FSD Kenya has just published a short study of savings groups created under the Community Savings and Loans (COSALO I) project, funded by FSD Kenya and implemented by CARE International in Kenya. The survey was conducted in September 2011 among 54 groups representatively selected from about 2,500 groups.
Among the key findings was that replication was the norm, with the average group creating nearly two additional groups in the 14 months since the project ended. Three quarters of all groups had replicated.
The most important drivers of group creation in the sample were:
- Members of existing groups creating new groups,often by upgrading an existing ROSCA.
- Clusters of COSALO groups bringing new groups into their cluster.
- CBTs creating new groups on a fee-for-service basis.
Given that the number of groups far outweigh the number of CBTs, group- driven replication was by far the dominant mode of post-project group formation. For every group visited, more than 2 new groups had been formed by members. Although CBTs had also created new groups after the project ended, they were much less productive: in fact, they only created one new group for every 10 COSALO groups they had worked with during the project. The difference in productivity is enough to suggest the need to re-think the current SG model in relation to the post-project role of CBTs, in favor of appropriate tools for groups to drive the replication process through members as the primary channel of replication.
There is much much more in the full study, which can be downloaded here. I invite you to read it and I look forward to your comments!
Please check out other FSD Kenya publications on our website.