Appendix 12 ~ Namayiana impact study report

Appendix 12

Longitudinal Impact Study of Namayiana Maasai Women group (2008-2014)

Table of Contents Page Table of Contents

1

List of Figures

1

Background of the study

2

Overview of the handicraft industry in Kenya

4

Historical Background of Namayiana

5

Review of Business and Commercial Performance of Namayiana (2008-2014)

6

Social Impact

12

Conclusion

19

List of Figures Figure 1: Sales value of Namayiana from 2008 to 2014

8

Figure 2: Average monthly income of producers of Namayiana before and after Shared Interest interventions 13 Figure 3: Average monthly salaries of employees of Namayiana (2008-2014)

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1

Background to the study Namayiana is a cooperative group of handicraft producers who are specialised in the creation of Maasai beaded items. As far back as 1990, the group has worked relentlessly to deliver quality beaded products for the export market. Since 2009, Shared Interest has been providing various levels of financial support to Namayiana in the form of Term Loans and Export Credit, with the overall goals of helping the group improve the livelihood of their members and to promote development in their community. Today Namayiana has made great strides towards achieving these goals.

The present study, therefore, set out to review progress made by Namayiana over the past six years. The study specifically sought to determine the impact of Shared Interest interventions on the business of Namayiana and on the livelihood of their producers and their households and on the community. In all, three main research questions were formulated to guide the study. These are: i.

What level of support has Shared Interest provided to Namayiana over the past six years?

ii.

Has Shared Interest support made any difference as far as Namayiana’s business operations and commercial performance are concerned?

iii.

What has been the social impact of Shared Interest support to Namayiana over the past six years?

The study utilised a mixed method evaluation approach to gather data from different sources for triangulation purposes and in order to arrive at valid and more reliable conclusions. First, all relevant documentation on Namayiana were reviewed; these included proposals, annual reviews and financial records. Second, qualitative data gathering methods, namely group discussions and interviews were employed to gather relevant data for the study. Key informants such as Namayiana Assistant Project Manager, the Chair Lady of the group and the Namayiana Centre Supervisor and best bead designer of the group were interviewed. Third, a mini-survey involving 15 producers of Namayiana was carried out for quantitative data gathering to answer 2

the main research questions of the study. In addition to the above mentioned methods, home visits were undertaken to ascertain the level of change that has taken place at the household level.

The findings of the study were quite impressive. For six consecutive years, Shared Interest has consistently supported Namayiana with a grant, an export credit and five separate term loans for different purposes. The various interventions of Shared Interest have impacted positively on the business and commercial performance of Namayiana, leading to improvement in the livelihood of producers and their households. Namayiana, with the support of Shared Interest, is now championing the development of their community by bringing some basic services to the area. The producers of Namayiana unanimously asserted that “indeed Shared Interest support has enabled Namayiana to transform the landscape of the community.�

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Overview of the handicraft industry in Kenya Kenya is situated right along the equator, on the eastern coast of the African continent. Its coastal region is on the southeast; it borders Somalia to the east, Ethiopia to the north, Sudan to the northwest, Tanzania to the south and Uganda to the west. Kenya has a total area of 224,961 square miles including a land area of 219,788 square miles. The population is estimated at 45,010,056 with 2.11% growth rate. Kenya’s economy is market-based with a few state-owned infrastructure enterprises. The main industries are agriculture, forestry and fishing, mining and minerals, tourism and of course handicraft.

The Kenyan handicraft industry falls under Small and Medium Enterprises (SMEs).

These enterprises cut across all sectors of Kenya’s economy and support the livelihood of many Kenyans through job creation and income generation. In Kenya, just like other handicraft producing countries across Africa, handicraft production is cultural, traditional and predominantly a cottage industry. The handicraft enterprises are usually family owned and the skills are passed along family lines. Production is mostly based on indigenous knowledge supported by proximity and availability of raw materials. Handcrafting is carried out in open shades and under trees in homes.

The Kenyan handicraft has, over time, transitioned from being a cultural practice to a 4

commercial enterprise and has become a viable sector of the national economy. The artisanal products, which were produced as cultural activities have now grown from cottage industry and local consumption to commercial production for international markets. The handicraft artisans, generally, belong to the low income bracket and comprise rural youth, and for the large part women, who engage in handicraft production to supplement household income.

