According to a preliminary study we conducted, it revealed 90% of the sampled population in the slum earned 1 USD on average and 92.2 % of them were willing to save at least 10% of the income for a cause that would improve their livelihoods or guarantee their survival. The percentages and on what interventions the savings will be split into (solar lamps, evacuation etc) was primarily informed by the study as well, however there was an array of different proposals and suggestions , a further aggregation and synthesis of the study came out with the four intervention paths (livelihood creation and development, acquisition of renewable energy source solar lamps and cooking stoves, evacuation into safe grounds in case of climate disaster and restoration of economic activities) which were validated in a workshop with slum population. The acquisition of solar lamps and energy saving stoves was particularly motivated by ecological and economic reasons, if the population switched from kerosene use to solar lamps they are able to save up 0.05 USD per day which can be channeled to savings. this amount is already half the daily contribution rate. On the other side it immensely contributes to carbon emission reduction.
The model we are proposing is a hybrid of micro finance and micro insurance with a social welfare dimension to increase resilience of the slum dwellers in the face of the effects of climate change. As opposed to regular micro insurance where premiums are lost when the risk doesn't materialize in this model they are used to establish income generating activities. It equally ensures that when the climate disasters occurs the economic livelihood activities can be restored after evacuation.
We intend to strategically partner with two organisation in order to leverage on two aspects. Lakeside Hub which is in the private sector will provide us with technological mechanisms to manage the amounts in their respective splits by creating and maintaining for us a finance software which will ensure efficient tracking of funds in and out. Secondly Kenya Industrial Research and Development Institute, a government institution will offer training and product incubation for startups before loans can be accessed to upscale the economic activities. This will help increase the success rate of the startups and consequently reducing on the chances of running into the debt trap. We will also set up a business development unit within the organisation which will provide training mentor ship linkage to business champions for the start ups. Finally the credit facility will be accorded according to creditworthiness in terms of saving and group guarantee system of a common asset are some of common practice used to ensure the recipients are not overburdened to repay and fall into the debt trap and in so doing money is also not lost.
Thanks Lucy for your objective contribution to the development of this idea, Sensitization of the effects of climate change and the importance of building resilience will actually be the preface of the project. I really appreciate