PEGH Foundation poverty reduction research has shown that low- and moderate-income households in Kilifi County need to be especially careful in planning how to meet their daily needs, due to the scarcity and inconsistency of their income, weather unexpected shocks, and save for lumpsum expenditures. However, in Kilifi County the financial tools available to the poor to manage their money are often costly, unsafe, and inefficient. Money kept at home may be subject to theft, temptation, and family demands, while moneylenders and other intermediaries charge high fees and prohibitive interest rates. Formal financial institutions are largely inaccessible to the poor as they are often costly, hard to reach, and offer products that seldom suit their needs. Constraints in the ability to make and act on sound decisions related to one’s financial portfolio pose an additional barrier to the optimal use of financial tools in ways that enhance the welfare of the poor. In response, households often make costly choices, such as selling valuable assets in response to economic shocks and failing to take advantage of potentially beneficial investments in their households and businesses. In this regard therefore PEGH Foundation has already designed measures to make affordable financial tools available to the low and moderate income households in the County.
Posted on: Fri, 07 Jun 2013 07:33:45 +0000
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