In order to purchase our products on credit we ask that our customers form a ‘savings group’ with people they know and trust.
Savings groups are prevalent in Kenya, with an estimated 11 million people participating. Groups provide members with a secure place to save small amounts of money. They allow for greater buying power through collective purchases or for low-interest, flexible lending from the group. Members are encouraged by and accountable to each other. Savings groups can also have social benefits such as increasing financial literacy, peer support and empowering women with better control over the household finances.
"The group is nice because we trust one another"
- Peter, "Ndulele Chini (self help group)", Rare, Kenya
The savings group model allows Angazia to provide credit, giving very poor households the opportunity to reap the benefits of a product while paying it off over time. Groups determine the length of their repayment term based on the instalment amount they choose - usually between 3 and 12 months. We enter into a written agreement with each group and provide the tools required (record book, pens, etc) for groups to manage individual repayments, which are made to Angazia as a group via mobile money. Sales agents visit the group each month to provide support and advice. Once repayments are complete, each customer is given an individual sales receipt to complete the transaction and acknowledge ownership (this is important to our customers).
"It makes us help each other when there are problems and to know each other's problems"
- Lenoard, "Kaptembwa" group, Majani Mingi, Kenya