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Kenya's Slum Vendors Rely On Savings Groups to Survive COVID-19

Source: Devex

Starved of financial reserves to battle emergencies, Kenya's small traders are struggling to remain afloat as the economic meltdown induced by COVID-19 continues to stagnate businesses one year down the line.

The country’s economy was projected to contract by 1 to 1.5 percent in 2020, and research has found that the limited access to capital for micro, small, and medium enterprises further diminished during the pandemic, as the two sources of credit for MSMEs — financial institutions and suppliers — were affected. Faced with these challenges, a growing number of vendors in Kenya's slums turned to credit unions and savings groups, which could provide loans without collateral, to boost their businesses.