program, since by
partnering with the private sector the program operates with few subsidies, while
reaching larger numbers of the very poor through private investment rather than relying
on limited donor funds.

To start the program, Kenya BDS hired three field extension officers (FEO) with the
approval of Promasidor. The role of these FEOs is to provide the women with training
and technical assistance in drying the fish to Promasidor’s specifications; to assist the
women in forming groups and setting up systems to manage the groups; and to administer
disbursements and repayments of credits for racks and working capital (to purchase the
fish.) Kenya BDS mentored and trained these FEOs for three months, while fully
covering their salary. They then became full-time salaried employees paid by
Promasidor.

Clustering the women into groups

Often the challenge of working with large numbers of MSEs is the sheer numbers of
enterprises and their dispersion over a wide geographical area. To address this, Kenya
BDS assisted the women to form business-minded processing groups. This enabled
Kenya BDS and Promasidor’s staff to work more easily with the women, since they
would work with a group rather than one on one. The group structure also provides the
women with moral support and group momentum. Using a curriculum developed in the
tree fruit value chains, the women received training by Promasidor’s field extension
officers in processing omena to meet grade one standards, individual and group
bookkeeping, leadership and mobilizing group savings.

Introduction of new technology & credit

To ensure the women could produce grade one omena, Promasidor introduced a rack-
drying technology among the women groups, and provided construction materials on
credit. To mitigate the practice of “sex-for-fish,” Promasidor also provided the women
working capital, so that the women could purchase larger quantities of fish from the
fishermen each morning. A total of 247 wooden racks have been constructed by the
women to date, with plans to construct more in the coming year. The racks enable the
women to dry the fish to 8% moisture content required and moved the drying off the

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ground where the fish were often contaminated. The new process is also much less labor
intensive, allowing the women to dry more and with less effort.

Adaptations for Working with the Women

Generally the greatest risks for MSEs to upgrade their production are the costs involved,
and many therefore opt not to upgrade because they do not have enough assurances or
personal comfort that greater income streams will result. This risk aversion is further
heightened when a client is very poor and has little leeway to take business risks.
Promasidor’s willingness to finance the upgrading at cost lessened this risk for the
women, as did the guaranteed market Promasidor offered for the product. Clustering the
women into groups also lessened the risks, since they could share the costs of upgrading
together, while providing one another with mutual support. Promasidor also agreed to
take on a larger number of field extension staff, committed to working regularly with the
women to support their production and business groups.

Kenya BDS is also working with the women to better manage the four month period
annually when Omena fishing is banned in Suba District and they have no incomes or are
forced to migrate to other areas in search of work. The women are encouraged to save a
percentage of them income as a group, which can be used to supplement their income
during the fishing ban or to diversify into other businesses.

Currently Kenya BDS is further refining the group training and on-going support
provided to the women groups by Promasidor’s FEOs, since it was found that the women
need even more support than was initially anticipated. Kenya BDS based its model of
support upon its experiences in working with groups of microenterprises in the tree fruit
value chains. The greater levels of support needed by the women may be due to the
lower levels of education (in terms of literacy, innumeracy) among the women compared
to the tree growers and their more vulnerable position.

Lessons Learned
In implementing the program, Kenya BDS and Promasidor face two main challenges to
date: 1) successfully managing the credit for racks and working capital and 2) providing
competitive pricing to sufficiently dissuade the women from side-selling the dried fish to
other buyers.

Promasidor was new to managing a credit program for its suppliers (the women) and
previously did not have sufficient systems to manage a lending program both centrally
and at the level of its new field extension agents. As a result there were problems with
the management of the loan disbursements and repayments by the FEOs and the women
were also found to have difficulty in managing the credit. All three of the FEOs were
found to have cash balances they could not account for (in terms of the disbursements
and many of the women’s groups were delinquent on their loans or their loan balances
did not reflect all of the repayments they had made.) Kenya BDS is now working with
Promasidor to establish better central management systems as well as improved record
keeping systems at the level of both the FEOs and the women.

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Another challenge to the program is that many of the women are selling their fish to
outside brokers. The women and Promasidor had signed a memorandum of
understanding, stating for a fixed price (higher than the average price of dried fish over
the entire year) that they would exclusively buy and sell to one another. However, when
flooding lessened the anticipated yield for the year and prices shot up, the guaranteed
price offered by Promasidor was no longer competitive. As a result the total fish sold to
Promasidor was less than expected. In the coming season, Promasidor will still not find
it profitable to purchase fish from the women when prices rise above the guaranteed
price. So to meet Promasidor’s needs, Kenya BDS is working with Promasidor to
develop a strategy whereby the women will be encouraged to process larger quantities
when the guaranteed price is competitive, so that Promasidor can purchase sufficient
supply for the year. When prices then are higher than Promasidor’s guaranteed estimate,
the women will have the choice to sell to other buyers.

Another broader lesson, beyond just the scope of the Omena Value Chain is that value
chain programs that target the very poor may be less scaleable than those that work with
the poor. In comparison to the tree fruit value chain programs in which Kenya BDS
works with poor MSEs rather than the very poor the program is reaching tens of
thousands of MSEs, rather than the few hundred participating in the Omena Value Chain
program.

Accomplishments/Impact
This program is still ongoing so program impact and accomplishments are still in
progress. For the 642 women participating in the program, the benefits of commercially
linking to Promasidor are both an increase in the gross margins they generate and in their
confidence. To date the 624 women engaged in the program have sold over 11 million
KES to Promasidor, generating US$ 14,660 (1,158,127 KES), or approximately 10%
more in revenues, than if they had sold the same amount of fish on the open market. The
women are also processing more than they had previously, given the working capital and
technology they are accessing. However, how much more in terms of volumes and
therefore income cannot be included, since a baseline is not available. The women also
report that participation in the program has increased their self-confidence and feeling of
empowerment. They can now engage in the fish trade without participating in Jaboya if
they choose, putting them as less rish for HIV/AIDS. Some of the women groups are
also successful in mobilizing group savings and they are using these savings to diversity
in additional activities in the Omena value chain to further increase their margins (by
buying fishing boats for example) or to stabilize their income during the low season.

Another important aspect in terms of impact is the program’s ongoing sustainability.

Kenya BDS established this program with minimal subsidy, paying for three months
salary to the FEOs. All otherr costs and the business transactions undertaken in the
program are covered by Promasidor and the women. This ensures the future of these
linkages between the women and Promasidor, since the links are based on commercial
incentives rather than donor funds. What is less clear, is how the program might be
further scaled without the involvement of Kenya BDS. Two possibilities are that if
Promasidor continues to grow the market, it will need still more fish and will have to

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enroll more women into the program. Another possibility is that other lead firms
working in the fishing industry will observe and then copy the Promasidor model to
further develop their supply chains. In its work in the tree fruits sector, Kenya BDS was
able to expand the program rapidly since all of the export firms not included in the
original pilot, later approached Kenya BDS for inclusion based on the results of the
program.

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1. Context

1.1. Country Socioeconomic and Poverty Data

Table 1.1. Country Statistics

See Appendix 1 for a list of standard resources to be used to complete the following
table. For large countries, if a program is implemented only in a given State or
Province, then data (if available) at State/Province level should be provided as well.
1.1.1. National Currency Shilling
Amount Year
1.1.2. Population (millions)(1) 34.3 2005
1.1.3. Population density per square kilometre(1) 59.09 2005
1.1.4. Percentage urban / rural population(2) 25/75 2004
1.1.5. Inflation (1) w/GDP deflator 4.3 2005
1.1.5. Nominal Exchange Rate (current, X Currency per US$1) (6) 79 KESs 2005
1.1.6. PPP Exchange rate (5) 18.425 2000
1.1.7. HDI value .474 2003
1.1.8. HDI ranking 154 2005
1.1.9. GDP/Capita (PPP US$) 1037 2003
1.1.10. Local currency equivalent of $1-a-day international poverty 35.62
2005
line
1.1.11. Population below national poverty line (%)1 40 1995
22.8 1990-
1.1.12. Population living below $1 a day (%) (4)
2003
58.3 1990-
1.1.13. Population living below $2 a day (%)(4)
2003
1.1.14. Population living below $2 a day (%) NA NA
1.1.15. Population growth rate* 2.3 2005
1.1.16. Life expectancy* 49 2005
1.1.17. HIV prevalence (% ages 15-49) 6.1 2005
1.1.18. Malaria cases (per 100,000 people) (4) 545 2000
33 2000-
1.1.19. Population undernourished (4)
2003
20% 1996-
1.1.20. Children underweight(2) moderate & severe
2005
Male 78% 2000-
1.1.21. Adult literacy (3)
Female 70% 2004
Male 82.2%
1.1.22. Net primary enrolment ratio (2) 2004
Female 82.0%
Male 32.1%
1.1.23. Net secondary enrolment ratio (2) 2004
Female 27.6%
1.1.24. Physicians per 1,000 people .1 2000
1.1.25. Health expenditures per capita (5) 29.76 2004
1.1.26. Gender-related development index (GDI) rank (4) 117 2003
1.1.27. Gender-related development index (GDI) value (4) 0.472 2004
(1)World Bank. World Development Indicators. 2005.
1.1.3 Population density varies widely in Kenya from 230 per square km in rural
areas to 3 per square km in arid areas.

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(2)Millennium Development Goals (MDG) Status Report for Kenya. 2005. UNDP.
(3) UNICEF
(4) Human Development Report
(5) World Health Organization. World Health Report. 2003. & Purchasing Power Parity
Report. 2000.
(6) Interbank rank on 1/1/2005 from the website ww.oanda.org

Suba District
Amount Year
1.1.2. Population* 190,000 2006
1.1.3. Population density per square kilometre* 180 2006
1.1.4. Percentage urban / rural population
1.1.5. Inflation
1.1.5. Nominal Exchange Rate (current, X Currency per US$1) same
1.1.6. PPP Exchange rate
1.1.7. HDI value NA
1.1.8. HDI ranking NA
1.1.9. GDP/Capita (PPP US$)
1.1.10. Local currency equivalent of $1-a-day international poverty
line
1.1.11. Population below national poverty line (%) 1
1.1.12. Population living below $1 a day (%)
1.1.13. Population living below $2 a day (%)
1.1.14. Population living below $2 a day (%)
1.1.15. Population growth rate*
1.1.16. Life expectancy*
1.1.17. HIV prevalence (% ages 15-49)(1) 35%
1.1.18. Malaria cases (per 100,000 people)
1.1.19. Population undernourished
1.1.20. Children underweight
Male
1.1.21. Adult literacy
Female
Male 96.9
1.1.22. Net primary enrolment ratio (2) 2004
Female 96.2
Male 31.9
1.1.23. Net secondary enrolment ratio (2) 2004
Female 23.1
1.1.24. Physicians per 100,000 people
1.1.25. Health expenditures per capita
1.1.26. Gender-related development index (GDI) rank NA
1.1.27. Gender-related development index (GDI) value NA
(1) Kenya Ministry of Health.
(2)Millennium Development Goals (MDG) Status Report for Kenya. 2005. UNDP.
1
Explain how the national poverty line is defined: World Bank PPP. National poverty
rate is the percentage of the population living below the national poverty line. National
estimates are based on population-weighted sub-group estimates from household surveys.
World Bank staff estimates based on the World Bank's country poverty assessments.

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1.2. Local context – target area
1.2.1. Briefly describe local socioeconomic conditions
1.2.1.1. Geographic reference of location and size of population
---- List the area (province, state, district …) where the program is operating and
whether this area is predominantly rural, peri-urban or urban (or mixed), the size of
the population in that area, and if possible provide a map of the country which
highlights the target area. Try to be as detailed as possible in describing the
geographical target area: for instance, if within a given province, only certain
districts are targeted, make sure to mention which ones and how they differ from
others (remoteness, population density…). Overall poverty data of the geographical
target area are to be described in 1.3.1.

