BUVAD has plans to create a banking co-op.  Currently in the BUVAD pilot programme area, there is little or no access to banking.  What little the community knows from first hand experience or word of mouth is not positive.  This was the overwhelming message we got during our recent survey.

A village credits scheme would enable the community to control its own banking democratically and get loans at favorable rates.  The benefits of these co-operatives are that they are member owned, member used and member controlled.  The co-op will charge a membership fee, which enables the member to use the co-op as a savings account and when the member purchases shares, enables them and others to borrow money.  The money loaned is taken from the pool of shares bought by members.  Once these co-ops are set up, BUVAD will search for seed money in the form of grants that are given in support of community banks; this seed money will be added to the shares the co-op has already collected.  Membership fees go to the administrative costs associated with running the co-op.  The treasurer, a member of the community, keeps funds safe by opening an account at a regular bank in the co-ops name.

It is BUVAD’s hope that once the Sunflower seed oil programme is established, the co-op will follow soon after.  Once the co-op is established in the pilot area, membership can expand to the Sub County.