Uvumbuzi proposes to pilot the bicycle credit scheme with a group of rice farmers and traders in Mwea region, a rural area in central Kenya. The members of Kimbimbi Pioneer Group are interested in using bicycles for more efficient and on-time delivery of rice to consumers. The group has a membership of 38 people 27 of whom are women. The groups has already established its own savings and credit scheme, to which members contribute an average of Kshs 2000/month [Euro 20 equivalent]
The first phase of the credit scheme, covering 6-9 months will aim at enabling all the 38 members acquire a bicycle which they would be expected to re-pay within a period not exceeding 9 months. The second phase, covering, up to 15 months of project inception will aim at expanding the programme by allowing those who have repaid to acquire a second bicycle, or bringing in new groups into the scheme.
Overall, the project aims at directly supporting 80-90 people with the credit scheme, and providing indirect employment to between 100 and 120 people through business spill-over. Among the direct beneficiaries, 70 % will be women.
The Kimbimbi Pioneer Group has recently formed an affiliation with Fountain Enterprise Programme, which is a growing nation-wide business development assistance programme that aims at supporting small scale entrepreneurs improve critical aspects of business management. One of the challenges that the Kimbimbi Pioneer Group is facing is the need to have means for quick transportation of rice from storage points to surrounding small rural trading centers. Use of bicycles would greatly enhance their marketing activities which is an important part of the group’s business growth strategy.
The expected results can be summarised as follows:
A successful model of bicycle credit scheme developed within a 18 month period. Key measures of success here include full repayment of bicycle loan within a maximum of 15 months and money recovered from the repayments used to start a second cycle of bicycle credit.
A minimum of 80 people will have acquired bicycles through the scheme by the 15th month.
At least 10% growth in business receipts from those using bicycles primarily for business operations
At least 20 people employed directly in cycling operations by bicycle owners