Kenyan handicrafts consist of textile and non-textile items.

Textile crafts include beaded jewellery, basketry, leather works and weaving of clothing with local fabrics. Non textile handicrafts consist of wooden and soapstone carvings, metal works and art works. These artisanal products have their special nature and distinctive appeal, which could be utilitarian, aesthetic, creative, decorative, functional and culturally, religiously and socially symbolic and significant. According to the Export Promotion Council (2007), the cultural appeal has remained one of the strongest international marketing gimmicks. In fact, one of the important aspects of Kenyan culture is the arts and artefacts that are crafted manually by different ethnic groups. Each tribe has a unique expertise passed along the lineage. The products, which are handmade, identify the various handicraft traditions in the country.

It is evident that handicraft production makes a significant contribution to Kenyan national economy. The art and craft business in Kenya contributes about KES 6 billion to the national economy and has created many jobs for rural women and the urban poor (Mukami, 2012). Statistics from the Kenyan Ministry of Trade indicate that export earnings from commercial handicrafts have seen a steady increase over the years, with sales growing from KES 556 million in 2004 to KES 580 million in 2006 and to KES 620 million in 2009. This underscores the growing importance of the SME sector and the handicraft production in particular. Records from the Export Promotion Council (EPC) indicate that as at April 2009, a total of 315 commercial craft companies were found in Kenya. The export side of the handicraft sector is generally urban oriented with many middlemen and only few producers engage directly in export trade. Most handicraft export traders work closely with NonGovernmental Organisations and with Government through the Ministry of Trade.

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The main markets for Kenya handicrafts are found in the USA, Europe, Japan and the Middle East.

Historical background of Namayiana Namayiana is a cooperative group of indigenous Maasai women artisans registered under the Ministry of Social Services in Kenya. They are located in a semi-arid area in the Ngong Division of the Kajiado North District of Kenya.

Namayiana was founded in 1990 with the fusion of two women’s self-help groups namely: Nkanyuak and Enkerai. These two groups were formed in the mid-1980s with the aim of promoting the education of their children and contributing to the development of their community through beadwork. The process of merging the two groups was led by the Mennonite Central Committee (MCC) Kenya. The MCC built the capacity of this newly formed group, which was then known as “Nkanyuak and Enkerai Women Group”, to produce beaded products in commercial quantities. They provided the group with the initial raw materials and brought in a volunteer from Canada to help them with product development.

In 1995, the group changed its name to Namayiana, which means blessed in the Maasai language.

The name was carefully selected to reflect the achievements and success story of the group between 1990 and 1995. As a matter of fact, Namayiana procured a piece of land in 1995 for the construction of a centre that would host their offices, stores and for future development projects. During this same period, they purchased a truck for the transportation of their products. These were great achievements for a women’s self-help group that had struggled over the years to improve the living conditions of their members and to step up development in their communities. The group considered itself as so fortunate and so blessed, hence the name Namayiana.

In 2001, Namayiana was officially registered as a self-help group with 112 members.

Two years later that is in 2003, the group obtained a grant of USD 3,500 from USAID 6

for the construction of a building on their piece land to provide an office space, a show room and a meeting place.

The MCC’s support to Namayiana came to an end in the early 2000s. Namayiana was, however, able to sustain their production and marketing operations until late 2000s when they started experiencing serious difficulties. Orders were no longer forth coming and they were confronted with cash flow challenges. Sales volumes were declining and they needed to build and expand their customer base. They were in dire need of financial support to attend exhibitions and trade fares in Europe, Asia and US. In 2009, Namayiana benefited from a grant of USD 3000 from Shared Interest Foundation to attend the African Days Vienna Exhibitions. This marked the beginning of Shared Interest’s support relationship with Namayiana. Through Shared Interest support system, Namayiana has become a major actor in the development process of their community. Their activities continue to impact positively on the livelihood of many women and children in the community. Indeed, Namayiana has been and continue to be a total blessing to the Maasai community in the Ngong Hills of Kenya.

