In rural Kenya, young agripreneurs are leveraging the transformative potential of local savings and loan models, supported by targeted training and guidance from dedicated officers. These efforts are strengthening the financial capacity of youth in agriculture through Village Savings and Loan Associations (VSLAs) and youth-focused Savings and Credit Cooperatives (SACCOs). 

Earlier in 2024, members of the KHYG cooperative received training on the benefits of VSLAs and were encouraged to join established youth SACCOs. These financial models provide a secure platform for collective savings and enable members to access small loans to grow their agri-businesses. The results of this training are already evident. Four cooperative members successfully secured small loans ranging from 2,000 Kenya shillings (16 USD) to 4,000 Kenya shillings (32 USD) through their VSLA groups. These funds were invested in seeds and fertilizers, helping the loanees capitalize on the ongoing short rainy season for crop production. 

For groups that adopted the VSLA model earlier, 2024 has been a year of financial growth. As they complete their loan cycles, many are now preparing to share the savings and interest they’ve accumulated. Some groups are set to distribute over 100,000 Kenya shillings (800 USD), showcasing the value of disciplined savings and collective effort. 

These initiatives promote savings, financial discipline, and collaboration, creating opportunities for youth to scale their agribusinesses, enhance their creditworthiness, and strengthen their communities’ economic resilience. The impact of such models underscores the importance of fostering financial inclusion and self-reliance in rural areas, where small investments can drive significant progress.