Monday 28 November 2011

I Cannot Respect My Relationship Unless the Man Makes More Money than Me: Societal Contributions to Gender Inequalities

"I cannot respect my relationship unless the man makes more money than me" was the response of a female radio host in Nairobi discussing recent research that found college educated females in the United Kingdom earn more income than their college educated male counterpart in the same occupation. The male host suggested that there should be a legislation restricting a wife from earning more income than her husband. 

A few weeks ago, another radio host asked listeners to discuss whether or not they have helped their ex-partners. He stated that women are “hateful toward their exes” and that the women President Obama once dated probably call Michelle Obama a “bitch” because they are jealous.

Last week, two radio hosts discussed the recent appointment of the new Pakistani ambassador to the United States. The female radio host questioned why a woman was chosen for the job because, as she explained, women are “push overs.” 

Over the course of four months, I have heard such gender based discussions on various Kenyan morning and evening radio programs. Such radio programs lead me to question how societal norms negatively impact the progression of gender equality in Kenya.

Kenya is not the only country that has to challenge social obstacles to strengthen gender equality for its citizens. In the United States, despite the increase to paid employment and access to education for women, women still perform that majority of house work in their families.  This trend was labeled the “double shift” by researcher Arlie Hochschild [1] to illustrate the unequal distribution of labor between men and women of the same household. 

How does anyone make sense of the international progress promoting gender equality while social norms and traditions of varies societies enforce unequal lives between men and women around the world?

In the article entitled “Why is progress in gender equality so slow? An Introduction to the ‘Social Institutions and Gender’ Index,” authors Denis Drechsler and Johannes Jutting [2] analyze how social institutions [3] impact gender equality despite wide spread economic growth and expansion of employment opportunities around the world.  

The authors argue that a “multilayered approach” is needed to address the root causes of attitudes and beliefs in a society. One layer of this approach is to promote and create a long lasting sustainable change in social attitudes through media channels and informational campaigns “…to win the support of the entire population, including men” (Drechsler and Jutting 82).  

As a student who once researched gender inequalities in Kenya, I argue that such a suggestion would be effective in Kenya. Despite international laws and treaties, the first The United Nations Third World Conference on Women held in Nairobi, the proliferation of Kenyan microfinance and the recent death of Kenyan activist and academic Wangari Maathai (a celebrated Kenyan who defied many gender roles of the past and present), many societal norms and traditions still negatively impact the progression of gender equality in Kenya.

Radio has the potential to influence the thousands of listeners who tune into the radio every day at home, work or on the road.  Radio can spark debates and responses from listeners suggesting this medium has the potential to influence stereotypes and perceptions of gender, but also increase dialogue that can lead society to question common societal beliefs and attitudes.


[1] Hochschild, Arlie R, and Anne Machung. The Second Shift. New York: Penguin Books, 2003.  

[2] Article taken from Chant, Sylvia H [editor]. The International Handbook of Gender and Poverty: Concepts, Research, Policy. Cheltenham, UK: Edward Elgar, 2010. 

[3] Social institutions are defined as “…long lasting codes of conduct, norms, traditions, and informal family laws that do not change over time” (Drechsler and Jutting 78).

Monday 21 November 2011

A Consumer Education Manual Outline is Born

As I will soon begin to assemble the consumer education manual, I have begun to meet with organizations dedicated to consumer education in Kenya to discuss what should and should not be included in the content. The goal of the manual is to create an easily understand and accessible education tool to contribute to the transparency of the microfinance industry, prevent predatory lending and reduce ill-informed financial decisions among the most vulnerable populations in Kenya.

At these meetings, I share with consumer organizations my ideas for the manual and then I ask for suggestions to improve the content in order to serve consumers with a practical and effective tool. Such collaboration is  an important preparation for the manual as consumer organizations will be one of the primary users in efforts to educate Kenyan consumers through trainings, workshops or education initiatives.

The representatives from organizations interested in using the manual in their programs include Consumers Unity and Trust Society, MicroJustice4All, Consumers Federation of Kenya and the National Coalition for Informal Sector Society.  I would like to thank each of these organizations for showing interest in my work and helping to improve upon it.

Through meetings with such organizations, I have created an updated outline for the upcoming manual. 

Outline for the Upcoming Consumer Financial Education Manual:
 
-LOAN PRODUCTS: A list and description of the loan procedures, terms and requirements of microfinance programs in Kenya. Business loan products of Faulu Kenya Limited, Jamii Bora Bank, K-Rep Bank, Kenyan Women Finance Trust Limited, Opportunity Kenya, Rafiki Limited and Women Enterprise Fund will be featured to create transparency for borrowers often unsure of the terms of their lenders. Sample of loan contracts from several of these institutions will be included in the manual as well.


-RESOURCES: Resources that can assist microfinance clients with addressing their questions and grievances, specifically the regulation authorities in Kenya, legal aid clinics and consumer advocacy organizations.


-QUESTIONS: Questions that all borrowers should ask their lenders before applying for a loan.


-TERMS: Glossary of terminology used by the microfinance industry, specifically language used in loan agreements.


-RIGHTS: Summary of consumer rights in Kenya and legislation regulating activities of the Kenyan microfinance industry.


