Financial Literacy Opportunities For Rural Agripreneurs

By Soko Directory Team / Published March 22, 2024 | 9:36 am



investor

In Kenya, entrepreneurs, particularly those engaged in agribusiness (agripreneurs), form the bedrock of rural economies. Indeed, at least 70% of rural Kenyans are employed in agricultural value chains, mostly as producers, but also in processing and marketing.

Yet even as important as agricultural enterprises remain to the country’s economy, they are majorly underfunded with many unable to secure loans from local financial institutions. Their struggles are worsened by a lack of financial literacy, hindering their ability to make their ventures appealing to investors.

Indeed, financially illiterate households face risks such as over-indebtedness and exploitation through borrowing. In this blog, we explore the opportunities for strengthening financial literacy among rural farming households, against research confirming that financial literacy training helps individuals understand risks, make informed decisions, and enhance their financial well-being.

Village savings associations

Encouraging farmers to join village savings associations is essential for bolstering their savings efforts. These associations play a key role in fostering a culture of financial responsibility among farmers. By joining these groups, farmers gain access to a supportive network that enables them to monitor each other’s progress closely.

This mutual accountability mechanism both promotes transparency and motivates members to strive for greater financial discipline. Moreover, village savings associations serve as a platform for farmers to share knowledge and best practices related to savings and investment as members exchange ideas on effective saving strategies. Faulu Bank has been heavily invested in training numerous village associations on record-keeping and banking strategies for accelerated creditworthiness. From these programs, many farmer groups have been reached with individual farmers gaining new money skills.

Local market days

In numerous rural regions across Kenya, market days serve as pivotal gatherings where individuals converge, not only to engage in commerce but also to socialize. These marketplaces present a prime setting for financial institutions to capitalize on community engagement and outreach efforts. By strategically leveraging these well-attended events, financial institutions can run activations aimed at spreading important financial literacy messaging while concurrently attracting prospective clients.

These activations, from our experience at Faulu, can facilitate meaningful conversations address common misconceptions or concerns regarding financial matters, and empower individuals to make informed financial decisions. On several occasions, Faulu Bank has set up activation programs in underserved regions, where populations have on local market days been educated on financial management and financial freedom.

Digital platforms

The pervasive presence of mobile phones in Kenya presents a unique opportunity to foster a culture of savings within rural smallholder households. Leveraging this widespread accessibility, financial institutions like Faulu Bank have developed innovative savings products that cater to the needs of rural communities, where basic feature phones are prevalent. Through the use of Unstructured Supplementary Service Data (USSD) technology, individuals can conveniently access Faulu Bank’s savings services directly from their mobile devices, even in areas with limited internet connectivity. This approach offers several advantages. First, it removes barriers to entry for individuals who may not have access to traditional banking services or internet-enabled smartphones. Secondly, by integrating savings mechanisms into a tool as ubiquitous as the mobile phone, the Bank encourages smallholder households to adopt regular saving habits and invest in their future financial security.

Financial literacy among children

Children are markedly more impressionable than their parents, making them ideal candidates for early education in financial literacy. The cultivation of financial acumen within farming communities can start by instilling these vital skills in schools. Faulu Bank’s innovative children’s financial empowerment program, the Hazina Junior account, serves as a prime example, introducing children as young as five years old to financial literacy. Expanding this initiative into school programs presents a remarkable opportunity to deepen understanding and foster responsible financial habits from an early age.

