
Transforming Lives in the Biggest Slum in Africa
Located in Kenya, Kibera is the biggest slum in Africa, and one of the biggest in the world. Imagine 1.5 million people living in an area the size of Central Park. There are no roads, no sewer systems and few dreams. However, STEPUP (Skills Training and Entrepreneurship Program for the Urban Poor), a partnership between The MasterCard Foundation and Shining Hope for Communities, is offering opportunities and hope for many young men and women.
STEPUP started in 2014 and delivers a holistic program that offers skills training, mentoring, access to finance and support to transition to entrepreneurship or formal employment for youth living in slums in Kenya. A year later, this project has impacted many young slum dwellers’ lives, like Everline Adhiambo.
Everline tried to make a living selling water, but it was dangerous for a young woman to go out every night searching for water in Kibera, so she had to stop. She was looking for employment when a friend suggested making peanut butter and selling it. Everline would hand roast the peanuts, grind them and sell them. But she lacked the training to grow her business and customer base. Since joining the STEPUP program, Everline has been able to learn basic life and technical skills, as well as financial education skills such as differentiating profits and revenue, saving and money management.
“Being part of the STEPUP program meant that I could save more money and grow my business. However, I was still spending around 800 Kenyan Shillings (KSH) (US$8) per week to grind peanuts because I would rent machines from other people,” says Everline.
“If I really wanted to make my business more profitable and successful, I had to buy my own machine. I needed about 45,000KSH (US $443) to purchase one. I started to save in the ‘Group Savings and Loan’ (part of the STEPUP program), with 15 other youth that pool their money together and self-manage savings and lending based on transparency and flexibility”, she says. “Thanks to my good saving habits within our group, STEPUP supported me and linked me up with a financial institution that provided me with a loan to buy my machine. Since then, not only I had more products and sales, but also, people started renting my machine, and after only one year, I was able to pay back my loan in full, ’’
Since partnering with The MasterCard Foundation, Shining Hope for Communities has reached 5,000 youth through the STEPUP program. The repayment rate for this program remains at a commendable 98 percent. This can be attributed to the holistic support provided to youth participants, consisting of a combination of access to finance, life skills and business skills training. The youth are not only applying their new business skills, they are also developing new saving habits before, during and after their business activities. They are continuously seeking opportunities to reinvest, while also maintaining good financial records. In one year, STEPUP members have saved over 15,000,000KSH, or close to US $150,000.
As we’ve learned from Everline’s journey and the STEPUP program, developing responsible spending and saving habits, particularly for youth is critical to grow and maintain sustainable livelihoods. Saving is transformative, even in the harshest living conditions.
“I’ve really come far, and I’ve seen myself grow. I find it very important to encourage young entrepreneurs to keep their hope and drive, and continue to work hard for their businesses,” says Everline.
“You can’t create a new and better world in one day. It has to happen step by step. If you rush to do something all at once, you lose money and you lose opportunities. You have to think ahead, to plan well and map out your future instead of acting on impulse. This is what my journey has taught me.”