Review of business and commercial performance of Namayiana (2008 to 2014) There has been a steady increase in the commercial performance of Namayiana since Shared Interest intervention in 2009. Prior to this intervention, Namayiana’s sales were low due to scarcity of commercial orders and their inability to attend various international fares. Their major challenge was the lack of financial support to attend international fares. They were faced with cash flow constraints as there were drastic reductions in their commercial orders. One of the project managers of Namayiana, Leah Tipina, noted that, the late 2000s were trying moments for the group. She stated that attending international fares was the only way they could make good sales and network with potential customers but they did not have the resources to finance the trips. They, therefore, had no other alternative than to resort to local sales, which were not encouraging due to low prices. She further submitted that the intervention of Shared Interest Foundation with a grant in 2009 brought a sigh of relief to the entire group; this singular act had rescued the group and brought back hope to the producers and their families. With this grant Namayiana was able to 7

attend the 2009 Vienna fare in Austria and the outcome was great. The sales volume at the fare was estimated at 120 kgs comprising a variety items such as beautiful beaded necklaces, bracelets, earrings and dog collars of different specifications and designs. The total sales realised at the exhibition was KES 700,000. In fact, Namayiana’s participation in the 2009 Vienna Fare brought an increase in their sales value from USD 24,000 in 2008 to USD 33,000 in 2009 representing over 37% growth rate.

Producers’ income got doubled and the group was able to raise three months’ salary for employees as a result of their excellent performance at the fare. Through effective networking at the Vienna Fare, Namayiana got new customers and the export business kicked off once more, bringing joy to the Namayiana community of producers.

Inspired by the achievements of Namayiana at the Vienna fare in 2009, Shared Interest Society granted the group an Export Credit (EC) of USD 10,000 and a Term Loan (TL) of USD 9,000 to attend the 2010 African Days Vienna Exhibition. Namayiana drew USD 6,500 from the term loan to cover the travel expenses but declined to take the balance of USD 2,500, which was supposed to go into stock procurement. This was due to the fact that the Vienna exhibition was a huge success and Namayiana could finance the purchase of their stock with the proceeds from the fare. In fact, they sold all their products and at very good prices and made very good profits. They received an overwhelming interest in their products and numerous visitors at their stand. Buyers were particularly impressed by the fact that they could buy Maasai beaded products directly from the women who made them rather than from middle-men. Their total sales stood at USD 16,812, which exceeded the maximum sales target of USD 15,000 set for the event. They made a surplus income of USD 7,257 and this was shared to members of the group. In addition, Namayiana got many more new buyers at the exhibition and secured a good number of orders. They finally got their feet back into the export business once again after several years of latency characterised by low sales, scarcity of orders and financial constraints.

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The sales value of Namayiana grew from USD 33,000 in 2009 to USD 40,000 in 2010 representing 21% growth rate within a year. The growth in sales was attributed to the participation of the group in the 2010 Vienna Exhibition, which provided them the opportunity to make good returns on their beaded products.

The impact of the 2010 African Days Vienna Exhibition on the sales and revenue streams of Namayiana was so great that the group could not help but to apply for another Term Loan of USD 7,500 from Shared Interest Society to attend the same event in 2011. The facility was granted and Namayiana made it once more to the Vienna Exhibition in June 2011.Their participation in this event for the third consecutive time enabled them to strengthen business relationships with prospective customers and to build confidence with buyers and clients. They received the much needed exposure, learnt about new designs and developed new businesses. They also sold important volumes of beaded products and earned extra income for their members. The sales value of the group went up from USD 40,000 in 2010 to USD 41,000, an improvement over the previous year’s performance. This was indicative of the fact that Namayiana was gaining more grounds, broadening their customer base and expanding their market by their regular attendance at the exhibitions. They purchased some building materials towards the construction of a guest house and a conference centre on their premises with part of the extra income made at the exhibition. Graph 1 shows the performance of Namayiana in terms of sales from 2008 to 2014.

Graph 1: Sales value of Namayiana from 2008 to 2014

Sales (USD) 45,000 40,000 35,000 30,000 25,000 Sales (USD)

20,000 15,000

10,000 5,000 0 2008

2009

2010

2011

2012

2013

2014

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Graph 1 clearly shows a steady increase in the sales value of Namayiana since the intervention of Shared Interest in 2009. The sales have increased from USD 24,000 in 2008 to USD 41,000 in 2011. This performance has been the highest ever in the history of Namayiana. As already indicated, the steady rise in sales was a direct result of Namayiana’s attendance to international fares financed by Shared Interest.

