MICROFINANCE WITH H30  
 
In the greater Machakos region, over 63.3% of people live below the poverty line , contributing 4.4% to the national poverty. This situation has been brought about by several factors, ranging from the persistent draughts in the area, increasing population, unsustainable Agriculture and lack of rural non-farm enterprise.
The poverty index, which is higher among the rural folk, and worsened by the lack of opportunity in the region, lowers people’s confidence, disempowers them and makes them live in sheer vulnerability . PEN has been responding to this situation by initiating micro credit services to the poor of the poorest in Kangundo and Kajiado districts. In partnership with h3o, PEN has been involved in contribution of small loans to the poor entrepreneurs to start small businesses in the areas of tailoring, bee keeping and honey processing, fruit processing, food kiosks and sale of cereals.
Since the inception of this initiative, PEN has recorded positive results, since it has had a catalytic effect on productivity of the existing and new enterprises among the rural poor. It has also been proved that micro credit can spur enterprises which can in turn provide the best and only way to improve the poverty situation in the poor rural villages.

“Since I received this loan, my business of buying and selling cereals has recorded a boom and the profits have doubled. I have earned respect in the community since I can be able to afford my basic needs as well as those of my family” Patrick Ngila Mutuku-Member, Kyevaluki Self Help Group

The micro credit scheme is aimed at providing these poor people with the funds and financial services they need to start their small enterprises and multiply their earnings, which will ultimately relieves  them from the poverty trap.
Besides provision of micro credit, PEN has been involved in the development of community based savings in these groups to develop a pool of money from where the members can borrow and repay with interest. The interest paid on loan enlarges the pool, enabling more to borrow and start or replenish their existing businesses.   
The savings are banked with a reputable finance institution, to guarantee safety, and are insured against any eventuality e.g. default, death of a loanee or theft of the cash on transit to the bank.PEN also facilitates the schemes to consolidate the already established savings discipline, credit provision and the scheme policy, as well as records. Our main target in this area will mainly be women, the elderly and youth who lack core assets such as land and have been squeezed out of the mainstream economy.