Read Also: Financial Literacy: Emulating Wealth Building Strategies For Economic Success




About Soko Directory Team

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system.Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

View other posts by Soko Directory Team


More Articles From This Author








Trending Stories










Other Related Articles










SOKO DIRECTORY & FINANCIAL GUIDE



ARCHIVES

2024
  • January 2024 (238)
  • February 2024 (227)
  • March 2024 (190)
  • April 2024 (133)
  • May 2024 (107)
  • 2023
  • January 2023 (182)
  • February 2023 (203)
  • March 2023 (322)
  • April 2023 (298)
  • May 2023 (268)
  • June 2023 (214)
  • July 2023 (212)
  • August 2023 (257)
  • September 2023 (237)
  • October 2023 (266)
  • November 2023 (286)
  • December 2023 (178)
  • 2022
  • January 2022 (293)
  • February 2022 (329)
  • March 2022 (358)
  • April 2022 (292)
  • May 2022 (271)
  • June 2022 (232)
  • July 2022 (278)
  • August 2022 (253)
  • September 2022 (246)
  • October 2022 (196)
  • November 2022 (232)
  • December 2022 (167)
  • 2021
  • January 2021 (182)
  • February 2021 (227)
  • March 2021 (325)
  • April 2021 (259)
  • May 2021 (285)
  • June 2021 (272)
  • July 2021 (277)
  • August 2021 (232)
  • September 2021 (271)
  • October 2021 (305)
  • November 2021 (364)
  • December 2021 (249)
  • 2020
  • January 2020 (272)
  • February 2020 (310)
  • March 2020 (390)
  • April 2020 (321)
  • May 2020 (335)
  • June 2020 (327)
  • July 2020 (333)
  • August 2020 (276)
  • September 2020 (214)
  • October 2020 (233)
  • November 2020 (242)
  • December 2020 (187)
  • 2019
  • January 2019 (251)
  • February 2019 (215)
  • March 2019 (283)
  • April 2019 (254)
  • May 2019 (269)
  • June 2019 (249)
  • July 2019 (335)
  • August 2019 (293)
  • September 2019 (306)
  • October 2019 (313)
  • November 2019 (362)
  • December 2019 (318)
  • 2018
  • January 2018 (291)
  • February 2018 (213)
  • March 2018 (275)
  • April 2018 (223)
  • May 2018 (235)
  • June 2018 (176)
  • July 2018 (256)
  • August 2018 (247)
  • September 2018 (255)
  • October 2018 (282)
  • November 2018 (282)
  • December 2018 (184)
  • 2017
  • January 2017 (183)
  • February 2017 (194)
  • March 2017 (207)
  • April 2017 (104)
  • May 2017 (169)
  • June 2017 (205)
  • July 2017 (189)
  • August 2017 (195)
  • September 2017 (186)
  • October 2017 (235)
  • November 2017 (253)
  • December 2017 (266)
  • 2016
  • January 2016 (164)
  • February 2016 (165)
  • March 2016 (189)
  • April 2016 (143)
  • May 2016 (245)
  • June 2016 (182)
  • July 2016 (271)
  • August 2016 (247)
  • September 2016 (233)
  • October 2016 (191)
  • November 2016 (243)
  • December 2016 (153)
  • 2015
  • January 2015 (1)
  • February 2015 (4)
  • March 2015 (164)
  • April 2015 (107)
  • May 2015 (116)
  • June 2015 (119)
  • July 2015 (145)
  • August 2015 (157)
  • September 2015 (186)
  • October 2015 (169)
  • November 2015 (173)
  • December 2015 (205)
  • 2014
  • March 2014 (2)
  • 2013
  • March 2013 (10)
  • June 2013 (1)
  • 2012
  • March 2012 (7)
  • April 2012 (15)
  • May 2012 (1)
  • July 2012 (1)
  • August 2012 (4)
  • October 2012 (2)
  • November 2012 (2)
  • December 2012 (1)
  • 2011
    2010
    2009
    2008
    2007
    2006
    2005
    2004
    2003
    2002
    2001
    2000
    1999
    1998
    1997
    1996
    1995
    1994
    1993
    1992
    1991
    1990
    1989
    1988
    1987
    1986
    1985
    1984
    1983
    1982
    1981
    1980
    1979
    1978
    1977
    1976
    1975
    1974
    1973
    1972
    1971
    1970
    1969
    1968
    1967
    1966
    1965
    1964
    1963
    1962
    1961
    1960
    1959
    1958
    1957
    1956
    1955
    1954
    1953
    1952
    1951
    1950