However, in 2012 there was a sharp decline in sales from USD 41,000 to USD 32,000. This is explained by the fact that, in 2012 Namayiana did not attend any international fares, which in previous years contributed to increase sales and to create new commercial opportunities. Moreso, business was slower than previous years for Namayiana in 2012 due to the increase in cost of materials such as leather and beads. This affected their sales as they had to adjust their prices with their buyers.

Namayiana decided not to participate in international exhibitions in 2012 in order to take a break to focus on new product development, improve the quality of their designs and build a sufficient stock level, especially given that the prices of raw materials kept rising at an alarming rate. The decision was, therefore, strategic for the sustainability of their business. In order to replenish their stock of raw materials, Namayiana once again requested for the support of Shared Interest. Determined to support Namayiana in their struggle to improve the livelihood of their members and their household and to contribute to the transformation of the Maasai community in Ngong, Shared Interest granted a new Term Loan of USD 9,500 to Namayiana in April 2012.

The facility was used to purchase the necessary materials to build a sufficient stock level just as prices started to rise. These materials included

beads,

leather,

wire,

buckles and thread. They were procured when prices were still favourable and Namayiana made good savings out of bulk purchase discount. The subsequent years saw a sharp rise in prices of raw materials but 10

Namayiana was able to sustain production for export, thanks to the availability of a good stock secured in 2012 with Shared Interest support. While explaining this, the Chair Lady of Namayiana, Agness Naroma, stated that “the business of Namayiana would have sunk by now, had it not been the financial support from Shared Interest that enabled us to secure a good stock of raw materials when the prices were still much affordable;” she added, “thanks to Shared Interest, today we can smile.”

In 2013, business picked up again. The sales value of the group grew from USD 32,000 in 2012 to USD 39,000 in 2013 and to USD 41,000 in 2014. The rapid improvement in sales in these two years were a reflection of market expansion, good networking and the broadening of Namayiana customer base, which were achieved in the previous years through their attendance at the international exhibitions financed by Shared Interest. Additionally, the availability of a good stock of raw materials made it easier for Namayiana to supply customers in good time. Buyer confidence was restored as Namayiana was able to prove their ability to deliver orders on a timely basis and with good quality products.

Besides financing exhibitions and the purchase of raw materials, Shared Interest has also supported Namayiana to improve their working environment by granting a facility for the extension of electricity to their premises and the renovation of two houses in July 2012. The group was offered a one-off opportunity to have electricity installed in an area of Maasai land within the locality of their business.

They, therefore, made an application to Shared Interest for a Term Loan of USD 4,150. The facility was granted and electricity was brought to the doorsteps of Namayiana. For Namayiana, the electrification of their area was a dream come true as they had waited for this opportunity for several years. This was a key step towards the promotion of development in the area. Life has become less stressful and more convenient for members of the community who no longer commute on foot for several hours to have access to some basic services due to lack of electricity in their area. Today, community members and people from surrounding villages are able to charge their mobile phones and have their hair cut at the Namayiana centre.

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More interestingly, the electrification of Namayiana has facilitated the establishment of a clinic on their premises. The clinic, which is the very first and the only one in the community, provides primary health care services to the people of Maasai in the Ngong hills. On daily basis, many women and children trooped to the clinic to access health care at the Namayiana centre.

Though the clinic was established by a private individual, Namayiana provided the building, which made it possible to have the service available to members of the community. Clearly, Shared Interest support has enabled Namayiana to reposition themselves as a major actor in the development process of the community. As the Chair Lady rightly put it “Shared Interest has helped us bring development to the people of Maasai living in the Gong hills�.

