KISUMU, Kenya, Jan 9 – AFRESA Sacco, operating in western Kenya, has launched a bold initiative to engage the informal sector, aiming to expand its customer base and bridge the financial gap within the segment.
AFRESA Sacco CEO, Dr. Berry Odhiambo, highlighted the sector’s vast potential, citing a global informal sector financing gap of approximately $15.7 trillion compared to $12.2 trillion covered by the formal sector.
“Across the world, the informal sector has significant unmet financial needs, and we aim to play a role in bridging this gap by carving out a market share,” Odhiambo said during an impact assessment forum in Kisumu.
Targeting Specific Clusters
Odhiambo revealed that the Sacco has developed tailored financial solutions for different informal sector clusters. For instance, the Sacco is supporting boda boda riders to own motorcycles by providing affordable financial services.
“Many boda boda riders hire their motorcycles, but through our partnership with various boda boda units, they can save with the Sacco and access low-interest loans to own their cycles,” Odhiambo explained.
The Sacco has also rolled out programs targeting mama mbogas (vegetable vendors) and mitumba (secondhand clothes) traders, offering them basic bookkeeping and management skills training every Thursday.
Empowering the Informal Sector
Over the years, the Sacco has emphasized financial literacy to address challenges such as cash security, record-keeping, and financial management within the informal sector. Odhiambo shared success stories, including traders who have expanded their businesses from small-scale vegetable stalls to owning mini-shops and employing workers.
“These testimonies are our strongest pillar. They showcase the impact of our services in job creation and improved sales revenue streams,” Odhiambo said.
Growth and Reach
In the past four years, AFRESA Sacco has registered 60,000 members, with a strong presence in Gusii, Kisumu, and Kakamega counties.
The Sacco’s commitment to empowering the informal sector continues to set it apart, focusing on both financial support and sustainable impact for its members.