-CONSEQUENCES OF DEFAULT: Summary of the consequences that result if a borrower defaults, including the legal requirements for the repossession and auctioning of chattel (securities). 


-EXPERIENCES: Over sixty microfinance borrowers have been interviewed to understand what information should be included in the manual, including what borrowers do and do not understand about their participation in microfinance. This will allow current borrowers the opportunity to contribute to the content and structure of the manual along with the education of their peers.

If a reader of this blog post has any suggestions for the manual, please feel free to contract me at hermanl [at] berkeley [dot] edu

Sunday 20 November 2011

More information about the Mbao Pension Plan for Jua Kali Workers

As I mentioned in my previous blog post, I conducted an interview with the CEO of the Mbao Pension Plan. This is the new individual retirement plan that is trying to change how Kenyan jua kali (informal economy) workers plan and save for the future. This new program registered by both the Kenya Revenue Authority and the Retirement Benefits Authority aims to create individual retirement saving plans for workers who do not have retirement pensions.

Below is additional information that I learned from the interview for those interested in learning about this affordable, flexible and convenient retirement plan. Such a plan is one example of how different types of financial services in Kenya are becoming "micro." Microfinance in Kenya is continually transforming.

-What are all of the requirements for a member to withdrawal from the program? The member must notify the head office with a letter of request to withdrawal from the program.

-Is there a penalty fee for early withdrawal? There is a fee, but it is minimal. I was unable to learn the exact figure.

-Are taxes paid after withdrawal? No.

-Is there an age requirement for membership and withdrawal? Any Kenyan older than 18 years.

-How much interest is earned? At least 7%.

-Are penalties charged for no contribution of the required amount each month?  No.

-Can a member withdraw their contributions in one sum? There are two options. First, a member can receive the total sum of their contributions. Second, a member can receive half of their contributions then schedule monthly disbursements.

-What is the time period it takes for a member to receive his or her contributions when exiting from the plan? Two weeks.

-How do members receive their contributions? Contributions are issued through a check that can be picked from a chapter office. In the future, contributions will be disbursed through M-PESA or AIRTEL.

-How do members receive their yearly statement documenting their contributions? The complimentary yearly statement is delivered to the member’s phone.

-Is training provided to members of the plan? Training is not currently provided, but in the future members will have access to training.

Information about the plan and membership plan application forms can be found at: http://www.rba.go.ke/component/content/article/81

Tuesday 15 November 2011

Mbao Pension Plan: How can millions of Kenyan jua kali, informal economy, workers save for retirement?

How are millions of Kenyan jua kali, informal economy, workers not saving for retirement?  I argue that most of these workers are not planning in any way for the day that they can no longer work.

Jua kali workers are employed by small businesses or employ themselves in small scale income generating activities. Such work results in small scale, irregular sources of income that often make it difficult to plan for the future, specifically retirement.  Most workers are trying to surviving today, thus planning for the future is often a luxury.

So, what can be done about it? 

A new individual retirement plan called the Blue MSMEs Jua Kali Individual Retirement Benefits Scheme, otherwise known as the "Mbao Pension Plan," is trying to change how such workers plan and save for the future. This new program registered by both the Kenya Revenue Authority and the Retirement Benefits Authority aims to create affordable, flexible and convenient individual retirement saving plans for workers who do not have retirement pensions. 

The Mbao Pension Plan is just one example of how different types of financial services in Kenya are become "micro." Microfinance in Kenya is continually transforming.

Members contribute at least 20 Kshs (about $0.20) per day, equaling 100 Kshs (about $1.00) per week  or 500 Kshs (about $5.00) per month. Such a sum is already saved daily by members of merry-go-round groups whom I have met in Nairobi slums and rural communities. The membership and activation fee for the plan is 100 Kshs. No other fees are charged for individuals who remain a member for one year before withdrawing from the scheme. 

Daily deposits are sent by individual members through M-PESA or AIRTEL MONEY (two mobile phone money transfer services) illuminating daily or weekly trips to the bank. I think this is the most important aspect of the program as most rural and urban informal workers own a mobile phone. Members can also track their contributions to their plan through a free statement that each receive once a year.

As someone currently researching financial services offered to Kenyan low income individuals, I argue that this plan has the potential to be a great tool, especially as the Kenyan unemployment rate and the cost of living in Kenya is rising. According to the Central Bank of Kenya, the inflation rate in Kenya is 18.91% as of October 2011. The annual average inflation for October 2011 was 11.49% suggesting that inflation has risen over the year. [1]

As of now, there are unanswered questions that anyone planning for retirement should ask of their plan. These questions include:  What are all of the requirements for withdrawal? Is there an early withdrawal penalty? Are taxes paid after withdrawal? Is there an age requirement for membership and withdrawal? How much interest is earned? Are penalties charged for no contribution of the required amount each month? I will post this information in the future for clarification. 

Information about the plan can be found at:   
http://www.rba.go.ke/component/content/article/81


[1] Central Bank of Kenya. <http://www.centralbank.go.ke/>.
The annual inflation rate is the change in the CPI in the current month relative to the index for the same month in the previous year.