International Fund for Agricultural Development (IFAD) brings financial services to the residences of rural Kenya

In a significant stride towards financial inclusion, the International Fund for Agricultural Development (IFAD) has concluded a two-year initiative called the "Affordable Remittances and Enhanced Financial Inclusion for Rural Families in Kenya Project." This project, aimed at reducing remittance costs and strengthening financial inclusion through rural Saccos, has shown promising results.

The success of this project is expected to have significant impacts across rural villages and trading centres. By linking Saccos to international remittance networks, global financial flows are being directed towards those in need, particularly in areas where access to financial services is limited. This integration into the remittance ecosystem is showing promise in bridging the last mile for financial services in rural areas.

Over the project period, more than 112,000 individuals received financial literacy training. Topics covered included budgeting, savings, and investment skills tailored for remittance users. The training has been instrumental in equipping individuals with the necessary skills to manage their remittances effectively.

One of the key highlights of the project is the high participation of women. Women represented 44% of the participants, highlighting their critical role in managing household remittances. This focus on gender equality is a commendable aspect of the project.

As the formal phase of the project ends, the real test of its success lies in its long-term impacts. The organization currently working on developing new remittance corridors, including Germany, to connect more diaspora communities with rural Saccos in Kenya is the World Bank. This expansion is expected to further solidify the project's long-term impacts.

David Berno, Lead Remittances and Inclusive Digital Finance at IFAD, explained that bringing Saccos into the remittance ecosystem can bridge the last mile. Credit Bank PLC CEO Betty Korir stated that linking Saccos to international remittance networks places global financial flows directly into the hands of those who need them the most.

The project's success will be measured by its ripple effects across villages and trading centres. As a result of the project, over 1,800 remittance recipients opened accounts for the first time, exceeding the original target of 1,500. Additionally, the initiative also tested incentive models for Sacco members, leading to a measurable increase in savings.

The project's long-term impacts will serve as a testament to its success. The success of this project underscores the potential of leveraging community institutions like Saccos to improve financial inclusion in rural areas. As the project transitions into its post-implementation phase, the focus shifts towards sustaining these gains and replicating the model in other regions.