Kenya, Nyanza Province, Suba District

Administratively, Suba district is divided into five administrative divisions,
Mbita/Rusinga Island; Gwasi; Mfangano; Central and Lambwe. The district covers as
area of 1,055 square kilometers, of which three quarters is covered by Lake Victoria.
The district is predominately rural, with a mix of small scale farms and fishing
communities in the divisions bordering or part of Lake Victoria.

Kenya BDS operates on 17 beaches on Rusinga and Mgangano islands: Rusinga

(Nyagina, Luanda Rhombo, Litare, Kolunga and Nyachebe, Gumba, Tabla), and
Mfangano (Sena, Wakula, Nyawalongo, Milundu, Konyahera,Yokia, Ugina, Mauta,
Mrongo and Nyakweri).

The program serves rural island communities. Rusinga Island can be reached by a
causeway linked to Mbtia Point the most urban area in the district; however the roads
to Mbtia are poor and often unaccessible during the rainy season due to flooding.
Relative to other districts in the Province Mbita is more of a small town than a city and
offers few services.. Mfangano island is reached by boat or air. From both islands it
takes approximately 1.5 days to travel to urban areas and back, including the Homa
Bay district which borders Suba district and is the location of the nearest bank and
government health center.

1.2.1.2. Local population characteristics:

--- Describe for population in general (not just target group) within the target area,
and explain as appropriate how this is different from the country-wide context. Target
group characteristics are to be described in Section 3.

1.2.1.2.1. Ethnic groups

--- List the main ethnic groups within the target area, and mention if significantly
different from country’s overall ethnic composition.

The Suba district is named after the Suba people, who speak the Suba language.
They migrated to Kenya from Uganda and settled on the Lake Victoria islands of
Rusinga and Mgangano. They are among the smallest tribes in Kenya, with the total
population estimated at 30,000. Although they maintain a distinct ethnic identify,

3
 the Suba language is considered endangered, given the influence of the neighboring
Luo tribe with which they freely intermarry.

The Luo are the second largest ethnic group (12%) in Kenya, after the Kikuyu (20%),
with whom they shared major political power in the first years of Kenyan
independence (1963). In the Suba district they are the largest ethnic group,
comprising 18% of the population. Formerly pastoralists, they are now settled
agriculturists who also keep many cattle. Outside Luoland, the Luo are now found
throughout eastern Africa as tenant farmers, agricultural laborers, and urban workers.
In Suba district they are engaged primarily in fishing and subsistence farming.

Kenya BDS works primarily with the Luo and Suba peoples.

1.2.1.2.2. Most important economic activities

--- What are the main economic activities of people living in the target area? Is
population within target area mainly involved in agriculture, animal husbandry,
fishing, industry, trade, services? Be more specific as needed: for instance, what
type of industries, services? Is there significant migration for work to other areas?
What types of economic activities are typical for this area when compared to
national level? (if agricultural economy, more details can be given under 1.2.1.4.).

The entire population is focused on the fishing industry, coupled with subsistence
farming in millet and rice. During the low fishing season male fisherman and some
of women targeted in the program, will return to inland villages for subsistence
farming or migrate to other islands where fish are more plentiful.

1.2.1.2.3. Cultural and religious background

Most Kenyan Luo and Suba are Christians.

1.2.1.3. Natural resources, economic activities, markets, unemployment

--- What are the most important natural resources in the target area? What type/size
of markets are available and where are they located?

The primary natural resource utilized for local livelihoods is the fishing stock
available in Lake Victoria; however due to over fishing and pollution fishing stocks
are in decline.

See Section 3.2.3.1 for information on market access.

1.2.1.4. For rural areas only: most important crops and livestock activities, water
supply (irrigation, rain fed), seasons and number of harvests, land availability,
ownership patterns and contracts.

--- Also indicate extent of subsistence farming versus cash crop farming..

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 The source of water for farming is Lake Victoria and rain with the most important
crops including livestock, maize and cassava, all on a small-scale, subsistence basis.
Most agriculture is rain-fed.

Seasons for Omena:

High season: August through November (3-4 Months)
Low season: December through March (3-4 Months)
Season when fishing is banned in Subda district: April through July

1.2.1.5. Occurrence of droughts, floods, natural disasters or conflicts

In recent years, rainfall patterns in the Suba District as in the rest of the Lake Districts
in Western Kenya are increasingly erratic. This has resulted in drought and in some
areas, including where Kenya BDS operates floods as rainfall patterns know as “short
rains” have intensified. The drought and related floods affect both subsistence
agriculture and fishing, since the runoff from the floods pushes fish and breeding
groups deeper into Lake Victoria. The areas where Kenya BDS operates did not
directly flood in 2006, but Mbita the capital of Suba District was affected and fish
prices across the district jumped up as a result of the 2006 flooding.

1.2.2. Describe government policies aimed at the very poor

1.2.2.1. Social protection schemes by the government.
These can include basic healthcare and/or health insurance, pension schemes,
assistance to people with disabilities, the elderly…
1.2.2.2. Policies aimed to integrate the very poor, such as anti-discrimination and
affirmative action laws.

In Kenya’s Poverty Reduction Stratetgy Paper, authored in 2005 the government

prioritizes universal primary education, improved access to basic health,
expanded productive capacity in agriculture, development of the
hitherto overlooked arid and semi-arid areas, and upgrading the living
conditions for urban dwellers that have suffered from poor urban
infrastructure and social services mainly due to high urbanization rates.

There are no laws which are particularly relevant to the groups targeted by Kenya
BDS.

1.2.2.3. Property and land rights.

Are these the same for women and disadvantaged social classes? Is there an
inheritance law that provides same rights to women and children? Is the law
effective?

In the Nyanza province, traditional laws are still the main means by which land
inheritance questions are addressed. Per traditional law, the first wife inherits the land
upon her husband’s passing, as well as his children and other wives. She is then
recognized as the head of the household and makes all land decisions. Women per
Luo tradition can also own land. However, increasingly there is evidence in light of

5
 the HIV/AIDS epidemic that these practices are not regularly followed and there are
many cases of women losing their land—presumably the same is true for children.
This issue is particularly relevant to the areas served by Kenya BDS since they have
the highest HIV/AIDS prevalence rates in Kenya. There are domestic NGOs in Kenya
and the Nyanza province working on this issue.

1.2.2.4. Local government and non-governmental development programs.

Within the geographical target area, what type of development programs are run by
local governments? Which are the main international and local NGO players and
what type of activities do they support?

There are multiple domestic and international NGOs operating in the district and the
province offering family planning and HIV/AIDS-related assistance. Voluntary
Counseling and Testing sites (VCTs) for HIV/AIDS are also abundant.

The government also runs some small scale programs for agriculture, but little in the
way of fishing, the industry in which Kenya BDA works.

1.2.2.5. Other

1.2.3. Brief profile of microfinance environment.

See section 3.2.3.1. for the relevant information for this section as it relates to Kenya
BDS.

1.2.3.1. List microfinance institutions (other than subject of case study) and other
financial institutions/services accessible by the poor.
Provide number of clients, if possible.

1.2.3.2. Describe dominant microfinance models and services.

Examples are individual or group loans (such as solidarity lending, self-help group
lending and village banking), savings (voluntary/mandatory). Traditional (informal)
microfinance models can also be listed if they are common.

1.2.3.3. Demand versus supply of microfinance services.

What indications exist on demand for financial services? How many clients are
currently reached by microfinance and/or financial institutions in general?

1.2.3.4. Depth of microfinance outreach.

How poor are the majority of microfinance customers? To what extent are very poor
people reached?

1.2.3.5. Existing MF/MED initiatives (other than case study) aimed at the very poor.

Outside of the limited outreach of microfinance and other financial services to Suba
district discussed in section 3.2.3.1, there are few small scale livelihoods activities
aimed at the poor in Suba. Care International worked with farmers groups on

6
 Rusinga island to introduce irrigation technology and has larger scale agriculture
projects in other parts of the Nyanza Province as does World Vision. The
International Medical Corps also operates in Suba and provides some assistance in the
form of cash or in-kind grants for livelihoods for groups affected by HIV/AIDS.
Kenya BDS is the only group working with the fishing industry and particularly the
omena value chain in the Suba District.

1.2.4. Poverty2
1.2.4.1. Existing Poverty data and geographic areas of the country where extreme
poverty is most concentrated.
Include both urban and rural areas where extreme poverty dominates most. Include
map and/or table with available poverty data (from national census, World Bank or
UN surveys, participatory poverty assessments, etc.)

See Attachment 1: for the World Bank’s 2003 Poverty Mapping of the Nyanza
Province, in which the Suba District is located.3

Per the poverty mapping, Nyanza Province contributes the third largest number of
very poor people to Kenya’s total. Similar to the Western Province, which is the
poorest province in Kenya, between 60% to 70% of the population (headcount index)
in the vast majority of the districts in Nyanza Province live below the national poverty
line.

1.2.4.2. Does the target area fall within these extreme poor regions?
To what extent does the MFO target these regions? Show on same map or table, if
possible. What factors has MFO considered to decide on its geographical target
area? What are plans for future in terms of geographic expansion?

The design for the omena value chain program balances poverty targeting with
economic potential and the promise of scale in terms of the numbers of very poor
women it could work with. This enables the program to target the very poor
effectively by integrating them into a profitable industry and providing significant
increases in their incomes. It also allows for greater expansion of the program, since

2
The poverty data presented in this case study is based upon the report: Central Bureau of Statistics:
Ministry of Planning and Urban Development. Geographic Dimensions of Well-Being in Kenya.: Where
are the Poor? From Districts to Locations. Vol 1. 2003. The poverty mapping used the 1997 welfare
monitoring survey and the 1999 population and housing census and developed poverty estimates based for
1999. As the most recent national level poverty assessment available, this is the information which was
used in government planning and policy to date, and is relevant to the Kenya BDS which started its
programs in the omena value chain in 2004. In April 2007 the Central Bureau of Statistics published a new
nationwide poverty assessment: The Kenyan Integrated Household Budget Survey based on information
gathered in 2005 and 2006. This report shows significant progress in Kenyans progression out of poverty,
with an over 10% reduction in the percentage of Kenyans living below the poverty line nationally. The
report indicates that Nyanza Province particularly made impressive progress as among the rural provinces it
now has an absolute poverty incidence of 47.7%. The poverty incidence for other rural provinces is as
follows: North Eastern (73.9%), Coast (69.7%), Western (52.2%), Eastern (51%), Rift Valley (49%), and
Central (30.4%). The poverty incidence in Nairobi is 21.3 per cent, the lowest in the country.
3
Ibid. Geographic Dimensions of Well-Being in Kenya: Where are the Poor? From Districts to Locations.

7
by partnering with the private sector the program operates with few subsidies, while
reaching larger numbers of the very poor through private investment.

Suba district was of interest given that it is one of the poorest districts in Kenya.
Equally important was the role that the district plays in Kenya’s profitable fishing
industry. The district supplies 25% of the total fishing catch for Lake Victoria and is
the largest source of fish for Kenya, pumping over 3.5 billion KES annually into the
Kenyan economy. Fishing provides 10,000 direct jobs in Suba district and another
20,000 indirectly. The main fish harvested from Lake Victoria are nile perch, tilapia
and omena, otherwise known as minnow.

The omen value chain was ultimately choose for the program, since it would enable
very poor women working at a near subsistence level drying and selling omena to
upgrade to commercial production. Another important factor in choosing to work in
the omena value chain was the presence of the firm Promisdor, which offered the
women affordable financing and a guaranteed market for their product if they would
agree to meet its quality and delivery standards. This lowered the risk for the women
to upgrade their production while providing them with the needed investments. It also
ensured the sustainability and expansion of the program since it is driven by the
business relationship between the women and Promisdor.

