Empowered women, sustainable communities

Empowered women, sustainable communities

REPUBLIC OF KENYA

THE COUNTY GOVERNMENT OF VIHIGADEPARTMENT OF INDUSTRIALIZATION, TRADE & TOURISMPOLICY ON

VIHIGA COUNTY COMMUNITY EMPOWERMENT FUND 2014APRIL, 2014

TABLE OF CONTENTSiiiFOREWORD

vACRONYMSi

1SECTION ONE

11.0 Overview of the policy

11.1 Context of the policy

1.2 Unique challenges facing the Communities in Vihiga County131.3 Strategies to address these problems

31.4 Justification for the establishment of the Fund

31.4.1 Devolved Funds

41.4.2 Effective and Efficient utilization of devolved funds

41.4.3 Easy access of capital

41.5 Beneficiaries requirements

51.6 Vision and Mission

51.7 Core Values

6SECTION TWO

62.0. Purpose of Vihiga County Community empowerment fund policy

62.1 Mandate of the fund

9SECTION THREE

93.0 Policy implementation

93.1.1 The mandate of the Vihiga County Empowerment Fund Board.

103.2 Chief Executive Officer (CEO) Fund Administrator

103.2.1Responsibilities

103.3 Vihiga County Community Empowerment Ward Fund Committee (WWFC)

113.3.1 Guidelines for nomination of the Commmuinity Empowerment Fund Committee

113.3.2 The mandate of the Community Empowerment Ward Fund Committee

113.4 Quorum for all meetings

123.5 Responsibilities of the subcounty Administrators

123.6 Fund officer

123.6.2 Responsibilities of Fund officers

133.7 Community Empowerment Ward Support Centres

134.0 Loan disbursement guidelines

134.1 Loan Issuance

134.2 Source of Fund

134.2.1 Other sources of funds

144.3 Non Loan Products

144.4 Loan products

144.4.1 Community Empowerment Funding (Group Funding) tujiinue

144.4.2 Facilities/Equipment funding vifaa

144.4.3 Top up loans jazia

154.4.4 LPO Financing

154.4.5 Special loans imarisha

154.5. Policy incentives, benefits, remedial action and sanctions

154.5.1 Incentives

164.5.2 Benefits

164.5.3 Remedial action.

164.5.4 Sanctions

164.6 Pre-Loan disbursement services

164.7 Post loan disbursement services

174.8 Loan recovery strategies

18SECTION FIVE

185.0 Reporting requirements

185.1 Reporting structures

185.1.1 County level

185.1.2 Sub County level

185.1.3 Ward level

19SECTION SIX

196.0 Monitoring & Evaluation

6.1 Policy Review................................................................................................................. 1920SECTION SEVEN

7.0 Reports of the Fund............................................................................................................20SECTION EIGHT

208.0 Dispute Resolutions.

SECTION NINE 9.0 Winding up of the Fund................................................................................................................21RECOMMENDATIONS

THE SCHEDULE22ForewordThis policy is a first step towards the establishment of a Community Empowerment Fund for Vihiga County to benefit both existing and potential traders Women, youths, men and the physically challenged persons in Vihiga County). Social and Economic challenges have driven our men,women and Youths into deep poverty and increasing their vulnerability to social ills such as prostitution, early pregnancies/early marriages, drug abuse and theft. Vihiga County has a responsibility to give these marginalized groups means to livelihoods and wealth creation because doing so has greater societal benefits.

An empowered Community is able to contribute to socio-economic stability at both the family and community levels. They can make decisions on proper utilization of family income, community and county resources. It is therefore, prudent to empower our men,women, youths and the physically challenged persons to realize shared socio-economic development.

Executed by:Executed by:Hon. ..

Hon.County Executive Member

County Executive Member,Industrialization, Trade & Tourism

County Treasury,County Government of Vihiga

County Government of Vihiga

ACRONYMS

A.I.A Appropriation in Aid

A.I.E Authority to Incur Expenditure

AIDS Acquired Immune Deficiency Syndrome

VICOCEF Vihiga County Community Empowerment Fund

C.E.O Chief Executive Officer

CCRB-County Credit Reference Bureau

CEC

County Executive Committee

CCEFB-County Community Empowerment Fund Board

ESF

Economic Stimulus Funds

H.I.V Human Immunodeficiency Virus

ICT

Information Communication Technology

JLB

Joint Loans Board

KRA -

Kenya Revenue Authority

LPO

Local Purchase Order

MCA Member of County Assembly

MDG Millennium Development Goal

PEF

Poverty Eradication Fund

PIN -

Personal Identification Number

SACCO Saving and Credit Cooperatives

VICOCEFWC- Vihiga County Empowerment Fund Ward Committees.SECTION ONE1.0 Overview of the policyThe policy has been formulated in response to the unique challenges and gender-related constraints facing the small scale traders (men, women, Youths and the Physically Challenged Persons) of Vihiga County. Population increase has led to sub division of land leading to diminishing value of agrarian systems in the County. In this respect, alternative methods to sustain the Marginalised groups initiatives in the County have to be explored. Empowering the community is a sure way to guarantee prosperity and sustainability in community development.

