13/01/2020
DESIGN OF THE CLUB
We form groups of 10 and raise Ksh.5,000 each. That makes it Ksh.50,000, which will go to the Central Account.
We guess no one has borrowed more than Ksh.50,000 through mobile loan apps. This Ksh. 50,000 in the Central Account will be helping each of the 10 members repay their mobile loans.
You tell members how much is needed of you. You'll then repay your loan, borrow again, then return to the Central Account. That will ease pressure on your salary/ regular source of income.
That will ensure that you gradually reduce the amount you're borrowing again. For example if KCB M-Pesa has given you a Ksh.25,000 loan limit, for subsequent borrowing you can borrow 20K, then 15K, etc. In the end you will cut off dependency on this.
On the side, we'll have a merry-go-round where each of the ten gives 3K a month (the initial 5K will be a one-off sum).
This 3K will be given out in turns to each of the 10, as an effort to bolster earnings and maybe get rid of mobile loan temptations.
But before we exchange money, each of the 10 has to sign a contract by an advocate. One also has to produce a national ID, at least one social media handle, and a mandatory production of the three most contacted people. These will be used to name and shame anyone who misbehaves. Each of the 10 members will have those mandatory details of every member.
The Central Account will be in a bank and will need at least five members to sign before withdrawal can be done.
It's an idea we are still fine-tuning. Can it work? Let's share.