1.2.4.3. If known, what is the proportion of population in the target area living below
$1-a-day and/or within bottom 50% of people living below the national poverty line?
How does this compare to the country overall and to its poorest regions? Include map
or table, if available.

See the answer to 1.2.4.1

1.2.4.4. Main determinants of poverty.

Which factors are strongly indicative of level of poverty within target area or country
as a whole? Examples include: household size, gender and/or age of head of
household, amount of land or animals owned, education level, remoteness…

The government in developing its poverty baseline uses food and non-food
expenditure (schooling, health, transportation and rent) s at the household level, which
also accounts for regional price differences. The government also more broadly tracks
a number of social indicators to determine a households or a province economic well-
being including: life expectancy, school enrolment, household incomes, access to
health care and banking services, postal services, security and electricity.

8
2. Organizational Framework
2.1. International Organization
2.1.1. Name and type of the organization (INGO, multilateral agency, foundation, other)

2.1.2. Organizational background

2.1.2.1. Mission and vision
The Kenya Business Development Services Program (Kenya BDS) is a 6-year micro-
and small-enterprise (MSE) development program funded by the United States
Agency for International Development (USAID) and managed by the Emerging
Markets Group. The objective of Kenya BDS is to increase growth and incomes
among rural MSEs through: 1) access to markets; and 2) access to commercial skills
and resources to compete in those markets. The program achieves these goals by
working in subsectors of high growth potential for microenterprises. The program
uses value chain and subsector analysis to identify critical market inefficiencies along
the value chain, which it then seeks to address. The objective is to build the
competitiveness of the targeted value chain through interventions that increase its
efficiency and better meet the demands of final markets.

2.1.2.2. Brief history

Kenya BDS initiated field operations in January 2003. Tree Fruits was identified as
the first subsector for assistance, with a focus on the avocado, passion, and mango
fruit value chains. Based upon the geographical locations of the fruit, activities are
targeted in the Central, Eastern, and Coastal Provinces of Kenya. The program
works with a range of businesses (MSEs and large) to promote commercial services
and solutions that will increase the competitiveness of the tree fruits value chains,
while ensuring that micro and small firms contribute to and benefit from their
participation in these value chains. Service promoted by the program to strengthen
the industry’s productivity, include access to commercial material inputs, crop
husbandry and extension; “farming as a business” skills development; business
linkages;, cluster development; bulking; branding of Kenyan products for both
domestic and export markets; and embedded service facilitation between lead firms
and MSE producers. Based on its success in tree fruits, Kenya BDS is now
replicating the methodology in other subsectors, including the omena value chain
which is the focus of this case study. The initiative in the omena value chain was
started in June 2005.

2.1.2.3. Type of support: funding, capacity building, technical assistance, direct

service provider, other
In order to promote the scale and sustainability of its interventions, Kenya BDS rarely
intervenes in markets directly, instead seeking to work with businesses to identify and
promote commercial solutions. To identify appropriate solutions, the program
conducts a value chain analysis to identify market inefficiencies along the value-chain
and particularly the constraints for MSEs to contribute to and benefit from their
participation in the chain. As critical constraints are identified, the program designs
interventions to address them through commercial solutions developed in conjunction

9
 with the private sector. In the Omena value chain the following types of support are
provided:
 Technical assistance designing and delivering training in group formation and
management including managing revenues, expenditures and financing
 Market linkages for both sales and inputs (products and services used in
production) for both MSEs and large firms
 Linkages to financial services including financing and savings
 Grants, known as a market invention fund in Kenya BDS, which seek to stimulate
commercial services and relationships (e.g. subcontracting, financing, technical
assistance and training, mentorship)

2.1.3. Development intervention approach

2.1.3.1. Primary target group and development focus
Who is the international organization’s main target population (category of people:
the poor, women, elderly, children, people with disabilities, refugees, etc.; geographic
coverage: rural/urban, regions of the world). What is the international organization’s
primary development focus? Health, education, agriculture, human rights, economic
development, microfinance…)

Emerging Markets Group (EMG) is an integrated development consulting firm that

provides services to international donor agencies and sovereign governments. EMG
offers solutions in financial services, private sector development, agribusiness, trade,
infrastructure, health care, sustainable tourism and public sector reform.

2.1.3.2. Specialized in MF/MED or multisectoral

Does the international organization employ an exclusive MF/MED approach or does
it provide non-financial services as well?

For the Kenya BDS program, an exclusive MF/MED approach is used, with Kenya
BDS facilitating microenterprises commerical access to market linkages, products and
services that enable them to sell into higher value markets.

2.1.3.3. MF/MED model

Without providing details (to be provided in later section) explain the main features of
the MF/MED model: which service (credit, savings, insurance, enterprise
development, etc.), individual or group basis, name (for example: solidarity lending,
village banking, self-help groups, credit union, coope ratives…)

Kenya BDS uses the value chain framework to design and implement its program.
Within the framework, the interventions used are determined by the value chain
analysis and program design process which ranks the most critical constraints and
opportunities in the value chain. Potential interventions to address these constraints
and to leverage these opportunities vary depending on the results of the analysis, but
may include all or some of the following:
 access to commercial material inputs, services and technical assistance;
 access to commercial financing and savings services;

10
  business skills development; group or cluster development,
 collection and marketing (branding and certification for domestic and
international markets);
 embedded service* facilitation between lead firms and microenterprise
producers including financing;
 advocacy to national and local government.

*The term embedded services is used to indicate products or services that a firm
provides to a MSE in which the costs of provision are included in the final transaction.
In the Omena Value Chain, Promasidor provides the women with extension services
and recovers the costs for the services via the price it pays for the women for dried
fish. Embedded services are often used when working with poor and very poor
microenterprises, since it makes the services more accessible to microenterprises since
they do not have to pay for the services upfront, but rather when they are paid.

2.1.3.4. Other sectors

None

11
 2.2. Local organization

Promasidor, a private firm.

2.2.1. Organizational development (S)

Table 2.2. Institutional Background

Issues Observations
2.2.1.1. Name of the organization or institution Promasidor
Operates across several
countries in Africa, both
producing and marketing its
2.2.1.2. Geographic area of operation food products which include
dairy, beverages & food
enhancers (flavoring,
sauces, etc.)
Ltd. with headquarters in
2.2.1.3. Legal structure
South Africa
2.2.1.4. Registration status NA
2.2.1.5. Regulation status NA
2.2.1.6. Date established 1979
Private firm, which sources
product from
2.2.1.7. Specialized (MF/MED) or multisectoral
microenterprises among
others
2.2.1.8. Start of MF/MED activities NA
2.2.1.9. Core business (f.i. credit, savings, …) NA
2.2.1.10. Business model NA
2.2.1.11. Target market – MF/MED NA
2.2.1.12. Number of clients/participants – MF/MED NA
2.2.1.13. Number of staff Not available
NA as non-applicable.

2.2.2. Organizational development (S)

2.2.2.1. Mission and vision
Promasidor’s vision is as follows:

• Quality
Our customers demand and deserve quality products. We must fulfill our promise
to provide products and service of consistently high quality.
• Values
We need to demonstrate the highest standards of corporate governance and
corporate and social responsibility throughout the Group. We have clear
obligations to consumers, suppliers, our employees and to the communities in
which we operate. These obligations are respect, integrity and openness.

12
• Profitability
We will sell products where we can be profitable. If circumstances within the
operating environment limit the potential to generate profits, the company cannot
invest, grow, motivate, develop and reward our people and stakeholders.

2.2.2.2. Brief history

Promasidor was founded in 1979 by Robert Rose, who left the United Kingdom in
1957 to move to Zimbabwe. While Chairman of Allied Lyons Africa for over 20
years, he travelled extensively across Africa and gained a unique and thorough
knowledge of the food industry throughout the continent. In particular he noticed a
lack of availability of milk. He realized that with technology in the manufacture of
milk powders advancing rapidly, there was an opportunity to provide milk powder in
small portions that could be packaged in flexible sachets. It was found that removing
the animal fat from the milk and replacing it with vegetable fat allowed for a longer
shelf life. This meant that for the first time, milk powder could be distributed across
the vast African continent, providing access to affordable milk to everyone in Africa.
Today Promasidor’s Cowbell milk powder is the number one selling milk powder in
small sachets in Africa and Promasidor has diversified into other dairy products,
beverages and food flavoring products.

In its research on the fish sector and the Omena value chain, Kenya BDS discovered
that the company had recently embarked on a venture in Kenya to source Omena. In
its research, Kenya BDS uncovered that Promasidor had difficulties sourcing the
quantity of grade one omena it required, so Kenya BDS then approached the company
to partner and develop the women fish dryers as a source.

2.2.2.3. Objectives

See 2.2.2.1

2.2.2.4. Organizational culture, leadership, innovation (S, M)

How strong is vision and mission among staff? How motivated and loyal are staffs to
the organization? Is leadership top-down or bottom-up? Is innovation encouraged?
How? To what extent contribute any of these to reaching very poor people with
appropriate services?

Promasidor as a private company is committed to profitability through the provision of

high quality products to its consumers. The company got its start in a product targeted
at the poor and very poor (individual servings of powdered milk) and in this respect
seems to take a bottom of the pyramid approach in serving this group when it sees
profitable opportunities in African markets.

The company also notes as part of its mission that it is committed to operating
responsibly with a commitment to good corporate governance.

13
2.2.2.5. Organizational structure, roles and responsibilities (diagram may be helpful)
Is the organization centralized or decentralized?
Describe main divisions of the organization.

The firm is decentralized with a high level of autonomy at the level of its in-country
production facilities in different parts of Africa.

2.2.2.6. General qualifications and profile of field staff (S, M)

What is job title of typical field staff (with direct client contact)? What is job
description? What are educational and work experience requirements for field staff?
Is prior experience working with very poor people required? What is gender, ethnic,
linguistic and socio-economic background (compared to clients)?

Within Promasidor, there are two groups that interact primarily with the women fish
dryers: the Field Extension Officers and the local management. Prior to Promasidor’s
partnership with Kenya BDS, staff bought from the women or middle men directly.
However they could never be ensured of supply or the quality and post-catch handling
of the fish. Under the new initiative with Kenya BDS, Promasidor agreed to buy from
the women groups with whom the FEOs were working, since these groups would
provide fish per Promasidor’s specifications.

Job Description for Field Extension Officers which Promadisor hired to work with the
women:
-Organize and manage relations with groups
-Conduct disbursements and collections for buyers’ credit and drying rack credit
-Collect catch at the beach checking for grade
-Work with field staff on post-catching handling and storage

The field extension officers are hired from Suba district and therefore have the same
ethnic backgrounds at the women; however they have higher levels of education and
literacy in order to manage the client and their own accounts. There are two male
FEOs and one woman.

Job Description for Local Management who oversee the FEOs and the program
-Manage the overall sourcing from the women, including:
-Administering the buyers and drying rack credits
-Manage the FEOs
-Ensuring final fish purchases meet Promasidor’s grade requirements
-Storage of the dried fish
-Determining when to expand buying agreements based upon Promasidor’s
demand

2.2.2.7. Training/sensitization (of staff, managers, board) on mission and poverty

outreach (S, M)
How are staff trained and sensitized with respect to reaching very poor people?
Is training mandatory? Who receives training? Board? Management? Field Staff?

14
How was the training developed and who are the trainers? Is there follow-up
training?

The Field Extension Officers (FEO) were trained by a contractor* hired by Kenya
BDS in how to work with the women to form and operate groups (group formation,
leadership, bookkeeping and loan management) as well as the technical aspects of
drying fish per the quality standards required by Promisador. The training materials
and training of trainers for the FEOs was based upon a training manual that Kenya
BDS had used successfully in working with Kenyan Tree Fruit Farmers.

