The Managed ASCA Model: Innovation in Kenya’s Microfinance Industry

S Johnson, N Mule, R Hickson, W Mwangi

Research output: Contribution to journalArticle

5 Citations (Scopus)

Abstract

A model of microfinance has been operating in the Central Province of Kenya since the early 1990s largely unnoticed by donors. The model involves the mobilization of women into accumulating savings and credit associations by local NGOs that assist in the management of the fund in return for a management fee. The approach was developed in the early 1990s as a result of the withdrawal of donor support to traditional women"s group activities and the local NGOs are now entirely self-supporting. The outreach of the services is comparable to the main donorfunded initiatives and evidence suggests that depth of outreach to poorer people may in fact be better. This paper describes the model and explains its apparently successful performance. However, the analysis also suggests that the model has inherent weaknesses, especially in default management, that need to be addressed if its success is to continue.
Original languageEnglish
Pages (from-to)56-66
Number of pages11
JournalSmall Enterprise Development Journal
Volume13
Issue number2
Publication statusPublished - Jun 2002

Fingerprint

microfinance
Kenya
innovation
industry
nongovernmental organization
non-governmental organization
management
fee
withdrawal
savings
mobilization
credit
performance
evidence
Group
woman

Cite this

The Managed ASCA Model: Innovation in Kenya’s Microfinance Industry. / Johnson, S; Mule, N; Hickson, R; Mwangi, W.

In: Small Enterprise Development Journal, Vol. 13, No. 2, 06.2002, p. 56-66.

Research output: Contribution to journalArticle

Johnson, S ; Mule, N ; Hickson, R ; Mwangi, W. / The Managed ASCA Model: Innovation in Kenya’s Microfinance Industry. In: Small Enterprise Development Journal. 2002 ; Vol. 13, No. 2. pp. 56-66.
@article{9d8200087141450189fcc3646c48a2d4,
title = "The Managed ASCA Model: Innovation in Kenya’s Microfinance Industry",
abstract = "A model of microfinance has been operating in the Central Province of Kenya since the early 1990s largely unnoticed by donors. The model involves the mobilization of women into accumulating savings and credit associations by local NGOs that assist in the management of the fund in return for a management fee. The approach was developed in the early 1990s as a result of the withdrawal of donor support to traditional women{"}s group activities and the local NGOs are now entirely self-supporting. The outreach of the services is comparable to the main donorfunded initiatives and evidence suggests that depth of outreach to poorer people may in fact be better. This paper describes the model and explains its apparently successful performance. However, the analysis also suggests that the model has inherent weaknesses, especially in default management, that need to be addressed if its success is to continue.",
author = "S Johnson and N Mule and R Hickson and W Mwangi",
year = "2002",
month = "6",
language = "English",
volume = "13",
pages = "56--66",
journal = "Small Enterprise Development Journal",
issn = "0957-1329",
publisher = "Intermediate Technology Publications Ltd",
number = "2",

}

TY - JOUR

T1 - The Managed ASCA Model: Innovation in Kenya’s Microfinance Industry

AU - Johnson, S

AU - Mule, N

AU - Hickson, R

AU - Mwangi, W

PY - 2002/6

Y1 - 2002/6

N2 - A model of microfinance has been operating in the Central Province of Kenya since the early 1990s largely unnoticed by donors. The model involves the mobilization of women into accumulating savings and credit associations by local NGOs that assist in the management of the fund in return for a management fee. The approach was developed in the early 1990s as a result of the withdrawal of donor support to traditional women"s group activities and the local NGOs are now entirely self-supporting. The outreach of the services is comparable to the main donorfunded initiatives and evidence suggests that depth of outreach to poorer people may in fact be better. This paper describes the model and explains its apparently successful performance. However, the analysis also suggests that the model has inherent weaknesses, especially in default management, that need to be addressed if its success is to continue.

AB - A model of microfinance has been operating in the Central Province of Kenya since the early 1990s largely unnoticed by donors. The model involves the mobilization of women into accumulating savings and credit associations by local NGOs that assist in the management of the fund in return for a management fee. The approach was developed in the early 1990s as a result of the withdrawal of donor support to traditional women"s group activities and the local NGOs are now entirely self-supporting. The outreach of the services is comparable to the main donorfunded initiatives and evidence suggests that depth of outreach to poorer people may in fact be better. This paper describes the model and explains its apparently successful performance. However, the analysis also suggests that the model has inherent weaknesses, especially in default management, that need to be addressed if its success is to continue.

M3 - Article

VL - 13

SP - 56

EP - 66

JO - Small Enterprise Development Journal

JF - Small Enterprise Development Journal

SN - 0957-1329

IS - 2

ER -