Operational procedures guide - Guisii rural farmers SACCO - Kenya

Publication proposée par Paul Henri Picot


The Participative Microfinance Development Project in Kenya (PMDP) is part of a larger programme whose objective is to contribute to the development of microfinance in East Africa (Ethiopia, Kenya and Tanzania) by the introduction of participative methods in the establishment and reinforcement of viable microfinance institutions in underserved rural areas of these countries. The project is financed by the French Ministry of Foreign Affairs (MAE, Ministère des Affaires Etrangères) and the Consultative Group to Assist the Poorest (CGAP).

The PMDP started in January 2003 with an opportunity study that identified Gusii Farmers Rural SACCO (GFRS) as a promising partner for developing credit and savings services to the rural population in the Kisii region.

GFRS’s mission is consistent with the objectives of the project. It is to provide appropriate, flexible and efficient financial services on a sustainable basis, especially to tea and coffee farmers, but also to its other customers.

GFRS has proven its ability to innovate in product design and organisation by opening front-office services that also serve non-members. It is aiming at developing its activities in order to strengthen its sustainability.

GFRS was created in January 1976 as a Union banking section of the Kisii Farmers Union Ltd. It was supported by the Swedish, Swiss and Norwegian cooperation from 1976 to 1980, and benefited from a Swedish officer working half-time from 1980 to 1986. It was registered as a Sacco in 1992. Its objective was to serve small scale tea and coffee farmers. Its current area of operation covers 3 districts in the Nyanza province (2 branches in Kisii, 3 branches in Gucha and 3 branches in Nyamira).


These operational procedures will be put to test during the first months of operations of the Microfinance Department in the Ogembo Branch. They should be updated and specified according to the practical experience during these first months.

It presents the following procedures :

- Identification and selection of the groups
- Initial training of the groups
. module 1 : presentation of gfrs microfinance department
. module 2 : presentation of the financial products
. module 3 : presentation of the group lending methodology and associated transactions modalities
- Loan application, approval, disbursement, repayment, and recovery
- Members savings
- Continuous training of the members
- Follow-up of the groups
- Group diagnosis and loan renewal