In the initial program training was not provided to Promasidor’s local management in
how to manage the newly hired FEOs and administering the loan program. In the
second phase starting in the Summer of 2007 these identified training needs are being
addressed.

Additionally the FEOs are receiving additional training and support in how to work
with the women and disbursements and collections of credit.

*Kenya BDS was not happy with the performance of the first and second local
contractors it attempted to outsource some of the program implementation to. The
contractors did not perform in terms of training and mentoring the women and the
FEOs, developing a strong relationship between Promadisor and the women, nor in
providing the systems needed for Promadisor to manage the finance portion of the
program. Given this Kenya BDS has now hired on staff to undertake these activities.

2.2.2.8. Incentives for poverty outreach (S, M)

What are monetary incentives to reach/serve very poor clients?
What non-monetary incentives exist?
Is there tension between financial and social job performance? How is this tension
mitigated?

The incentives for Promasidor and its staff to work with the women are primarily
economic. They required a quality, stable supply of fish and would prefer to source
the dried fish locally rather than purchasing and drying the fish themselves. Given this
Promasidor, is willing to make the investments needed to work with the women.

At the level of local management, there is still some resistance to the overall program
as they are not convinced that the program will result in the promised outcomes,
particularly in delivering the needed tonnage.

At the firm level, Promasidor may have also been willing to invest in the program and
dedicate staff time to it given its social impacts in increasing the incomes of very poor
women fish dryers. However they would have not engaged initially if there was not
an economic benefit as well.

2.2.2.9. Governance

15
 How is the organization governed? Who sits on the Board? What are the main
responsibilities of the Board? If applicable, who are the main shareholders of the
organization? Is the organization transparent about its goals and performance with
staff, donors, and clients?

Information on Promasidor’s governance structure and Board was not available. The
firm notes in its mission statement that it is committed to “the highest standards of
corporate governance and corporate and social responsibility throughout the Group.
We have clear obligations to consumers, suppliers, our employees and to the
communities in which we operate. These obligations are respect, integrity and
openness.”

2.2.3. MF and MED services

This section is meant to provide a brief overview of MF and MED services overall, not
just those targeted at very poor people. If the organization provides customized
services/products targeted to very poor people and/or if it targets very poor people
exclusively, then these will be described in Section 5.
2.2.3.1. MF model and products/services.
For loans, include range of products, average and minimum/maximum loan size,
savings requirement, and typical loan terms (interest rate and method, loan duration)
…
For deposit services, include average savings, savings collection mechanism,
withdrawal policies…

Promisdor the lead firm participating in the program offers two forms of financing to
women’s groups:
No-interest loans for the materials to construct fish drying racks
The women are charged at cost for wire mesh, nets, transport and skilled labour to
construct the racks. They then repay the loan gradually over one to two seasons, with
a portion of the loan subtracted from the sales price each time they sell dried fish to
Promisdor.
Loan size range between 1,100 KES to 3,100 KES per rack, with an average size of
2,170 KES

No interest loans for working capital to purchase fresh fish

Individual women in the groups were initially offered no interest loans of up to 3,000
KES with which to buy fresh fish. The loans was to be repaid within seven days
through deductions from their sales to Promisdor, when the company’s agents pick up
the dried fish. Future loans are provided on an as-needed basis with the same terms.

Savings Accounts
A requirement of participation in the program is that all groups have a registered
group savings account with a local bank or microfinance institution. Kenya BDS links
those groups not already holding an account with the Co-Bank of Kenya, which has a
branch in the Homa Bay district. Kenya BDS is not involved in setting the terms for
the savings accounts.

16
 2.2.3.2. Description of main target group (if not the very poor).
What is the total number of clients, by service (loans/savings), if known? What is
poverty level, gender, social status, professional activities and business types,
ethnicity, etc. of most clients?

As of June 2007 the program is working with 642 women in 27 groups.

2.2.3.3. Selection and/or eligibility criteria

What are selection criteria? What method is used to verify eligibility?

There is no selection or eligibility criteria. Women self-select and agree to form a

group and to register the group with the Ministry of Culture and Social Services.

2.2.3.4. Use of poverty assessment tool

Is poverty of general clients assessed? By what method?

Not directly. Women self-select for participation in the program. However, the program
operates in one of the poorest regions in Kenya and prior to the Kenya BDS intervention
most of these women operated at subsistence level.

A poverty baseline was conducted by Kenya BDS but is not available at this time.

2.2.4. Resources and external assistance

Brief overview of the organization’s balance sheet. What is the value of total assets and
how are these covered by external loans, equity, donor grants, client savings?
Who are the principal donors, lenders, equity holders?
Does the organization generate income? How much? What are the financial efficiency
and operational efficiency ratios? Portfolio at risk?

Not available for Promasidor.

2.2.5. Relationships (networks, partnerships, other institutions)

2.2.5.1. Networks
What networks (local, national, and international) does the local organization belong
to? What is the role of the network? Does the network provide any value for the local
organization in reaching and engaging the very poor?

Not applicable to Promasidor in Kenya, although in other parts of Africa where

Promasidor operates social or community programs the firm has engaged in
partnerships with other private sector actors to fund and operate these programs.

2.2.5.2. Partnerships
Has the local or international organization established any partnerships with private
sector, other non-profits, government or multilateral agency to better serve the needs
of its very poor target group? What is the rationale for any such partnerships? What

17
type of services or other value do the partner(s) provide? What type of funding does
the partner organization(s) have access to? How is the partnership set up? How
strong is the partnership? If the partner requires subsidies for its operations, how
reliable are these subsidies?

For the Omena project, Kenya BDS partnered with the private firm Promisdor.
Promisdor was planning to enter into the export market for dried Omena (minnow) in
Malawi and needed a secure, high quality supply. Kenya BDS entered into the
partnership, since it allowed the program to provide women fish dryers with a link to a
stable, high value, guaranteed market for their fish. The partnership also enabled
Kenya BDS to base the program on commercial terms, since by partnering with
Promidsor, it allowed Kenya BDS to provide the women with the needed technical
assistance and commercial financing to upgrade their production sufficiently to sell
into the higher value export market.

Kenya BDS worked with a local firm contracted by the program to identify women for
the program. The women were trained in the financial and business management
skills they would need to professionalize their operations, as well as in how to process
the fish to the grade required by Promisdor. The women were trained by agents who
were initially trained by the local firm and paid by Kenya BDS. After three months,
the agents were transferred to Promisdor’s permanent payroll. One year into the
project the local firm still has one full time staffer that works with the Promisdor
agents and the women. The plan is to phase out this staffer in year two and to
graduate all work with the women to the Promisdor agents.

As discussed in this section and previous, Promisdor provides the women with a
guaranteed market and price. Promisdor also provides the women with market
information and training in terms of the size and quality of fish it desires and how to
dry the fish to meet these standards. Promisdor assists the women to upgrade and
increase their total production through interest free loans for drying racks and working
capital to purchase fresh fish for processing.

To date and as will be discussed more in later sectors the program has had mixed
results with the women providing up to 50% monthly of the quantities which
Promisdor requires. There have also been some challenges in loan repayments by the
women and in developing quality agents for Promisdor. It is also not evident that
midevel management in Promisdor completely support the program. Despite these
challenges both Kenya BDS and Promisdor’s senior management and owners remain
committed to the program and will continue to collaborate in its second year.
Promisdor also remains committeed to providing interest free loans to the women and
paying the agents’ salaries with no ongoing subsidies from Kenya BDS.

Figure 1 below provides the contractural terms agreed to by Promisdor and by the
women self help groups.

18
Figure 1: Terms of the Supply Contract Between Promisdor
and the SHGs

Contractual Terms Agreed Upon by the Buyer

Promisdor
1. A guaranteed price of 2,250 Kshs per 50 kilogram sack of at
maximum of 8% moisture content Omena
2. On the beaches where the self help groups operate Promisdor will
only buy from them at set collection points, based upon a mutually
agreed upon schedule..
3. To take delivery of Omena and to pay the seller immediately if the
Promasidor designated field agent is satisfied. Fish not meeting the
quality standard will be rejected.
4. To put one free Omena drying rack measuring 6 feet by 40 feet on
the beach for the Seller’s use. The Buyer further offers to provide
additional required Omena drying racks at cost, financed by an interest
free loan repayable in 10 equal monthly instalments through deductions
by the Buyer when paying the Seller the sales proceeds. Should the
Seller prefer to construct their own drying rack technology, they may do
so at the approval of the Buyer.
5. To offer the Seller an interest free loan to enable the purchase of
Omena fish from the fishermen. This loan/credit will be repaid in full
within seven (7) days through deductions from Omena sales proceeds.
On full repayment of the loan by the Seller, the Buyer will advance
subsequent loans to the Seller on a needed basis and on the same terms.
If women are unable to provide the quantity of omena agreed they will
refund the balance of the money not used.
6. To supply sacks, weighing scales in kilograms and transport of
Omena from the island/beach to the market at no cost to the Seller. (The
Seller will be responsible for any lost or damage to scales or sacks, which
remain the property of the Buyer at all times.
7. To purchase a preset total tons of Omena per month and per
season, as long as it meets the quality requirements.
8. To meet regularly with other key stakeholders to review the
performance under this Supplier Contract with a view to effecting any
desirable changes for the achievement of the overall Omena Market
Linkage Project.
9. To provide technical training and advice on the quality and
standard required in the processing of the Omena for sale to the Buyer
under the Supplier Contract herein.

Contractual Terms Agreed Upon by the Seller Self

Help Groups
1. To provide the Buyer with Omena fish per the quality standards
specified by the Buyer in this Supplier Contract. To repay all loans
advanced by the Buyer under this Supplier Contract on timely basis and
in full as per the terms and conditions of such facilities. The company
consulted to oversee the project will provide required supervision and
financial management, recording and reporting on the loans advanced to
the Seller by the Buyer, through loans and savings passbook for each
individual woman Omena trader in the SHG.
2.2.5.3. Other institutions

19
 Do other (private, non-profit, public) institutions address the needs of very poor
people in the same area? Which ones? What services do they provide? Do they reach
(some of) the same target groups? Is there any coordination between the local
organization and other (non-partner) organizations when serving very poor people?

There are no organizations of particular relevance that interact with the target group (e.g.
the women fish dryers) and have an impact therefore on the program or the target group.

3. Description of “Very Poor” Target Group

Focus to the extent possible on statistics for the “very poor” group only. If these data
don’t exist, clarify for each category whether the data is for overall client group or for
very poor clients only. If client data are not available for certain categories, available
national data can be used.

3.1. Individual and Household conditions

3.1.1. Gender

100% women

3.1.2. Age

Not available—although the women are not homogenous in their age

3.1.3. Disability and chronic disease

Suba District has the highest prevalence of HIV/AIDS in Kenya at 35%. The area is also
endemic for malaria.

3.1.4. Culture or religion

The majority of Luo and Suba, which are the two main ethnic groups engaged in fishing
are Christians.

3.1.5. Ethnicity

The women working with the program are primarily Luo or Suba, reflecting the ethnic
makeup of the region. However not all the women are from Suba district with some
immigrating/migrating to the area from Seme, Imbo and Uyoma in search of work.

3.1.6. Membership to socioeconomic groups, such as caste and class

Not applicable

3.1.7. Household type, composition, marital status

20
Not available

3.1.8. Literacy
If clients are mixed gender, provide by gender if known.

Not available, but it is know that there are mixed levels in the groups. Each group needs
at least one to two members who are numerate to help the group manage its finances.

3.1.9. Education
If clients are mixed gender, provide by gender if known.

Not available, but it is know that there are mixed levels of education in the groups.

3.2. Socioeconomic conditions

3.2.1. Refugee or IDP status

Not applicable

3.2.2. Economic conditions (F, C)

3.2.2.1. Underemployment
For those who rely on working for others (laborers, etc.), how many days on average
can they find work?

