Across the North Rift, young people face unique challenges in accessing financial resources to support their farming and entrepreneurial ventures. Traditional financial institutions often require collateral, credit history, or large deposits that many youth do not have. To bridge this gap, ADS North Rift has been championing Community-Based Microfinance (CBM) as a sustainable and inclusive solution.
What is CBM?
Community-Based Microfinance is a simple but powerful model where individuals come together to form savings groups. Members contribute small amounts regularly, pool their resources, and then borrow from the group to fund income-generating activities, meet personal needs, or invest in agriculture. It is finance by the community, for the community.
Why CBM Matters for Youth
Accessible and Affordable – Unlike formal banks, CBM does not require complex paperwork or collateral. Youth can access loans at fair rates within their groups.
Financial Discipline – Regular contributions help members build a culture of saving, which is often a barrier for many young people.
Business Growth – Funds borrowed can support agribusiness, buy inputs, or diversify into value addition and other enterprises.
Social Bonding and Accountability – The group model strengthens trust, teamwork, and mutual support among youth.
Resilience – Members create a safety net that cushions them against unexpected financial shocks such as medical emergencies or poor harvests.
How Youth Can Adopt CBM
Form or Join a Group: Gather friends, fellow farmers, or neighbors with a shared goal.
Agree on Contributions: Decide how much each member will save weekly or monthly.
Set Rules: Establish clear guidelines for borrowing, repayment, and record-keeping.
Reinvest Wisely: Use borrowed funds for productive ventures that generate income and sustainability.
Seek Training: Work with organizations like ADS North Rift, which provide financial literacy and group management skills.
Building a Future Together
CBM is not just about money; it is about empowerment, dignity, and creating opportunities where they are needed most. For the youth of the North Rift, it offers a pathway to self-reliance, stronger agribusiness ventures, and greater resilience in the face of economic challenges.
At ADS North Rift, we believe that when young people are given tools to take charge of their financial future, they can transform their lives, families, and communities.
Start small. Grow together.
