Enabling SDG 1: End poverty in all its forms everywhere - Spotlight on Kenya | Annah Mumbe | Yehu Microfinance

Breaking the Cycle of Poverty: Annah Mumbe's Journey with Yehu

Annah's First Steps Towards Financial Empowerment

In 2018, Annah Mumbe joined Yehu Microfinance Services Ltd after completing a comprehensive month-long training in financial management and savings. Equipped with newfound skills, she received her first loan of KES 30,000 (approximately USD 300), which she used to open a small hotel, marking the beginning of her financial empowerment. This initial venture significantly improved her financial situation and set her on a path to greater stability.

Since its foundation in 1998, Yehu Microfinance has been dedicated to reducing poverty through accessible financial services. With 16 branches throughout Kenya, Yehu provides not only loans but also training and mentorship to its clients. This holistic approach has been instrumental in transforming lives like Annah’s, fostering sustainable development, and creating positive community impacts.

Expanding Ventures and Diversifying Income

After successfully repaying her first loan, Annah took out a second loan of KES 80,000 (approximately USD 800) in 2019. With this, she purchased two cows and a cow-pulling cart, diversifying her income and enhancing her household’s food security. By 2020, Annah secured another loan of KES 100,000 (approximately USD 1,000) to buy a piece of land, providing a stable asset for her family.

Continuing her upward trajectory, Annah borrowed KES 100,000 in 2021 to buy a motorbike, which facilitated her business operations and increased her productivity. After repaying this loan, she took out another KES 100,000 to start a kiosk, further expanding her entrepreneurial ventures. In 2022, she borrowed KES 150,000 (approximately USD 1,500) to register for M-PESA services, a mobile phone-based money transfer system, broadening her business scope and enhancing financial inclusion within her community.

Thanks to Yehu, Annah's financial situation has greatly improved. Initially facing financial challenges, she now leases her motorbike, cows, and pulling cart to neighbors, generating additional income. The motorcycle is crucial for her daily operations, enhancing efficiency and productivity.

Annah’s objective is to complete payments for an acre of land, construct rental houses, and provide education for her children, breaking the cycle of poverty for future generations.

The Power of Microfinance in Community Development

Annah's journey with Yehu Microfinance exemplifies the transformative power of financial inclusion in addressing Sustainable Development Goals (SDGs), particularly SDG 1: No Poverty and SDG 8: Decent Work and Economic Growth. Access to microfinance has significantly improved her financial situation, created multiple income streams, and contributed to local economic development.

Her investments in livestock and land enhance food security (SDG 2: Zero Hunger), and her aspiration to educate her children supports SDG 4: Quality Education. As a successful woman entrepreneur, Annah's story promotes SDG 5: Gender Equality. The adoption of mobile money services aligns with SDG 9: Industry, Innovation, and Infrastructure, and her improved economic status contributes to SDG 10: Reduced Inequalities.

Annah's experience highlights how targeted microfinance initiatives can drive sustainable development and create positive community impacts.

To learn more about the United Nations Sustainable Development Goals, visit https://sdgs.un.org/goals.