Not relevant. All the women are self-employed.

3.2.2.2. Income Sources

What are the main income and/or subsistence sources of very poor clients?

For the women, fish is their primary resource both for income and subsistence. Many
of the women and/or their families are also engaged in subsistence farming.

3.2.2.3. Land ownership

Do very poor clients own land or lease land? If so, how much on average? To which
degree does own cultivation meet annual household subsistence needs?

Many of the women’s groups lease land for the racks where they dry the fish.

3.2.2.4. Asset ownership

What are typical assets (productive and/or household) owned by very poor people?

Not available

3.2.2.5. Income level

Provide daily wage levels for labor (male/female) if available. Are data available on
household income derived from microenterprise activities?

21
 Not available

3.2.3. Geographic conditions

3.2.3.1. Rural/urban, remoteness from trading centers and roads, population density

The Kenya BDS program serves rural island communities. Rusinga Island can be
reached by a causeway linked to Mbtia Point the most urban area in the district;
however the roads to Mbtia are poor and often unaccessible during the rainy season
due to flooding. Relative to other districts in the Province Mbita is more of a small
town than a city and offers few services.. Mfangano island is reached by boat or air.
From both islands it takes approximately 1.5 days to travel to urban areas and back,
including the Homa Bay district which borders Suba district and is the location of the
nearest bank and government health center.

The GOK has commenced construction of a ring road on Mfangano Island.

Discussions are underway for a commercial ferry to connect passengers from Mbita to
Mfangano upon completion of the road, which would decrease the travel time to Mbita
significantly.

3.2.3.1. Access to markets

Mbita Point is the commercial hub of Suba District, where general trade and
commerce takes place. The area is quite isolated with an urban population of
approximately 6,000.. From Mbita point a 45 minute ferry ride combined with a 2
hour drive on pot-hole infested muddy roads will take you to Kisumu. Alternatively
road transport may be taken through Homa Bay to Kisumu town which takes 4 hours.
Both of these routes are often unaccessible during the rainy season.

3.2.3.1. Access to banks

There are no commercial banks operating in the Suba District. The nearest formal
bank is Coop-Bank located in Homa Bay, approximately 100km away. It takes the
women in the SHGs up to a day and half to travel round trip to the bank. .

At present, the only common saving technique for the women and other local
fisherfolk is merry-go-rounds, through which each members saves a little to a weekly
common pool. A survey by Osienala, a Kenyan national NGO, indicates that 73% of
the fishermen in the region keep their earnings in their houses while 9% keep their
savings with their associations.

There are over 10 SACCOs and similar institutions operating in the region, but they
are very weak given the poor capacity within the local fishermen’s cooperatives.
Additionally they have no formal bank with which to link and to deposit their
members savings in.

The SACCO’s and other financial institutions operating in the district are:

22
 Post Office Sena
 Post Office Mbita
 Mfangano West Cooperative Society (MWEFCO)
 CCF Village Bank
 Osienala Beach Beank in Gwasi
 Mbita FSA
 Magunga FSA
 Rusinga Fishermen Sacco
 Mfangano West Sacco
 Mfangano North Sacco
 Kihumba Beach Sacco
 Suba Traders Sacco
 SUD Sacco
 CARE-COSAMO
 Lake Land Sacco
 FAIDI Kenya
 Kinda Traders Sacco
 Sindo Traders Sacco
 Sasa Kenya

3.2.3.1. Access to doctors and clinics

Donor-sponsored voluntary testing centers for HIV/AIDs are common. The nearest
government clinic is in the next district in Homa Bay.

3.2.3.1. Proneness to natural disasters

Only to be completed in the rare case where the very poor target group experiences
different natural calamities from the rest of the population, because the live in distinct
areas where they are more prone to drought, flooding, etc.
Not applicable

3.2.4. Major vulnerabilities and risks encountered by target group (F, C)

What are most common vulnerabilities experienced by the very poor? How do they cope
with them traditionally (before becoming clients)?

Many of the women fish dryers are migrants, coming from nearby districts during the
eight months of the year when fishing of omena is allowed on Lake Victoria. During the
four months of the year when fishing is banned on the lake they return home and do
manual or farm labor for income. During the fishing season, the women have few
sources of diversified income, since traditional methods for drying fish are very labor
intensive leaving little time for other economic activities.

Lack of working capital makes the women very vulnerable. Many of the women fish
dryers as well as other women working in the sector report having to use personal
relationships and sexual favors with the local fishermen and traders to access fresh fish.
This attitude also makes them vulnerable since they are not seen as serious businesses,

23
making it difficult for them to grow their operations and increase their incomes, while
placing them at higher risk for HIV/AIDS which is endemic in Suba.

24
4. Poverty Targeting and Assessment
4.1. Poverty measurement practices
Kenya BDS did collect a baseline of its clients, which included several poverty related
indicators including number of members of the household and sources and percentages of
household incomes and expenditures. This information was collected prior to the
initiation of the project with women fish dryers as well as with individual women when
they enrolled into groups. Unfortunately this information is not available and has not
been used in program implementation, so this section cannot be filled out.

4.1.1. Poverty data collection

Are poverty-related indicators collected on clients?
4.1.1.1. Which poverty indicators are collected?
List poverty indicators collected. Are indicators universal or dependent on other
factors, such as regional differences or community feedback and participation?
4.1.1.2. What poverty assessment tool is used?
What is the name of the poverty tool?
Are the data collected through a standard survey? Interview and/or observation?
Through a participatory process. Other?
Include any relevant features of poverty tool.
4.1.1.3. When and how often are poverty data collected?
At “baseline”? Before or after admitting clients?
Any repeat measurements during program enrollment, group membership or
subsequent loan cycles?
4.1.1.4. Which clients are measured?
All incoming clients? Only a sample? Are non-clients measured too?

4.1.2. Use of poverty data

How are poverty data used by the organization?
4.1.2.1. What, if any, are poverty categories distinguished by poverty data?
For example, categories such as non-poor, middle-poor, poor, very poor…
4.1.2.2. How are each of these categories defined?
If poverty data are quantitative, do poverty categories fall within certain score
intervals? If so, explain.
Does the organization have qualitative definitions for certain poverty categories?
4.1.2.3. How are poverty data used by organization?
4.1.2.3.1. For client monitoring?
Explain procedure and decision factors.
4.1.2.3.2. For client screening?
Explain procedure and decision factors.
4.1.2.3.3. For client targeting?
More details to be provided under 4.3. Poverty Targeting
4.1.2.3.4. For impact monitoring/assessment?
Also used for product development?
4.1.2.3.5. For other uses?
Such as fundraising, PR,…

25
 4.2. Available Poverty Data
4.2.1. Poverty distribution results by internal poverty data collection method
(Assuming that the organization collects routine poverty data on clients, as would have
been described in 4.1.1.)
Provide results in terms of client proportions for each of the poverty categories defined
by the organization in 4.1.2.2.

4.2.2. Poverty data from a recent poverty and/or impact assessment study
If available, provide results in terms of client proportions by poverty categories as
defined in the study. Who performed the study? When? Which target area? How big was
the sample? Was the sample representative for the organization’s overall clientele?

4.2.3. Poverty Data obtained through use of USAID certified poverty tool
This will be conducted by external consultant trained in use of USAID certified poverty
tools, once these become available. These tools might not be available soon in certain
countries. (This section might need further development in future.)
4.2.3.1. Which USAID certified poverty tool was used? Which poverty criterion was
used: $1 a day or bottom 50% below poverty line?
4.2.3.2. Provide details on poverty assessment exercise: time conducted, sample size
and selection…
4.2.3.3. Poverty results: proportion of very poor clients versus poor clients.

4.2.4. Interpretation of Poverty data

4.2.4.1. Comparison between internal and USAID poverty tool data
4.2.4.2. Organization’s own interpretation of poverty outreach
Is poverty outreach satisfactory? Is poverty outreach higher or lower than expected?
What explains poverty outreach results?
Is organization planning to maintain or improve poverty outreach? Why? How?

4.3. Poverty Targeting

4.3.1. Does the organization use a poverty targeting tool?
Is the poverty assessment tool described above used as poverty targeting tool? What
other tools are used? (for instance geographic targeting, providing products or using
procedures that only attract very poor clients)

See section 1.2.4.2, which discussed the program’s targeting strategy and how poverty
was taken into account.

4.3.2. What is the client poverty target level?

Defined by one cut-off level? If so, which one?
Or are there different targets for different categories of poverty? Explain.

4.3.3. Staff use of poverty targeting (S, F)

4.3.3.1. Training/sensitization (of staff, managers, board) related to poverty outreach
How is staff trained in poverty targeting?

26
 4.3.3.2. Staff incentive schemes
What are monetary incentives for poverty targeting? Provide details on how poverty
targets are related to monetary incentives.
What non-monetary incentives exist?
What other job performance goals are staff held accountable for (other than poverty
outreach)?

Field Extension Officers are paid based on their performance in terms of the number of
tons of fish they collect from the women.

4.3.4. Issues with poverty targeting (S,F)

If organization is using a poverty targeting tool, what issues has it encountered by using
the tool?

27
5. Products and Services
This section explores the various products and services offered to very poor clients.
However, since certain organizations do not just target very poor clients and since
products/services are not necessarily different for very poor clients than for less poor
clients, make sure to clarify whether products/services are specifically targeted towards
very poor clients, or whether they are on offer for a wider range of clients. On the other
hand, if the organization provides customized products/services/assistance to very poor
clients, it might be helpful to briefly compare with what less poor clients are being
offered.

How are the poorest integrated in the MFI's mainstream services? Do the
same credit officers serve the poor and the poorest? Are the poorest
integrated into regular MF groups? Or are different staff members serving
the most vulnerable exclusively, and once they graduate from pre-MF they
are then integrated into the mainstream? In the outline, if the poverty
initiative is separated from the mainstream services, it would be useful to
make that distinction throughout the data collection process (e.g. #regular
vs. poverty staff, differences in job requirements, etc).

5.1. Financial Products

Table 5.1. Microfinance Product Details
Product Features and Policies
5.1.1. microcredit
5.1.1.1. Individual or group product
5.1.1.2. Loan terms (maturity, interest
rate, interest type, flexibility)
5.1.1.3. Loan source
5.1.1.4. Loan use
5.1.1.5. Loan size (first loan, average
loan, maximum loan size)
5.1.1.6. Meeting requirement and
frequency
5.1.1.7. Mandatory savings requirement
and amount
5.1.1.8. Collateral requirement
5.1.1.9. Other eligibility requirements
5.1.1.10. Loan default policy
5.1.1.11. Repayment flexibility
5.1.1.12. Other
5.1.2. microsavings
5.1.2.1. Individual or group
5.1.2.2. Savings Type
5.1.2.3. Deposit/collection location
5.1.2.4. Deposit frequency, amounts,
flexibility
5.1.2.5. Meeting requirement and
frequency

28
 Product Features and Policies
5.1.2.6. Savings terms (interest rate,
minimum deposit, …)
5.1.2.7. Withdrawal and savings use
policies
5.1.2.8. Record keeping and accounting
5.1.2.9. Investment of deposits
5.1.2.10. Other
5.1.3. microinsurance
5.1.3.1. Microinsurance Type
5.1.3.2. Group or individual product
5.1.3.3. Term
5.1.3.4. Eligibility requirements
5.1.3.5. Renewal requirements
5.1.3.6. Rejection rate
5.1.3.7. Voluntary or compulsory
5.1.3.8. Product coverage (benefits)
5.1.3.9. Key exclusions
5.1.3.10. Pricing – premiums
5.1.3.11. Pricing – co-payments and
deductibles
5.1.3.12. Pricing – other fees
5.1.4. microgrants
5.1.4.1. Individual or group product
5.1.4.2. Amount (and number of grants)
5.1.4.3. Eligibility requirements
5.1.4.4. Grant use and other conditions
5.1.4.5. Savings requirement or matched
savings arrangement
5.1.4.6. Straight grant, no interest or
partial repayment
5.1.4.7. Other

Provide any further narrative and details relating to microfinance products that were not
captured in the table above.

