The Government has extended K-Rep Development Agency’s contract by another two years at no extra cost to enable the firm implement its rural financial services for Southern Nyanza Community Development project.
The Southern Nyanza Community Development Project (SNCDP) is a joint venture by the Government of Kenya and the International Fund for Agricultural Development (IFAD).
Dr. Edward Sambili, the Permanent Secretary in the Ministry of State for Planning, National Development and Vision 2030 said the decision to lengthen the contract was based on K-Rep’s impressive performance since 2007.
He noted that as per the contract of October 2007, the organization had established and institutionalized 15 Community Financial Service Associations (CFSAs) which were now operational at various stages of growth.
"We are confident that you are doing the right thing and trust that given much time you will even do more," said the PS.
Speaking at his office during the signing of contractual documents, Sambili urged K-Rep to invest heavily in training programmes and focus on ownership and sustainability instead of short term goals in undertaking activities.
The PS also emphasized on the need for good leadership in mobilizing communities noting that this would enable a number of people to benefit economically if productive activities are targeted and implemented to increase their shareholding.
K-Rep Development Agency Managing Director Mr. Aleke Dondo pledged to work towards building the capacity of CFSAs board members to enable them provide the much needed stewardship in communities.
"We are also going to train clients for example on simple business management," he said.
On November 23, 2009, K-Rep Development Agency held a meeting with Ministry officials seeking to review their performance in order to achieve expected targets.
Subesequently, the firm did a letter for "No Cost Budget Extension request" on May 26, 2010 detailing the delayed achievement of physical targets and attendant impact on self sufficiency of the new CFSAs.
In total the contract that has led to the establishment of the 15 CFSAs in phases amounts to Sh 24.4 million and the money is used to mobilize, capacity build and establish CFSAs within the project area.
The first phase was in the old (larger) districts of Migori, Suba and Kuria while the second phase covered Nyamira, Homabay and Rachuonyo.
The CFSAs are; Masaba, Mabera and Kehancha in Kuria West District, Ntimaru and Keronga in Kuria East, Sori, Muhuru Bay in Nyatike District, Awendo in Rongo District, Oyeni in Uriri District, Sindo, Magunga and Ogongo in Suba, Ndhiwa in Ndhiwa District, Muungano in Rangwe (Homabay District) and Nyamusi in Nyamira North District.
Through the CFSAs at least 7,200 shareholders have been recruited and have managed to mobilize shares worth Sh 8.94 million, loans disbursed to the tune of Sh 33.7 million with gross savings of Sh 86 million by communities.
According to the signed agreement, K-Rep’s roles are; to assist in sensitizing and mobilizing community members, capacity building of CFSAs shareholders, board members and staff, strengthen the role of the shareholders in governance of the CFSAs, improve the quality of CFSA management and monitor and supervise CFSAs operations.
TheAfricanVoice Team
Nairobi
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