Side view of the Namayiana clinic

The latest intervention of Shared Interest was in 2014 with a Term Loan of USD 12,000 approved for Namayiana to complete the construction of a guest house and a conference centre, which they started in 2012. Work on the building got stalled along the line due to lack of funds. Considering the economic importance of the guest house/conference centre project and its impact on the development of the community, Shared Interest granted the facility and this enabled Namayiana to complete the building. The building, which is by far the only outstanding one in the 12

community, has given a face lift to the general landscape of the area to the admiration of community members as well as visitors. The Assistant Project Manager of Namayiana remarked that “the building is indeed the pride of the community.�

Guest house/conference centre put up by Namayiana with financial support from Shared Interest

The building is yet to become operational; there are finishing touches such as furnishing and interior decorations to be done to get it fully ready for use. The conference centre will serve as a venue for meetings and other social events and the guest house will provide accommodation for visitors. The guest house is expected to create more attraction to the area and expose the community to development. The move by Shared Interest to support Namayiana to complete the building is, therefore, regarded as a major milestone in the development process of the community. The guest house and conference centre will provide extra income to Namayiana and improve their cash flow.

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Social Impact A mini survey was carried out to ascertain the impact of Shared Interest support to Namayiana on the livelihood of individual members of the group and their households. The survey was complemented by household visits and individual interviews. A total of 15 producers of Namayiana took part in the survey. The majority of them (33%) were aged between 41 and 50 years. They were all married women and all but one, have been with Namayiana for over 10 years. The survey results indicated that 60% of the producers had no formal education but are highly skilled in handicraft production. The results further revealed that 67% of them had on the average 5 dependants.

All the producers of Namayiana have been able to purchase a piece of land and have put up their own homes. None of them is living in rented premises. All the 15 respondents stated that they have been able to build their own houses out of the income they realised from the handicraft production business. They further submitted that their income level has improved significantly over the past 5 years.

From the survey results, 73% of the respondents noted that before Shared Interest interventions, their average monthly income was below KES 1000. It was hard for them to meet their survival needs. There were no orders from international buyers so their products were sold locally and at very low prices. The producers further explained that with the coming on board of Shared Interest, Namayiana have started attending international fares and this brought a great change in their income level.

The majority of the respondents (80%) now earn on the average KES 4,000 per month and none of them earns below KES 1,500 per month. All the 15 respondents indicated that the improvement in their income was as a result of the financial support from Shared Interest that enabled Namayiana to attend international exhibitions where their products were bought at much higher prices. Graph 2 shows the average monthly income of producers of Namayiana before and after Shared Interest’s interventions.

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Graph 2: Average monthly income of producers of Namayiana before and after Shared Interest interventions.

Average monthly income (KES) 4500 4000 3500 3000 2500 2000 1500 1000 500 0

4000

Average monthly income (KES) 700

Before S.I

After S.I

The average monthly income was KES 700 per month between 2007 and 2009.

From 2009, it has seen a gradual increase and it is now at KES 4,000 per month representing 471% growth rate over a period of 5 years.

One of the major impacts of Namayiana over the period has been their investment in the education of their children. All the respondents who took part in the survey indicated that the biggest proportion of their income has been spent on the education of their children.

It is interesting to note that though most of these producers were illiterate, they understood the value of education and have invested a lot to see their children through the educational ladder. Most of them have their children in the universities and secondary schools across the country. Marisa Parsitau, a 64 year old producer of Namayiana pointed out that “by supporting Namayiana, Shared Interest was simply helping us send our children to school and to provide for their educational needs�.

Namayiana has in all 112 producers and each of these producers employs on the average 3 casual workers anytime the group gets orders. This goes without saying that Shared Interest’s support does not only impact the 112 producers but also 336 casual workers averagely. An examination of the survey results shows that each producer has on the average 5 dependants, which also implies that the improvement 15

in income experienced by producers has equally impacted on the livelihood of their dependants.

The direct beneficiaries of Shared Interest interventions are, therefore, 112 producers, 336 casual workers and 6 permanent employees making a total of 454 individual households; together with their dependants, we can confidently say that each level of support provided to Namayiana has gone a long way to improve the livelihood of over 2,270 individuals in the Oloshibor Kimuka community in the Ngong hills of Kenya.

Employees have also seen an improvement in their monthly remunerations. The average monthly salary has increased from KES 60,000 in 2008 to KES 90,000 in 2015, representing 50% growth rate. According to Leah Tipina, the Assistant Project Manager, payment of employees’ monthly salaries was very challenging in the late 2000s due to cash flow constraints. She further submitted that since the intervention of Shared Interest, there have been great improvements in the cash flow of the group; since then, salaries have been paid regularly and on timely basis. Graph 3 shows the average monthly salary of employees of Namayiana from 2008 to 2014.