Neither Kenya BDS nor its partners operate as financial institutions. Rather the lead firm
participating in the program, Promisdor offers embedded financing to the women, which
they pay off in kind through dried fish. The terms of this financing are documented in
section 2.2.3.

The requirement that all groups have a registered group savings account with a local bank
or microfinance institution is an important component of the program. The training in
business management and planning for the women emphasizes cash flow management,
and the importance of saving profits during the times of the year when the women’s

29
earnings are greater than their daily needs. This then provides the women with a reserve
that they can access during slower times of the year when there is little to no fresh fish
available for sale. This reserve can be used to meet basic needs or to diversify into other
microenterprises such as small livestock or trade. The training attempts to encourage
diversification by encouraging the women to explore during group meetings how they
may want to use their savings.

5.2. Microenterprise Development Services

Table 5.2. MED Service Details
Service Types and Features
5.2.1. Training
5.2.1.1. Financial literacy
The local firm, EMC to which Kenya BDS
outsourced program management, worked
5.2.1.2. Business planning and with Kenya BDS to develop a manual and
management deliver training in group formation and
business management. This training is now
being transferred to Promisdor’s agents.
5.2.1.3. Marketing See marketing assistance in market linkages
5.2.1.4. Recordkeeping and Women are training in record keeping at the
bookkeeping group and individual levels
5.2.1.5. Skill development
5.2.1.6. Technical assistance See other, technology development
5.2.1.7. Training method
5.2.1.8. Other?
Costs are carried by Promisdor, as a means of
5.2.1.9. Costs to client
securing its supply of high quality dried fish
5.2.2. Business Consultancy and Advisory Services
Groups meet regularly to discuss their
business with EMC and/or the agents
5.2.2.1. Individual or group sessions attending to keep motivation high and to
work with the women to solve issues that
may come up
5.2.2.2. Frequency
5.2.2.3. Topics
5.2.2.4. Confidence Building Yes—via the group meetings
5.2.2.5. Other
Costs are carried by Promisdor, as a means of
5.2.2.6. Costs to client
securing its supply of high quality dried fish
5.2.3. Market Linkages
Promisdor supplies inputs and the technology
to construct the fish drying racks via no
5.2.3.1. Input supply
interest loans paid in kind by the women with
dried fish.

30
 Service Types and Features
Kenya BDA linked the women to the exporter
5.2.3.2. Marketing Assistance Promisdor. The firm offers a guaranteed
market and price for the fish.
5.2.3.3. Market Information
5.2.3.4. Producer organizations
5.2.3.5. Business linkage promotion
Promisdor and its agents control for the
quality of fish bought from the women, and
5.2.3.6. Quality Control
provide them assistance initially in how to
clean and dry the fish to ensure high quality.
5.2.3.7. Other
5.2.3.8. Costs to client
5.2.4. Other
5.2.4.1. Employment generation
Introduction of fish drying racks by
5.2.4.2. Technology development Promisdor, which dry the fish faster and with
less labor, while achieving a better result.

Provide any further narrative and details relating to microenterprise development

services that were not captured in the table above.

At the launch of the program, Kenya BDS held meetings with all the stakeholders in the
fishing industry to build their awareness of the program, and the emerging commercial
supply relationship between Promisdor and the women. This helped to build the
women’s credibility as serious businesses rather than subsistence fish dryers. It also
helped to build local authorities and community organizations such as the beach
management units’ support for the program.4

Kenya BDS has also been active in advocacy for both the lead firm Promisdor and the
women. In obtaining all the proper permits and documentation required to export fish,
Promisdor had some difficulties, given overly strict compliance requirements required by
the Fisheries Department Health Inspectorate. Additionally, there were delays in
processing Promisdor’s documentation due to elections in the country and the entry of
new ministry staff who were not familiar with the firm. Kenya BDS met with the
ministry on behalf of Promisdor and helped to establish a relationship between the new

4
Beach Management Units (BMU)are community-based organizations present at all designated landing
sites. Each BMU committee is made up of five to nine individuals, about half of whom are elected by the
local fishing community while the rest are nominated. BMUs are independent of government but they lack
legal authority. They are maintained through a levy of 1 Kshs/kg imposed on all the landed fish catch. They
tend to be highly accountable to their communities and therefore effective. The functions of the BMUs
include resolving conflict, punishing offenders, convening community meetings, establishing beach
hygiene and sanitation facilities, providing security on the beach and in the fishing ground, receiving
visitors, registering beach members, facilitating search and rescue, and the establishment and maintenance
of beach infrastructure. Since members of these units come from the community, it can be easily
recognized when the BMU’s have failed to deliver according to the community’s expectations.

31
fisheries ministry leadership and the firm. This helped to expedite Promisdor’s
application to export fish.

Kenya BDS also hosted a visit of the new fisheries director to the Suba district. This also
strengthened Promisdor’s relationship with the Ministry and brought to the Director’s
attention the hardship that the annual four month fishing ban places on local fisherfolk.
As a result in 2006 the Ministry commuted the ban to two months from four.

5.3. Non-financial Services

In the table below, list services under each of the non-financial categories that are
offered to the very poor clients of the organization. Mention whether the organization
itself provides these services or a partner organization (such as NGO, government, etc.)

Table 5.3. Non-financial Services Details

Service Types and Features
5.3.1. Nutrition

5.3.2. Health and Sanitation

5.3.3. Education

5.3.4. Social Capital Development

5.3.5. Other

- Financial education: perhaps we should ask specifically about HH budgeting and

financial planning. Essentially there are three ways of tackling poverty from a cash flow

32
perspective: 1) increase incomes, 2) provide prevention of and protection against the
costs associated with risks (i.e. reduce the likelihood that a risk occurs and reduce the
impact if it does occur), and 3) make existing income go farther through better cash flow
management (and reduction of unnecessary expenditures). So ideally, interventions
targeting the poorest would address all three of these areas. Usually organizations focus
on the first, with perhaps a little bit of attention to the second, but unfortunately very
little consideration for the third.

Provide any further narrative and details relating to non-financial services that were not
captured in the table above.

5.3.6. Empowerment and confidence building

What type of activities and programs help build confidence of clients?
To what extent are clients involved in decision related to product and service design,
loan terms and use, loan approval, etc. To what extent do clients have more negotiating
power in financial and business transactions?
Which challenges remain?

In discussing what they like most about the program, the women highlight the financial
independence it allows. Many of the women report that selling to Promisdor has enabled
them to pay school fees on time and to eat well. Importantly they also noted that they no
longer have to depend on others for their upkeep as they now can fend for themselves.
Many of the women noted that they are finding ways to free themselves of the practice of
Jaboya, or special friendship in which they have to grant sexual favors to fishermen or
traders to buy fish and access capital. One group of women intends to use the 36,000
KESs they have saved to purchase their own boat, so that they are completely free of this
practice. The women also note that they appreciate the unity the program has established
among them and their increased financial knowledge.

Relationships with Promisdor and its agents are still developing. Most of the women
have visited Promisdor’s facilities and interact regularly with the company’s agents.
However, when it comes to negotiating the terms of future contracts or to expressing
concerns, the women still rely heavily on Kenya BDS. This is likely a reflection of the
nascent status of the women’s groups and that they are still in the process of
professionalizing their operations and their outlook. The women are currently are not
organized in such a way that they can speak as one voice in negotiations with the firm.
This may never be practical within the Kenya BDS program timeline and currently there
is no plan to help the women’s groups to come together in a larger federated structure. In
the second year of the program, Kenya BDS will be working to further strengthen the
direct relationships between the individual women’s groups and Promisdor and its agents,
as well as strengthening the capacity of the firm to more actively manage these
relationships. The intent is to develop strong lines of communication and trust between
the women and Promisdor and its agents. This should also strengthen the women’s
ability to give feedback to the firm as needed.

5.3.7. Graduation of very poor clients into mainstream MF/MED services

What type of activities and programs help build confidence of clients?

33
- Timeline, cost, process and success rate: For organizations that seek to graduate the
most vulnerable into the mainstream services, the results should try to asses how
long the pre-MF phase lasts and how much does it cost to move someone out of the
poorest category (what is the per capita subsidy required), and what is the success
rate: what percentage of the graduates stay in the mainstream services?
- How does this graduation process occur? i.e., Does food aid stop overnight or is it
phased out? Are graduates put into existing mainstream groups or just graduate
groups? Details like that would be very interesting.

Kenya BDS approach is to not move gradually, but to assist women to migrate
immediately into a higher value market in which they sell directly to a commercial
exporter. The women receive no direct subsidies to make this migration, rather they are
shown a good business opportunity and if they opt in, then Promisdor provides them with
the financing they need upfront to increase and improve upon the quality of their
production. Within some groups, members have been asked to leave or have left
voluntarily if they are not meeting their group obligations.

The discussion here of “graduation” does not fit the Kenya BDS program context. The
clients do not graduate between different levels of assistance or services. Additionally, a
woman opting to no longer engage in a commercial relationship with Promasidor is not
necessarily an indicator of drop out rates. Some women may opt to discontinue the
relationship, since they have saved sufficiently to move into an even higher value level of
enterprise or into another function within the same value chan.

5.4. Design and Product Development:

5.4.1. Program rationale/ theory of change?
How are the program’s services and products (and other outputs) envisioned to create
changes?
5.4.1.1. Main issues and challenges of very poor clients which the organization seeks
to address
What did the organization learn about client behavior that led to the services and
products aimed at very poor people?

Generally the greatest risks for microenterprises to upgrade their production are the
costs involved, and many therefore opt not to upgrade because they do not have
enough assurances or personal comfort that greater income streams will result. This
risk aversion is further heightened when a client is very poor and has little leeway to
take business risks. Promisdor’s willingness to finance the upgrading at cost lessened
this risk for the women, as did the guaranteed market it offered for the product.
Clustering the women into groups also lessened the risks, since they could share the
costs of upgrading together, while providing one another with mutual support.

Kenya BDS is also trying to work with the women to enable them to have more
options during the period of the annual four month fishing ban through savings.

5.4.1.2. Intended outcomes and impacts

34
 What are the intended (short-term) outcomes at client, household, microenterprise
and community level? What types of impact are expected in the long term?

At the client level, the short term outcome is to immediately increase the women’s
incomes and confidence. It also enables them to move out of the practice of fish for
sex or Jaboya, offering them more autonomy from the fishermen, while running less
of a risk of being exposed to HIV/AIDS. In the long run, if the women choose to
continue actively saving and growing their businesses they will have more assets and
therefore more choices. They can choose if they wish to stay in fish and grow the
business, perhaps diversifying into other functions such as fishing or marketing.
Alternatively they will also have the option to move into another business.

5.4.1.3. How are products and inputs designed to achieve those intended impacts?

The direct linkage into a higher value, stable market produces an immediate increase
in their incomes. The introduction of long term, stable savings mechanisms such as a
linkage with a bank provides them with the option to save for longer term goals.

5.4.2. Concept development

5.4.2.1. Client Survey Demand/Needs assessment
Did the organization conduct client surveys, needs assessment or other research
related to issues faced by very poor people? (if not specifically by very poor people,
was any such research conducted on poor clients in general?) What types of tools
were used? What were the main findings?

