Rural Entrepreneurship for Youth & Women
Unemployment and poverty are daunting challenges in our communities, especially for women and young people. Aliyeik Initiative tackles these issues head-on by nurturing entrepreneurship and financial inclusion in rural areas. We help vulnerable groups move from dependence to self-reliance through training, mentorship, and access to capital. By focusing on women and youth, we ensure those most affected by poverty become the drivers of local economic growth.
At the core of our approach is the Poverty Graduation Model, a two-year program that empowers ultra-poor households to start sustainable livelihoods. We identify families struggling to meet basic needs and enroll them in a step-by-step process: first providing training in basic business skills and financial literacy, then supporting them to form Savings and Loan Groups for peer support, and finally offering a small seed grant or linking them to a revolving fund to kickstart a business. Each participant also receives regular coaching from our field officers to overcome challenges as they build their enterprise. Through this model, a participant “graduates” when they have a stable income, savings, and food security. We have seen remarkable success – families that once relied on relief aid are now running their own small businesses like grocery kiosks, tailoring shops, poultry farms, and more.
We place a strong emphasis on forming and strengthening community savings groups (sometimes called Village Savings and Loan Associations – VSLAs). Aliyeik has mobilized dozens of self-help groups across Marsabit and neighboring areas. We train these groups (often 20-30 members each) in group governance, record-keeping, and savings & lending methods. Members save money in a common pot and take turns borrowing to invest in their own micro-businesses. These groups have become a lifeline – not only do they provide affordable credit in villages with no banks, but they also foster solidarity. Many groups use interest earnings to start communal projects like buying water tanks or starting a group farm. To date, we have trained 55 community groups (over 1,500 individuals) in microfinance and entrepreneurship, and facilitated seed funding for 38 of those groups through the government’s Poverty Eradication Commission revolving loan fund. Thanks to this support, women street vendors have expanded their inventory, youth farmers have bought better seeds, and artisans have purchased tools – all fueling local economies.
We encourage climate-friendly and socially impactful businesses. This means guiding entrepreneurs to identify opportunities that not only make profit but also solve community problems. Some examples include businesses like solar phone charging stations, briquette making from recycled waste (offering an alternative to charcoal), beekeeping for honey (which also promotes pollination), and moringa tree nurseries (providing nutrition and drought-resistant crops). By incubating these “green businesses,” we ensure that entrepreneurship contributes to environmental resilience and community well-being. We have run special youth innovation challenges where young people pitch business ideas that address issues like garbage management or water purification – winners receive small grants to pilot their ideas. Through mentorship and connections to partners, a few of these ideas have grown into real enterprises. Our approach is to build entrepreneurs who are also community changemakers.
In partnership with Marsabit County officials, Aliyeik Initiative manages the Uwezeshaji Fund – a pool that provides zero-interest small loans to women and youth groups. Each group that completes our training becomes eligible to apply for a group loan, typically used to inject capital into their collective business or to on-lend to members’ individual businesses. One success story is the Huruma Women Group in Marsabit: 15 women who started a small dairy business. After training, they received a KES 100,000 loan (about $800) from Uwezeshaji Fund. They purchased additional goats and a milk cooling tank. Within a year, the group’s daily milk sales doubled, each member’s income grew, and they repaid the loan in full. The fund’s revolving nature means that once one group repays, another group can borrow – creating a sustainable community credit system. To date, 20 groups have benefited from the Uwezeshaji Fund, with a 98% repayment rate. This high repayment is a sign of both the success of the businesses and the solidarity among members (groups often enforce their own repayment discipline). “We never imagined a bank could come to our village,” says Naomi, a member of Huruma Women Group. “Aliyeik trusted us with a loan when no one else would. Now our group is strong – we even employ two young men to help deliver milk. We feel in control of our future.” This project exemplifies our belief that given the opportunity and support, women and youth are extremely creditworthy and capable of lifting their communities out of poverty.
Aliyeik’s entrepreneurship programs have catalyzed significant economic and social benefits. Household incomes have increased for the majority of participants – an internal survey found that 96% of families in our graduation program had at least two sources of income and could afford three meals a day by the end of the two-year cycle. We’ve seen over 150 new businesses launched as a result of our support, ranging from small shops and poultry farms to motorcycle transport services. Importantly, these businesses are creating local employment: e.g., a group-established brick-making enterprise not only earns the group money but also hired 8 young men who were previously idle. Women’s empowerment is evident – many women entrepreneurs report greater decision-making power at home and in the community. They are able to pay school fees for their children and invest in their homes (some have even built iron-roof houses replacing old thatched huts). Through group savings, members collectively saved more than KES 5 million (approximately $35,000) in the past three years, building a financial cushion that was unheard of before. These savings proved critical during emergencies like medical issues or drought; families no longer have to sell all their assets or rely solely on aid because they can borrow from their group fund. On the social side, the act of coming together in groups has strengthened community bonds. Youth from different villages now network through business forums we facilitate, sharing tips and supporting each other rather than feeling hopeless or turning to negative activities. And by promoting green businesses, we are also nurturing a culture of sustainability – many entrepreneurs plant trees, keep their surroundings clean, and consider social impact as part of doing business. All these outcomes reinforce our conviction that the surest way out of poverty is not a handout, but a hand up – equipping people with tools to succeed on their own initiative.
Halima was a young widow with three children, living in a remote village. With no steady income, she depended on occasional casual labor and relief food. In 2019, Halima joined one of Aliyeik’s savings groups called Tujikaze (“Let’s Empower Ourselves”). Through the group, she saved small amounts each week. She also attended our business training and developed a plan to start a small tailoring business since she knew how to sew. With a seed grant of KES 20,000 (about $160) from the graduation program, Halima bought a second-hand sewing machine and materials. She began making school uniforms and selling them locally. Today, Halima runs a thriving micro-enterprise – she even travels to the market in Marsabit Town to sell her products. Her children are in school and well fed, and Halima herself became a trainer of others in her group. “I feel proud when other women come to me to learn,” she says. “I tell them if I could do it, you can too. We have learned to lift each other up.” Halima’s story is one of many that show how empowering one determined woman can uplift an entire family and inspire a whole community.