Graph 3: Average monthly salaries of employees of Namayiana from 2008 to 2014

Average monthly salary (KES) 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0

Average monthly salary (KES)

2008

2009

2010

2011

2012

2013

2014

Graph 3 shows a steady improvement in salaries of employees from 2009 to 2012.

From 2012, there haven’t been any increases. The Assistant Project Manager 16

indicated that this was not due to cash flow problems but Management has just not taken the decision to do so. She, however, noted that an increase was being considered and this would be effected before the end of 2015.

Namayiana has limited their membership to 112 in order to maintain a high level of discipline and ensure effective supervision when orders are received. However, they have helped other community members to form similar groups and have provided them with the required training for them to function effectively and make income from handicraft production. So far, four of such groups have been established with the assistance of Namayiana. Each of these groups has on the average 45 members and they are equally doing well. These are the multiplier effects of Shared Interest financial assistance to Namayiana. Namayiana has survived and now they are helping others to also stand on their feet and to join the struggle to bring development to their community.

Food distribution has also been one area of intervention of Namayiana in the Oloshibor Kimuka community. The Ngong hills where the Oloshibor Kimuka community is located experiences prolong drought, which usually leads to acute shortage of food items for the population. In such hard times, the community always looks upto to Namayiana for an intervention.

By attending international fares, Namayiana has succeeded in building a very broad customer base in Europe, Asia and in the United States. They normally fall on these customers for assistance when the very survival of the community is threatened by food shortage.

Owing to the goodwill that the group has with their clients, many of them come to the aid of the community by donating food items and sometimes cash, anytime Namayiana calls on them. They do distribute items such as maize, beans, sugar, potatoes and oil to help alleviate the sufferings of the people. Again Namayiana acknowledges the fact that without Shared Interest’s financial backings, they wouldn’t have been able to build such a wide net of relationships. The Assistant Project Manager clearly noted that they got to build trust and goodwill with these customers helping them today at the international fares financed by Shared Interest through Term Loans. She stated that: “if the community is alive today, we owe it all to Shared Interest and their investors; we pray that wherever they are, the 17

Almighty God should continue to sustain them so that they could continue the good work they are doing for humanity.�

The story of Joyce Moita, a 77 year old producer of Namayiana was particularly interesting and worth sharing.

Joyce has 9 children and 25 grand-children. She has been with Namayiana since the group was established in 1990.

She is the best bead designer of the group and was in charge of the Namayiana centre three years ago. She stated that before Shared Interest intervention in 2009, her monthly income from bead making was KES 400 averagely. During a visit to her at home, she happily informed us that her income has improved tremendously from KES 400 to KES 5,000 since Shared Interest has started supporting them to send their products to international fares; she invested her income in the education of her children. One of them has completed his university education and he is now in employment with World Vision. Joyce took us round her compound to show us three different structures, which according to her better tell her story and provide evidence that her life has improved through Shared Interest support to Namayiana.

The first home of Joyce before joining Namayiana

This was the first structure in which she was living before joining Namayiana in 1990.

The structure was built with mud; the interior was poorly lit with no ventilation. Few years after joining Namayiana, she was able to raise some income to buy iron sheet for the construction of a new home.

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The improved home of Joyce after joining Namayiana

She further submitted that with Shared Interest interventions, Namayiana got regular orders and attended several international fares, which resulted in increase in her income level. From her savings and with the support of her son in whose education she has invested over the years, she is now living in a beautiful house.

The current home of Joyce following Shared Interest interventions

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Conclusion For the past six years Shared Interest has journeyed with Namayiana with the main objective of helping the group grow their business and improve the livelihood of their members and step up development in their community. A review of Namayiana’s performance over the period shows great improvements in both commercial and social impact indicators. Namayiana has been able to expand their business by broadening their customer base; they have provided market access to their members and this has led to increase in their income level and improvement of their living standards. They are currently undertaking other commercially viable projects, which would further bring development to the community and improve the cash flow of the group. Shared Interest’s support has indeed brought change to Namayiana and this is what the organisation stands for.

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