“In my entire life, I was not able to raise the amount of money that could be used to put up such a project. But thanks to microfinance institutions which have the interests of women at heart, I have become an independent entrepreneur in my old age.” – Ruth Muriuki, greenhouse cultivator
While much of the world struggles with a widespread economic malaise, some women in Kenya have found their way to self-sufficiency and entrepreneurial success through microfinancing.
What is microfinancing?
Microfinancing describes the financial backing, usually in the form of loans and insurance, provided to unemployed and low income wage earners, who normally would not have access to such credit and indemnity services.
Why would a bank or similar business organization take that kind of risk? The answer has a great deal to do with venture strategy. If an undertaking is seen as being “socially responsible,” then the endeavor may be a good candidate for microfinancing.
Microfinancing in one form or another goes back several centuries. According to the PBS Frontline World website, “An early version of microlending was the Irish Loan Fund system, introduced in the early 1700s, by writer and nationalist Jonathan Swift.”
One woman’s achievement
At day break, Ruth Muriuki, 64, is already awake and tending to the agribusiness she owns and operates in Karimagachiije village, near Meru, Kenya. Lately the weather there has been drier than usual, a problem for most conventional farmers but not Muriuki. That’s because she uses greenhouse technology, made possible by microfinancing.
Inter Press Service (IPS) published an article, “Microloans, Greenhouses Help Women Cope with Climate Change” by Isaiah Esipisu, on March 23, 2012. In it, Muriuki explains how she beat locally arid conditions using the latest know-how:
“In my greenhouse, I use a drip irrigation system, where water is released through pipes strategically buried in the soil with an opening at the foot of every plant.”
This arrangement enables Muriuki to turn out one ton of produce every week from just an acre of land, something she could not do before the greenhouse.
How did she do it?
Greenhouses in Kenya cost upwards of $3,000 each. Ruth Muriuki knew the only way to successfully battle the elements in such a parched environment was with greenhouse technology, though she didn’t have the cash. What did Muriuki do? She turned to microfinancing, through the Kenya Women Finance Trust, an organization that has provided funding to almost half a million women in a variety of businesses.
As reported by IPS, “The Trust is dedicated specifically to empowering Kenyan girls and women through lending facilities. The loans are mostly given through self-help groups, where shares of the group members are used as security for loans borrowed by any of the members, because many poor women do not own property that they can use as collateral.”
Ruth Muriuki is proof positive that when properly administered, microfinancing can be a success. Before the next big government bailout, perhaps Wall Street executives should consult with Muriuki.