1.1 Context of the policyThe Kenyan economy is liberal, which supports growth resulting from a better allocation of resources in the economy, exchange of knowledge, transfer of technologies and a consequent increase in productivity, as well as the development of human and physical capital. It is within this context that the County Government of Vihiga formulated this specific policy, targeting Community empowerment and promoting them in decision making. In addition, it addresses unique challenges affecting men, women, youths and the physically challenged in Vihiga County, as well as providing a road map to shared prosperity for all in the County, irrespective of religion, culture, social status, disability or marital status.The fund aims at giving the marginalised groups an opportunity to apply their entrepreneurial skills to initiate and develop successful and sustainable activities that help in addressing wealth creation giving them power to make decisions.

1.2 Unique challenges facing Marginalised groups in Vihiga County Women are economically marginalized in property ownership and leadership. High illiteracy among Men, Women, Youths and Physically challenged persons

Negative attitude towards entrepreneurship

High rate of school drop outs. Low access to information. Inadequate market linkages for traders due to poor infrastructure. Less men, women, youths and disabled friendly training institutions in some subcounties.

Low entrepreneurial culture among men, women and youths due to low self-esteem and negative attitude

Rising cases of commercial sex in villages, urban areas and along the highway. Untapped talents in sports and performing arts. Drug abuse among men, women and youths. Lower percentage access to credit facility by youth and women. Early pregnancies. Stereotypes. 1.3 Strategies to address these problems To introduce a revolving fund to empower the marginalized groups economically. Capacity building programmes should involve;- Life and vocational skills.- ICT management. - Financial management skills.- Entrepreneurship.- Value addition in agricultural produce.- Reproductive health on family planning and HIV/AIDs. Provide civic education to enlighten Marginalized Groups on their constitutional rights. Incubation Programmes. Create awareness on adult education. Organize market trade fairs, producer value chains, exhibitions and enhance market linkages through organized channels.

Establish information centers at ward level.

Organize benchmarking exchange programmes locally, nationally and internationally. Design modalities to enable persons with disabilities access market and other amenities Establish rehabilitation centers for drug addicts at county level. Establish talent academies to nurture sports and performing arts. 1.4 Justification for the establishment of the Fund 1.4.1 Devolved Funds

The policy is premised on section 116 of the Public Finance and Management Act, Section 265 to 268 of the Public Finance Management Regulations 2013 and the Vihiga County Community Empowerment Act of 2014.All the reforms contained in this policy are anchored in the Bill of Rights contained in the Constitution of Kenya. The Constitution makes provision for the Kenyan people on Empowerment.

More specifically:-

Article 10. (1) The national values and principles of governance are binding on all State organs, State officers, public officers and all persons.

Whenever any of them

(a) applies or interprets this Constitution;

(b) enacts, applies or interprets any law; or

(c) makes or implements public policy decisions.

The state or the County Government shall give priority to factoring in access to vulnerable groups or individuals (women, persons with disabilities, Children, Youth, members of marginalized and minority groups).

Articles 201 (a), d and ( e) 226 and 227 have provisions on public Finance relating to transparency , accountability, and appropriate governance of public monies. 1.4.2 Effective and Efficient utilization of devolved funds

To ensure effective and efficient utilization of devolved funds, prudent implementation structures and harmonized efforts, clear targeting of community activities/ initiatives is key in enhancing ownership and sustainability of activities.However, majority of Marginalized groups in the county have been unable to access these funds due to limited capacity building programmes, lengthy processing procedures, insufficient men, women and youth friendly products and lack of entrepreneurial culture among the marginalized groups.1.4.3 Establishmenta.) Revolving Fund

There is need for establishment of a revolving fund to support local Community development initiatives. It has a component of capacity building to enable the local Community invest and grow the fund.b.) Disbursement of Funds

Funds will be disbursed subject to the terms and conditions of the fund. 1.4.4 Mandate The mandate of the fund will be to increase access to capital by existing and potential entrepreneurs, to provide business development services, facilitate linkages and supply chains, create market opportunities locally and abroad for products and services of Local Communities enterprises and facilitate creation of commercial infrastructure to support growth of Community businesses. It will focus on expanding opportunities for men, youth and women to contribute to socio-economic development of the county. It is against this background that The County Government of Vihiga formulates a policy on Vihiga County Community Empowerment Fund (VICOCEF). The fund will also partner with other financial institutions for loan progression.The fund will help in forming loan recovering groups from beneficiaries. The loan beneficiaries shall form loan recovery teams amongst themselves through

MOUs. 1.5 General requirements

The beneficiaries will be required to meet the following conditions;

Should be residents of Vihiga County, Aged above 18 years doing small scale business in the County,

Youths aged between 18yrs and 35years,

Kenyan physically challenged persons,

Small scale traders

Potential entrepreneurs with viable business proposals. Must be registered by a government recognized registration body.

Groups must have been in existence for at least 2 months from time of registration.

