Most of the world’s poorest people still have no access to basic financial services - and in the 260 iMlango communities in which we work, access to finance is extremely limited. sQuid Microfinance helps to overcome the barriers to accessing finance and education – helping the unbanked to lift themselves out of poverty.
sQuid Microfinance is part of the award-winning iMlango education programme operating in rural schools in Kenya. Microfinance is open to parents with micro-businesses and aims to help them improve their economic situation, and to ensure their children continue to attend school.
Salina, sQuid Microfinance Customer, Uasin Gishu County
Jane, sQuid Microfinance Customer, Makueni County
Using sQuid’s smart transaction platform, our customers are registered in the system and issued with a smartcard connected to their digital account. On approval of the application, the account is credited with the loan, and the client cashes out at an approved Agent (e.g. local shop). Clients make monthly repayments using their smartcard at an Agent, accessing their digital account, and paying cash over the counter. This allows sQuid to have real-time visibility of payments and to address immediately any non-payment issues.
We help the parents form groups of up to 10 people with mutual undertakings to support each other in ensuring payments are made on time, helping to reduce defaults. We explain the importance of setting aside money for the education of their children, and support them in thinking through their financial strategy.
Having been involved with these communities since 2014, we have deep knowledge of the issues they face in securing a good education for their children, and in facing the challenges of poverty. Yet the spirit of entrepreneurship exists, with a vast number of microbusinesses which address the needs of each community. We believe that our unique combination of emphasis on education, now combined with accessible microfinance, is helping to significantly improve the outlook for these communities.
Our digital system allows customers to hold additional money in an eMoney account which sits alongside their digital loan account. All clients are encouraged to set aside Personal Education Funds in this way, to give them resources for supporting the education of their children.
Our Philosophy
iMlango’s philosophy is to create economic value within these communities, deriving revenues from them in a sustainable manner, with a profitable financial inclusion model – ensuring that the iMlango educational services can continue to flourish and benefit the whole community.
iMlango is an award-winning community education initiative that has been in operation in four counties in rural Kenya since 2015. Endorsed and supported by the Kenya Ministry of Education, it is uniquely funded by a combination of UK DFID grant and partner contributions. It has brought digital access and learning for students and teachers in 260 schools through an integrated combination of internet access, computer devices, online learning platforms and content, supported by teacher and community support, all aimed at improving education outcomes for children.
With a full scale operation in Nairobi, sQuid is a driving force behind the iMlango initiative, bringing a combination of technologies that include real-time digital attendance monitoring for students at school, a unique online education portal, with dynamic content supporting teachers and learners in improving learning outcomes, together with a fully qualified and highly experienced field team to support and manage iMlango communities.
iMlango communities are rural or semi-rural, characterised by economic and educational marginalisation. School systems are overloaded, the education level of parents is typically very low, and banks are rarely present. However, entrepreneurship is strong and there is no lack of business drive amongst the families in these communities. sQuid Microfinance aims to help these entrepreneurs unlock their business potential, and ensure they can provide for the education of their children.
