A Visit To Ihemi SACCOS (IHESA)

We set out this morning at 8:20 AM heading for IHESA, the Ihemi SACCOS.  We were shooting for a 10:00 AM meeting – but, of course, first we had to have coffee with the Pastor and the officers of IHESA (coffee is ALWAYS first).  We finally got our meeting going about 10:45 or so.  The meeting was held in the Ihemi Lutheran Church because of the large turn-out.  After the chairman of IHESA gave some announcements and told the members the meeting agenda; Sandy, myself, and Pastor Brown (from the diocese) introduced ourselves (well, actually I gave a little talk – but what do you expect from a Professor).  Sandy’s remarks were very limited.  She introduced herself as the note-taker, but when she quoted the saying “behind every successful man is an exhausted woman”, all of the women in attendance began ululating and clapping.  They must have identified with the sentiment.    Then it was Itiweni’s turn.  She gave an excellent talk (in Swahili) about the members’ rights, responsibilities, etc.  She spent about 1.5 hours on this and during the whole time the members were taking notes, asking questions, and being very attentive.  We then adjourned to the SACCOS building and reviewed records, repayments, balances, etc.

IHESA is perhaps the most successful of the SACCOS in which we have been involved.  It currently has 108 members with another 20 waiting (they need to save their share purchase of $5 plus an initial savings deposit – about $10).  Their repayment rate over the past two years is 98.5% - with the two non performing loans being due to family illness.  In both cases the members of the SACCOS have decided to reschedule their loans, waive interest, and expect to be repaid. 

IHESA has been profitable as well.  Starting with a base of $14,750 they have increased their capital to $20,621 – a 40% increase.  This increase has been due largely to interest on loans to members with accumulated savings accounting for about 14%.

At the moment IHESA has 44 members who have applied for loans and cannot get them.  The total amount that they need is $13,350 – or about $300/loan. 

At the meeting we announced that we would like to interview 2 or 3 success stories in the SACCOS – definitely a mistake.  There were perhaps 20 to 30 people who wanted badly to tell us their stories.  In the end we went to the homes of 9 people – getting back to town about 7:30.  A long day!

I was touched by the many people who came to say thank-you for the changes the SACCOS has made in their lives.  In the first home we visited, a mother of two small children told us that since joining IHESA and taking out loans for two growing seasons, she and her husband have built a house and even installed electricity. 

Another home we visited was that of the chairman of the IHESA SACCOS.  After 4 rounds of loans at $400 each, he has increased his acreage from 8 to 12, and he has completed his new home, which was built in stages; after the first loan he was able to make the bricks, after the second he could lay the foundation of the house, after the third loan he bought the cement for the floors and walls, the metal sheeting for the roof, and the doors.  Following his 4^th loan he was able to buy a motorcycle, which is the sole means of transportation for the family.

One of our visits was to a small business run by a couple.  This couple told us that they did not have any land and had been trying to start a shop.  When they joined the SACCOS they were able to borrow $300.  With this money they started a shop, and with their profits have enlarged it, bought a home, are sending their children to school, and are saving money.  I had to pry my hand away from this couple as they kept telling me “You have changed our lives – God bless you!” 

Itiweni addressed the IHESA membership.  Of the 108 members 50 had shown up for the meeting (there were two funerals going on at the same time so many members were there).

The members listened carefully and took notes.

When we asked for two success stories a line formed of people wanting to share.

The Pastors and officials recorded a message in the CVP field asking for help in obtaining another $13,350 in capital for loans.

This woman told us that she and her children did not have a house before they joined IHESA.  They now have a good house - with electricity!!

The chairman and his wife shared their story with us.  They built a house, bought more land, and are sending their children and relatives to school!

On the way to the chairman's house - it is located about 15 kilometers off the road.

I had a hard time extracting my hand from this couple.  "You have changed our lives.  God bless you" they kept saying.