To design the program Kenya BDS conducted an analysis of the fish subsector,
focusing specifically on the omena, nile perch and tilapia value chains. Omena was
chosen as one of the value chains to focus on, since it employed large numbers of
poor, women-owned microenterprises, whose owners were very vulnerable given their
operations were at little more than a subsistence level. Importantly in addition to
offering the opportunity to work with a very poor and vulnerable group, the omena
value chain showed commercial promise and the opportunity for women to achieve
significant increases in income if they were willing to upgrade. The presence of a lead
firm Promisdor was another important element, since the firm could act as a financial
and technical champion for the project. Promisdor’s steady market and willingness to
finance the women upfront acted as the catalyst to quickly get the program off the
ground, all based on a commercial opportunities for Promisdor and the women.

The methodology for working with the women via business trainings, group
formation, rural-based agents and required savings came from Kenya BDS’a ongoing
work in the tree fruit subsector. These methodologies were very successful with small
farmers working in this industry, so the model was then brought to the Omena value
chain.

5.4.2.2. Competition analysis

35
 Has the organization analyzed its competitors? If so, how has this affected its niche in
terms of products/services and costs especially with a focus on very poor clients?
Are other organizations working with same type of clients? What is their approach?

Prior to this program, surprisingly very few of the women had worked with other
programs. Therefore from an implementer’s perspective there was little competition
for their attention—and importantly fewer distortions in the form of subsidized
livelihoods or other activities that would have made it difficult to engage with the
women on a commercial basis. From a business perspective, greater analysis could
have been done of the alternative markets that women had for their dried fish. Many
of the women working with Promisdor, often opt not to sell their fish to the firm when
the market price is higher than the fixed price that Promisdor offers. In the first year
of the project this resulted in Promisdor purchasing less fish from the women than it
needed.

5.4.2.3. Self-assessment
Does the organization conduct self-assessments? If so, how are they conducted? Who
is involved? What have been lessons learned from such exercises?

Kenya BDS uses both international and domestic experts to review the performance of
its programs in different subsectors. For example, for the Omena project the program
recently hired a local consultant to review the program’s progress and to determine
areas where the program could be strengthened and improved upon in the coming
year. This is currently the slow season for the project, since the four month fishing
ban is in place.

See section 5.4.3.2 for the lessons learned and some of the adaptations being made.

5.4.3. Product/Service design

5.4.3.1. Product/service design process
Explain how the organization decided to provide products/services to very poor
clients, how these were designed?

It is the mission of the program as defined by its donor USAID to work with poor
microenterprises and to enable them to upgrade their production so as to engage in and
contribute to the growth of high potential value chains in Kenya. Geographic
targeting was used as a means of reaching very poor women-operated microenteprises
in the Omena value chain.

5.4.3.2. New versus modified products/services for very poor clients

Was a new product/service specifically tailored to the needs of very poor clients or
was an existing product/service tweaked to meet their needs? What were the cost
trade-offs?

The interventions with the women in the Omena value chain are based on the
successful methodology that Kenya BDS piloted in its work with microenterprises in

36
the tree fruit sector. Initially when the program started there were relatively few
adaptations made to the methodology.

However, the program has had to adapt and is currently working on additional
adaptations. The greatest adaptations will be to the record keeping systems of the
women and Promisdor in managing the embedded financing for drying racks and
working capital to purchase fish. A lack of controls in the first year, lead to rural
agents either pocketing or inconsistently documenting loan pay offs from the women.
It was also found that the women’s own records of their financial dealings with
Promisdor and their group and individual financial records were poorly kept. The
resulting cash mismanagement started in the three months before the agents were
handed out to Promisdor and it was Promisdor’s management who then identified the
problems. This may have also resulted in a lack of support for the program by some
of Promisdor’s senior staff. Kenya BDS has since hired an outside consultant with a
strong background in microlending to work with Promisdor and the women on the
controls and record keeping needed for the system to work.

One service that has not been tweaked is the savings product. Originally the plan was
for Promisdor to pay the women for the fish purchased directly through their group
bank and savings accounts. This would have considerably lessened the need for
agents to handle cash and lessened the control risks. It would also have encouraged
the women to manage their money better, since it would be deposited in a bank
initially rather than received as cash in hand. The hope was that it would also
encourage the women to save more easily and readily. However, given the nearest
bank requires a day and a half travel for the women to visit, direct deposits of
payments into the bank has proven impractical. The treasurer in each women’s group
holds onto the groups savings until there is sufficient cash to merit a trip to the bank.

Rather than subsidizing products and services, Kenya BDS works to stimulate private
sector interest and investments. The program is actively talking with several Kenya
banks and providing them with information as to the market opportunity to open a
branch in the Suba district and/or to offer mobile banking services on the district
beaches for the women and other local enterprises. To date no bank has made such an
investment. The trade off of Kenya BDS not offering a financial incentive or grant to
start up such a service, may be that as a result women are saving less and there have
been greater control problems in the program then may have other wise occurred.
However, Kenya BDS is secure in the knowledge that its interventions are not
distorting the market and are therefore sustainable, since Kenya BDS has not created
any potentially false or financially unsound incentives through subsidies for the
delivery of savings services.

5.4.3.2. Risk assessment and product design

What types of risks were identified for working with very poor clients? How did this
affect product/service design?

37
 Risks were not identified at the program’s inception, but have rather been discovered
as the program has gone on. The women tend to migrate at different parts of the
fishing season both to different beaches or back to the inland areas where their
families are. This is a risk for Promisdor, since there is greater difficulty in tracking
the women and therefore the funds that the firm may have outstanding with them. To
circumvent this risk Promisdor in the coming year will be working more intensively
with the women during the high season when there is lots of fish available near to
Promisdor’s operations. Promisdor will also help them to scale their operations while
also increasing the number of women’s groups it sources from. The intent is for
Promisdor to conclude its financial transactions with the women before they migrate
to other areas.

5.4.3.1. Prototype development and testing

How prototypes were eventually developed? Did the organization rely on internal or
expertise? Who was involved in development? What type of initial feedback was
solicited before pilot testing?

Kenya BDS did not conduct a pilot, but rather has pushed to roll out the program to as
many women as is practical for Promasidor’s supply and logistics needs. Over time
there have been adaptations based on the program’s progress.

5.4.4. Pilot testing

Which clients (and how many) were involved in pilot testing of new products/services for
very poor clients? What lessons were learned during pilot testing? What product
modifications were made?

The prior three sections discuss the modifications to the program and the services
Promasidor extends to the women fish dryers.

5.4.5. Rollout
How did the rollout of the new product go? Were any new issues encountered?
Modifications within the organization needed?

Not applicable

5.4.5. Product/Service review and assessment

How has the organization obtained feedback on its new services/products? Who is
involved in collecting this information?

Kenya BDS is working with Promasidor’s field staff to have an open dialogue with the
women, allowing Promasidor to trouble shoot any issues that arrive in the relationship
which is bound to evolve overtime. If the women feel that it is not in their interest to sell
to Promasidor they will ultimately choose to sell to other buyers.

5.4.6. The Product Development Cost

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 5.4.6.1. Total cost
Any information available on the total cost of developing a new product or service?

The total budget for developing the Omena value chain pilot is $125,000.

5.4.6.2. How were they funded?

Which financial resources make new product development possible?

Upon the exit of Kenya BDS from the program, the costs of evolving the relationship
will be taken on by Promasidor as part of their costs of doing business.

5.4.6.3. Outsourcing during the development process

Did organization outsource the product development process? If so, to whom? Why?

Kenya BDS in a way acted as the outsourcer, assisting Promasidor to strengthen its
field extension function so as to build supplier relationships with women fish dryers.

5.4.7. Feedback loop

What are the organization’s systems of information flow and feedback? What type of
essential client information is used to better understand their needs and ultimately
guide decision making for product development?

Not applicable

5.5. Implementation Process

5.5.1. Process
Provide a short step-by-step description of the process (and timeline) from targeting a
new area or group and selecting/recruiting clients to providing products/services and
potentially graduating very poor clients to new services.

Identification of potential value chains 2 to 3 months

Value Chain analysis & program design 1 to 2 months
Negotiations with the lead firm (here Promasidor) 1 month
Program start up 3 months
Adapting curriculum
Conducting baseline
Mobilizing & training women’s groups (Process took five months)
Training field agents
Program management 6 to 9 months
Tracking women’s performance
Tracking field agents performance
Liaising with Promasidor
Program adaptation if needed (may extend program up to six months through next
fishing season depending on the adaptations required)
Kenya BDS exits

39
5.5.2. Logistics
What are important logistical considerations in reaching and assisting very poor
people? Issues can include mobility/distance, selection, training,
monitoring/counseling, money transfer…

Adaptation of training for the non-literate

Need to work in very remote areas, requiring more staff time & travel expenditures
Lack of complimentary services (such as microfinance) may require new products be
developed or activities (e.g. embedded financing from Promasidor, women holding their
savings rather than direct deposit into a bank)
Lower levels of outreach (in terms of numbers of clients) since they are harder to reach
and fewer businesses for them to link into (in remote areas)

5.5.3. Information System

How are data obtained, processed, analyzed and used? Who keeps what type of
records (and in what form)? Details on type of data can be further explained in 6.1.1.

40
6. Results

6.1. Method of measuring results

6.1.1. Type of data
What information does management use to track results (effectiveness), performance
(efficiency), client feedback and impact?

Kenya BDS as a market development program tracks the following indicators across all
of the subsectors in which it works:

1. Total number of MSEs accessing commercial business services

2. Total number of commercial businesses providing relevant products or services in
the program target areas
3. Total number of MSEs aware of program assisted commercial business services
4. Total number of MSEs linked with the commercial market

Additionally for the Omena market linkage project the program tracks the following
indicators:

1. Gross margins for the women*

2. Status of loan repayments
3. Levels of group savings
4. Number of groups and women participating per group

The program also conducted a baseline survey of women as they entered the program,
profiling their socioeconomic status, sources of income and expenditure, etc. However to
date this information has not been used in tracking results or impact.

*Gross margins are calculated as follows: Kenya BDS used the projected average
tonnage that was delivered per group to the FEOs and then extrapolated for the program
period average gross margins for the groups based on the difference between revenue
earned at prevailing market prices per month (from the normal broker-dominated market
in which they would sell) and the price offered by Promasidor.

6.1.2. Data analysis and use

How are the data analyzed? How often? How are the data used for day-to-day
operations, for strategic planning?

The indicators listed above are collected monthly by a private firm, EMC, which Kenya
BDS subcontracted part of the program management to. The indicators are then used to
determine the program’s progress and when intervention is needed. As part of the
restructing of the embedded finance portion of the program additional revisions will be
made in data collection and its use to better track loan disbursements and repayments.

41
 6.2. Impact
Review of existing evidence on outcomes and impact. Compare with 5.4.1.2. Intended
Outcomes and Impact

At the client level, the short term outcome is to immediately increase the women’s
incomes and confidence. In the long run, if the women choose to continue actively
saving and growing their businesses they will have more assets and therefore more
choices. They can choose if they wish to stay in fish and grow the business, perhaps
diversifying into other functions such as fishing or marketing. Alternatively they will
also have the option to move into another business—perhaps even one where they do
not have to migrate so far from home each year.

6.2.1. Poverty Impact

Provide any evidence from internal monitoring or impact assessments as well as from
third-party impact studies related to the movement out of poverty of very poor clients,
both according to economic and non-economic poverty indicators. If impact data cannot
be disaggregated between poor and very poor, provide overall data and clearly identify
poverty range. If possible, also provide indications of how long clients have been in
program before impact is noted.

