When faced with life’s challenges we sometimes think there is possibly no way we can recover. And for one of our clients, this was her story and she wasn’t quite sure she would make it to where she is today.
Purity is a 25-year-old lady who though quite young is a role model to other youths in her village. She is the third born in a family of six. She was passionate about pursuing her education but after completing her secondary education, she was unable to proceed due to financial constraints.
With a little income she got from the casual laborer job she had, she started a chicken selling business. Due to her resilience and determination, her business quickly grew in a short time. Unfortunately, as the business grew, numerous challenges grew with it and she soon discovered that she was making more losses than profits and that her business was slowly falling apart. She quickly decided to change her business before everything fell apart.
With some of her savings, she rented a tea farm in 2013. In the beginning, she faced numerous challenges but she was determined to make this one work. In 2015, Purity joined Muraga Vision Self Help Group where she found other individuals who were passionate about improving their lives and a good number were tea farmers. She was able to get advice from other members who were more experienced than she was and this improved her business greatly.
The group was registered with HopeCore as an Associate Group in 2015 and participated in a self-led, merry-go-round, savings scheme which helped demonstrate their commitment to HopeCore’s processes, build group cohesiveness, and allow members to gain business acumen. The group received training on table banking and business advice and mentorship throughout the associate period.
In April 2016, HopeCore funded her group with a normal loan and she received Ksh 60,000, (USD 600). After receiving this loan, she added her personal savings and decided to rent two tea farms that have 3500 tea bushes. This year she picked 6000 bags of tea from her tea farms. At the monthly rate of KES 14.5, she received a yearly income of KES 87,000 and a yearly bonus of KES 324,000 given that the bonus rate is 54. After a few months, her business venture grew. Her total expenditure is KES 72,000 yearly. Her total yearly profit will be 339,000. Her monthly profit will be KES 28,250. See below for the breakdown of how the above calculation is arrived at:
Her total yearly income will be 87,000 + 32,4000 = 411,000.
Her yearly expense: 60,000+12,000 = 72,000 (Fertilizer and tea picking labor)
Yearly profit: 411,000-72,000 = 339,000
Monthly Profit: 339,000/12 = 28,250
With this significant increase in her income, she is able to feed her family and helps her relatives too without a struggle.
Purity gained valuable knowledge and skills, such as how farming is a business and how to improve her farming. She also received health tips such as proper family planning, the importance of good hygiene, malaria prevention, and how to prevent HIV/AIDS. She thanks, HopeCore Organization for a good job. Her loan repayment stood at 100%.