TRAINING OF TRAINERS (TOT) FOR UWEZO FUND MANAGEMENT COMMITTEE ON INTRODUCTION TO TABLE BANKING. By: Anne Kamau

Transcription

1 TRAINING OF TRAINERS (TOT) FOR UWEZO FUND MANAGEMENT COMMITTEE ON INTRODUCTION TO TABLE BANKING By: Anne Kamau

2 What is Table Banking (TB?) Table banking is a group based funding strategy in which members save once per month and the money is immediately borrowed by the members. Table banking has the following features: Fund is owned by the group The group has set rules and regulations for lending and repayment Members pay interest on the loan The interest accumulated is shared through bonuses It has group credit committee (GCC) which receives and appraises the loan applications

3 Table Banking group formation A group shall consist of members. The concept does not deal with individual clients but rather with groups. In order for one to obtain service, one should join or organize to form a group. The membership, leadership and governance structures of the group must comply with the gender rule where at least 1/3 of the membership and leadership roles are undertaken by either gender. An exception to this rule shall only apply to groups whose membership is exclusively of the same gender.

4 Membership Eligibility Criteria Male- Must be between18-35 years of age and hold a valid Kenyan National Identity Card Female member be of 18years and above and hold a valid Kenyan National Identity Card A member must: Be well known to other group members Be accepted by the other group members Be willing to attend group monthly meetings Be willing to participate in group trainings Show commitment through building shares, obtaining credit and repaying the credit Be engaged or willing to engage in an income generating activity that is viable, legal and socially acceptable either as a group or as an individual member Not belong to more than one group for the purposes of benefitting from Uwezo Fund.

5 Group Registration All groups must be registered with the department of social services, co-operative or Registrar of Societies within their areas of operations. The group officials verify with the government authority whether the proposed group names already exist. If not, then one of the names is chosen. The officials collect the registration form and with the fill in the details as required. The officials ensure that the form is signed and stamped as required. The duly completed form must have the following attachments:- Minutes of the group meetings; The group constitution; Registration fee; The group officials follow up on the certificate of registration for the group.

6 Group formation stages and patterns of behaviour within a group A typical group goes through five important stages of development and ischaracterized by definite patterns of behaviour as discussed below:

7 Stages

8 Stages (2) Stage 1: Forming the group This is the initial stage in the life of a group. The stage is characterized by members seeking safety and protection, tentativeness of response, seeking contact with others and demonstrating dependency on existing authority figures. Members at this stage are also positive and anxious as they have not fully understood the purpose of the group.this stage can last for some time as members engage in busy type of activity. Stage 2: storming Members seek out familiar or similar individuals and begin a deeper sharing of self. Continued attention to the subgroup creates a differentiation in the group. It is at this stage where many groups collapse if these differences are not conclusively addressed.

9 Stages (3) Stage 3: Norming Members begin to open up and seek out other members in the group. Efforts are made to establish various norms for task performance. Members begin to take greater responsibility for their own work. Stage 4: performing This is a stage of a fully functional group where members see themselves as a group and get involved in the task. Each person makes a contribution and the authority figure is also seen as a part of the group. Group norms are followed and collective pressure is exerted to ensure the effectiveness of the group. The group redefines its goals in the light of information from the outside environment and shows.

10 Stages (4) Stage 5: Adjourning Many groups will reach this stage eventually. For example, project groups exist for only a fixed period, and even permanent groups may be disbanded through organizational restructuring. Members who like routine, or who have developed close working relationships with other members, may find this stage difficult, particularly if their future now looks uncertain

11 Composition of a Group With the members, each member: Pays a non-refundable Registration Fee of a minimum Kshs.150 to the group Acquire a passbook. This book serves as a dual purpose: As the member s personal identification card since it contains basic information on each member i.e. the group name, an identification number, the member s full name and address among other details. As a personal receipt or voucher book. Makes a minimum savings per month of kshs.100 Contributes to the group s insurance account with a minimum of Kshs. 20; this shall gradually grow to match the loan advanced

12 Group Constitution The group must have a written constitution that gives precise information about the group. This contains information such as: Group name When the group was formed Group objectives and activities Group membership Election of group officials Committee responsibilities and duties Group meetings The rules and regulations of the group Group records, savings, loan and default management Member termination Group account and signatories Dissolution of the group Declaration NB: It is advisable to keep the written constitution at the back of the group file to facilitate occasional update.

13 Group Work Group registration, formation & setting rules and regulations In your groups discuss: List required documents for group registration Assess the familiarity of the individual members in your group and commitment to group activities List some of the internal rules and regulations that will guide group activities

14 THE END Any questions