Results for the indicators tracked in the program as of June 2007 are as follows:

Indicators Achievements
1. Total number of MSEs accessing commercial
642
business services(1)
2. Total number of commercial businesses
providing relevant products or services in the 3
program target areas
3. Total number of MSEs aware of the program 3,000
4. Total number of MSEs linked with commercial
434
market –supply contracts
5. Number of tonnes of grade one omena sold
250
under the program
6. Gross Margin by women omena processors US$14,660 or 1,158,127
(KES.) KES
7. Income generated by Promasidor buying agents 171,800
8. Number of racks put up and paid for by the
247
women
9. Total savings banked by groups by the program US$3,671 or 290,000
(KES) KES
US$142,427 or
10. Value of omena sold under the program.(KES) 11,250,127 KES

(1) Here MSEs (micro and small enterprises) is the term used for the women fish dryers.

42
The program does not track when women or womens groups enter the program, so this
data is for all the women participating.

43
Other process indicators for the program as of June 2007 are as follows:
Status of loan repayments (in KESs)
Total disbursed No. of Total
Groups Outstanding
Drying US$6,274 or 495,673 20 US$5,094 or
Racks(1) KES for 247 racks 402,452 KES

(1) Cost of the racks includes wire mesh, nets, transport and skilled labour to construct.
(2) US$1,240 or 97983 KES of this amount is owed by the three Field Extension Officers
to Promasidor since this money has not been accounted for as being distributed to the
women and should therefore be subtracted from the total outstanding on the part of the
women

6.2.2. Client satisfaction and feedback

What have been client satisfaction levels with services provided? What suggestions are
made to change products/services?

As discussed in 5.3.6 most women report that they like participating in the program and
appreciate the financial independence it provides them. Additional suggestions they
make for the program and other assistance are as follows:

• Buyer credit increased to at least US$38 or 3000 KES per woman trader;
• Standard price of omena increased from US$0.57 (45 KES) per kg to US$1.27 or
(100 KES) per Kg;
• Training on other economic activities that they can rely on when the lake is
closed;
• Delivery of buyer credit and collection of omena on time to avoid weight loss;
• Assistance in paying land rent and stores rent;
• Provision of more racks and metal rods for building new racks as the wooden
ones deteriorate quickly;
• Field Extension Officers to visit them more regularly and discuss with them their
operations as opposed to weighing fish only;
• Bring a bank closer in Mbita so that they save on transportation costs they incur
while going to make savings in Homa Bay; and
• Provisions of funds to enable them buy boats, nets and lamps.

Provide three short client stories, including at least one that was not successful, on which
services were used, how they were used, and what the main impact was on the client, her
household income, etc.

See end of the document for client success stories

6.3. Cost Effectiveness and Sustainability

6.3.1. Scale and replicability
6.3.1.1. Strategy for scale?

44
 What is the organization’s strategy for increasing scale? How many very poor clients
does the organization want to reach (and when)? What is planned proportion of very
poor clients of total clients? What actions and resources are needed to achieve this?

The target for the partnership with Promasidor is 750 women. To further scale the
initiative, Kenya BDS can solicit other firms who may be interested in a similar
sourcing relationship.

Kenya BDS’s strategy for scale is best illustrated in the tree fruit sector in which the
program has been working with poor microenterprises since 2003. Tree fruits and
horticulture in general are the largest contributors to Kenya’s GDP in terms of exports,
whereas Omena contributes less than 0.3% to GDP. The market size of the tree fruit
value chains and the numbers of larger firms to which the microenterprises can be
linked for markets and technical assistance, enables Kenya BDS to work with tens of
thousands of farmers. The table below provides the total numbers of microenterprises
in tree fruits impacted by Kenya BDS.

Table A: Year Five Performance Monitoring Pla

As of Quarter 3 (April 1 – June 30, 2007)

Life of
Yr 4 Qt
SO7 PMP Indicators Activities Qtr 1 Qtr 2 Qtr 3 Project
Results r4
Targets
IR 7.3 Increased Access to Business Support Services for MSEs
Total number of MSEs
65,235
accessing commercial - 58,913 63,583 65,555 71,107 -
MSEs
business services
IR 7.3.3 Non Financial Services Delivered Cost-Effectively Increased
Total number of
Business Service Strengthening BDS
Providers participating provider capacity and 1,006 1,318 1,466 1,466 - 1,070 BSPs
in the BDS Program supply
target areas
Total number of MSEs
aware of program Awareness creation among 263,000
211,450 225,779 230,539 234,539 -
assisted business MSEs for business services MSEs
services
Total number of MSE Creation of commercial
22,250
producers linked with backward and forward 15,442 17,578 18,445 21,829 -
MSEs
the commercial market linkages

6.3.1.2. Replicability of program or service

How replicable is this program or service under other conditions (other parts of the
country, other countries, and other cultural/geographic/socioeconomic conditions?
What are essential factors for replication?

This model is very replicable—and its potential is only determined by the market size
of the industry in which the very poor microenterprises are linked. The Omena fish
program is a replication of the model that Kenya BDS first employed in Tree Fruits.
The value chain model has been used in many countries around the world to provide
services to tens and sometimes hundreds of thousands of microenteprises.

45
 The essential elements for replication, include:
 A sound value chain selection to ensure that a high growth value chain with
good potential for microenterprise participation is chosen
 A sound value chain analysis to diagnose to critical constraints to the
productivity of the value chain and greater involvement by microenterprises
 An understanding of the constraints for microenterprises to become more
involved in the chain, particularly in terms of the risks they would face and a
plan to mitigate sufficient risk to spur them to participate
 Flexibility in program design and funding so as to ensure that the program can
address the most critical constraints to the value chain

6.3.2. Financial and operational self-sufficiency (if applicable)

Provide information on following ratios, if applicable. Indicate whether ratios relate to
entire client population or to very poor clients only.
Explain if other measures are used (for non-credit programs especially).
6.3.2.1. Financial expense ratio
6.3.2.1. Operational expense ratio
6.3.2.1. Cost per client
6.3.2.1. Clients per staff member
6.3.2.1. Average loan balance per borrower
6.3.2.1. Average savings balance per saver
6.3.2.1. Portfolio at risk
6.3.2.1. Tailoring of product/service
If products/services were tailored specifically to the needs of very poor clients, how
did this affect cost and efficiency?

None of the above ratios are applicable to Kenya BDS. Instead the program tracks
Commercialization of program: Rate of operation (Field Level) /Cost recovery

Kenya BDS expects this ratio to be 100% upon its exit from a program in order to
ensure sustainability.

The cost per client is $195 based on the 642 women currently participating in the
program. The ratio may change in the coming season, based on the numbers of
women who join and/or drop out of the program.

The cost per client is calculated as total costs invested by Kenya BDS ($125,000)
divided by the total number of women clients (642). This ratio does not include any
costs for Promasidor; however compared to their prior expenditures these should be
minimal, since they now pay the FEOs the same levels of commissions they paid to
other buyers who supplied to the company. No staff has been added at the level of
management by Promasidor for this program.

6.3.2.1. Other?

6.3.3. Cost-effectiveness of non-financial services?

46
Distinguish different types of non-financial services and indicate cost and cost recovery.

Kenya BDS does not aim for cost recovery in terms of the upfront work it undertakes to
develop relationships between microenterprises and firms such as Promasidor, or the
development of the accompanying products or services (whose development but never
delivery may be subsidized). Rather these services as seen as a necessary cost to enable
microenterprises to enter into a new and much more profitable market than they had sold
into previously. Sustainability or graduation is defined when Kenya BDS withdraws and
there is no subsidy.

6.3.4. Strategies to cover/reduce costs?

Why measures were taken to reduce costs and to make products/services financially
sustainable. Examples are delivery mechanisms, technological innovation, scale, cross-
subsidization, private or public partnerships… Distinguish between financial and non-
financial services.
If no full cost recovery, what is the strategy for future sustainability?
As discussed in other sections Kenya BDS used groups to make it more cost effective to
work with the women.

The partnership with Promasidor is another important component in that the firm acted as
a catalyst to get the program up and running. It is Promasidor’s ongoing commercial
interests in sourcing fish from the women that will keep the program running in the
future.

Client Success Stories

Provide three short client stories, including at least one that was not successful, on which
services were used, how they were used, and what the main impact was on the client, her
household income, etc.

David—I went through all the docs and this is the only client success story I found. Do
you have two more—including at least one that was not successful?

Unyaga Omena Women’s Group

When the Kenya BDS Omena Linkages Program commenced in Suba District, Mauta
was not one of the beaches initially selected on Mfang’ano island. However, women
from Mauta beach had heard of the market linkage activity, and quickly sought out the
District Beach Management Unit (BMU) Chairman to enquire why the project did not
reach their area. Given the pro-active response of the women, Kenya BDS extended their
initial intake of 10 beaches to include Mauta Beach in December 2005. Following
training in group formation and post-catch handling, the Unyaga Omena Women’s Group
formally joined the program in January 2006. The group has proven its worth as a
business partner.

Initially the group consisted of twenty six members, however it later downsized (by the
members decision) to twenty women that were committed to work as a cohesive team.

47
The group quickly developed a set of rules and regulations for a well functioning group
and its members. For example, in addition to Omena processing all the women
committed to group savings. To date the members have saved US$316 or (25,000 KES)
in their group bank account at Homa Bay. This is in addition to US$139 or (11,000 KES)
which they had earlier used for the purchase of rack drying materials, brought the total
funds mobilized to US$456 or (36,000 KES). With the amount saved, the group is
planning to purchase a fishing boat and net to enable them to catch their own fish. This
would free them from the daily hassle every morning with the boat owners (Tajiri), who
quite often sell fish to the women on the basis of social friendship called Jaboya, where
the fishermen sell fish only to those women who are willing to have sexual relationships
with them.
Anastasia Ogolla is a typical member of the Unyaga Omena Women’s Group. Anastasia
is a widow and has three children in secondary school and one in college. Between
October and December 2006, Anastasia has been able to save enough to cover th 2007
first term school fees for her children. This is the first time school fees have been
affordable, allowing her to avoid asking for family loans as in the past.

She attributes her success to the group leaders who are well organised and committed to
the women’s activities, availability of credit facilities from the exporter Promasidor, low
operating costs, and a ready market. At the group level, Anastasia also singled out proper
record keeping and financial management as instrumental to their success.

MRONGO OMENA WOMEN GROUP

Mrongo beach lies to the north eastern side of Mfang’ano Island. When Kenya BDS
undertook outreach during the months of August and September 2005, the reception was
enthusiastic, and the first turn out of women quite encouraging. Fifty seven women
registered with the program, forming two groups. Unfortunately the two groups did not
last long. Kenya BDS quickly realized that many of the women joined expecting
handouts, and fifty one of women dropped out. However, the remaining six diligent
ladies soldiered on, and despite the small size of their group they have become one of the
most successful groups linked to Promasidor.

48
 Traditional drying system

In the month of October 2007, this group delivered 3,700 kg of fish to Promasidor, while
in November they supplied another 2,300 tonnes despite the challenges of rain and poor
weather. Other larger groups have been unable to meet this target. The women are now
an inspiration for other nascent groups and they have hosted and visited other nascent
groups to discuss their experiences and the new drying technology introduced by
Promasidor.

New omena drying technology

The secret of these six women’s success is their commitment to the work and the trust
that exists between the women. The group leadership is transparent in all its actions,
supported by a good record keeping system in which all expenditures and payments are
accounted for. Together the women have saved over US$380 or 30,000 KES in profits.
They report that the steady market and credit offered by Promasidor is greatly
appreciated and that as a result they are willing to consistently sell their product to the
company.

The women have also leveraged their success and savings to invest in developing their
own sources of fresh fish, rather than being dependent on the fisher men. Together the
women bought one boat, and three nets for fishing, while hiring two more boats. Many
of the women also report that their husbands are supportive of their work, now delivering

49
their fish directly to them for processing, rather than selling it on the open market. This
has enabled the women to further increase the quantities of dried fish sold to Promasidor.

Given the women’s success, some of the old members as well as other women have
formed a second group on the beach, and they are now in the process of setting up their
drying racks in anticipation of next season.

50