Finance and Equipment for Fishing Communities
Background
Lake Victoria has some of the richest fishing ground in Kenya, yet Suba district, which borders the lake in the far west of Kenya, remains one of the poorest districts in the country. More than two thirds of the population survive on less than Ksh 1239 (£9) per month. A lack of local, affordable fishing equipment means that only 10% of fisherfolk have access to capital in order to allow them to purchase their own gear. Fisherfolk are paid in cash and without access to formal banks, cannot save for schooling, healthcare or business needs. Traditionally, most of the money made from fishing finds its way out of the community and into the pockets of middlemen and large export companies.
The Suba district has also been home to the highest HIV prevalence rates in Kenya, further undermining economic and social well-being in the area.
Aim and objectives
This project aims to find ways to increase the economic benefits of fishing for the fisherfolk of Suba District, in order to provide a more stable income, and developing the means for the poorest families to save what they earn to build a better future for themselves.
With such high HIV prevalence rates in Suba, Africa Now also seeks to incorporate awareness raising activities into its project to compliment the overall objective of helping to improve livelihoods in the district.
Activities
- Increasing the incomes of fishing communities in Suba district to cater for their basic needs, such as education and medical fees.
- Improving access for fisherfolk to affordable fishing equipment in order to help them take control of their own fishing businesses.
- Enabling fisherfolk to improve the profitability of their fishing businesses through improved access to Village Banks, where they can save their earnings and access leasing schemes.
- Facilitating access to affordable ice distribution to keep fish fresher for longer, in turn allowing fisherfolk to get a better price.
- Strengthening the capacity of local fishing associations and cooperatives so that they can better represent their members and negotiate higher prices for their fish with buyers.
Anticipated results
- At least 4 strong fishing societies offering effective services to members and able to engage private buyers and local administration on behalf of members.
- At least 3,000 fisherfolk saving part of their income on a regular basis.
- At least 500 fisherfolk acquiring credit for fishing gear.
- At least 4,000 fisherfolk benefiting from ice availability at the landing beaches.
- At least 4 financial institutions offering financial services directly to fisherfolk.
- Significant reduction in use of illegal nets.
Latest update
- 4 financial institutions have now extended their services to the Suba district, enabling fisherfolk to access basic financial services. In turn, fisherfolk are now able to save their income to pay for schooling or medical emergencies, or even invest in their fishing businesses.
- Over 20,000 fisherfolk have been informed of the benefits of savings, with the number of fisherfolk now saving having risen to over 2,500.
- 420 fisherfolk have benefited from the hire purchase scheme for fishing equipment through 2 fishing cooperatives.
- 30 local fishing gear retailers now have business links with wholesalers in Kisumu and Homa Bay, facilitating access to affordable fishing equipment
- 34 representatives from 17 fishing associations have been trained on financial management, while 15 fisherfolk from 15 associations have completed training on organisational development and management.
- The fishing communities have now realized the benefit of collectively organising themselves through fishing associations and are now seeking ways to strengthen their associations and use them as business ventures to improve their livelihoods of their individual members.
Case Study: Reeling in a Real Income
Access to affordable fishing equipment is a big problem for the large majority of fisherfolk who do not have access to capital to purchase their own gear. Thanks to Africa Now's hire purchase scheme, retailers like Paul Odhiambo are able to supply affordable fishing equipment from his local shop on Yokia Beach.
When Paul first became involved with Africa Now in November 2004, he only had Ksh 28,000 (£200) worth of stock. Many of his customers were forced to travel for many hours to the nearest town to buy specific fishing equipment at much higher costs. Africa Now gave Paul a business development loan of Ksh 61,320 (£450) and his current stock has now grown to Ksh 180,000 (£1,300). The loan has also allowed Paul's wife to set up her own business running a tea kiosk in Kakiimba Village. All this hard working family needed was the opportunity to earn enough income to feed their family and start planning for the future.