Operate within the ward in which they are applying. Should undergo pre- disbursement training. Have good credit history and viable business ideas.

Individual women and youths to be guaranteed by at least 4 group members. Must be appraised.

Beneficiaries to have bank accounts.

The county Government shall issue certificate of registration to beneficiaries.

They must be engaging themselves in legal business.

1.6 Vision and Mission VisionTo be a model fund in empowering communities in Vihiga to create wealth. Mission Offer accessible and affordable credit facilities that promote appropriate entrepreneurship and sustainable enterprises.1.7 Core Values of the FundThe fund will be governed by the following values; Transparency and accountability

Inclusiveness Continuous improvements

Equity

Fairness

Integrity Impartiality

Honesty SECTION TWO

2.0. THE FUND AND BANK ACCOUNTS

This policy seeks to establish a fund for Vihiga County Government which shall be named Vihiga County Community Empowerment Fund (VICOCEF);The fund shall, unless decided otherwise by the County Executive Committee Members, be managed from the department of the County Government responsible for matters of Industrialization, Trade and Tourism;The fund shall be revolving;The Fund shall have an office with a prominent label in capital letters on the door or the outer wall marked VIHIGA COUNTY COMMUNITY EMPOWERMENT FUND (VICOCEF). At the County Headquarters.At the fund office shall permanently be kept a metal box sufficient to receive and hold a reasonable quantity of written suggestions labeled in capital letters with the words VIHIGA COUNTY COMMUNITY EMPOWERMENT FUND (VICOCEF) SUGGESTION BOX

The Suggestion Box shall be opened on every date of the County meetings and complaints received through the box be dealt with as disputes in accordance with the provisions of this policy.

2.2 The fund Account

There shall be opened a bank account to which there shall be deposited in the fund account:a. Monies allocated to the fund through the annual County Government budget as approved by the County Assembly,

b. Monies paid to the fund by partners and other interested persons or well wishers,

c. Loans recoveries together with administrative costs,

d. All other monies lawfully due to the account,

e. Any other monies acquired for the purpose of this Fund.

2.3All monies paid to or received on behalf of the fund shall be deposited in a savings account to be opened with the approval of the County Executive Committee Members in the name of the fund in a reputable banking institution operating within the County

2.4No monies shall be withdrawn from or paid directly out of the fund account except by way of transfer to a current operation account to be opened with the approval of the County Executive Committee Member in Charge Industrialization, Trade and Tourism in the name of the fund.

2.5The Committee shall recommend to the County Executive the banking institutions with which to operate the accounts and the signatories to the accounts;

2.6 The fund and the bank accounts shall be managed by the Committee in accordance with the provisions of the Public Finance Management Act.

All The accounts shall be managed at the County level;2.7MANDATE OF THE FUND The mandate of VICOCEF fund will be to:- Provide loans and non-loan products

Promote entrepreneurship among the marginalized groups Source finances from the County Government of Vihiga, development partners and other stakeholders.

Share knowledge and resources within the communities in the county and outside. Seek to create awareness on available markets for surplus produce and linkages to these markets.

Enhance development of business supply chains and market linkages.2.8 STRATEGIC OBJECTIVES OF THE FUNDThe strategic objectives of the fund will be to; Establish a revolving fund that will be accessed by the Marginalized groups. Develop an entrepreneurial capacity for the Vihiga County Community , Provide loan and non-loan products to qualified groups for income generating activities. Establish an interactive web site where relevant information can be shared.

Support exhibitions and provision of space where the beneficiaries can market their products locally regionally and internationally. Enhance conducive business environment for small- scale entrepreneurs investments.

Promote joint ventures and consortia among men, women, youths and physically challenged persons owned enterprises.

Facilitate men, women and youths enterprises to access government procurement opportunities.

Establishment of ward support resource Centers for the marginalized groups.SECTION THREE

3.0 POLICY IMPLEMENTATIONThe policy will be implemented through a transparent and accountable system composed of committees comprising people of integrity as stipulated in chapter six of the constitution of Kenya. The membership to the committees will be broad and widely representative of communities within the county. 3.1 COUNTY COMMUNITY EMPOWERMENT FUND BOARD (CCFB)There shall be established a board to be in charge of the fund operations at the county level. It shall be managed and implemented by a Chief Officer answerable to the County Executive Committee Member in charge of Industrialization, Trade and Tourism. The board shall have a Chairman. The Chief Officer of the Industrialization, Trade and Tourism will be the secretary and the Administrator of the Fund.The members will serve for two consecutive terms of Two years each and they shall be holding their meetings quarterly in a year. The board shall comprise of seven members from the following sectors within the County:

1. A woman;2. Faith Based Organizations 1;3. Community Representative 1 ;4. A Representative of Business Community 1;

5. Youth Representative 1,6. Persons with disability 1.7. Chief Officer in charge of Industrialization, Trade and Tourism.The board shall be appointed by the County Executive Member in charge of Industrialization, Trade and Tourism. 3.1.1 The mandate of the Vihiga County Community Empowerment Fund Board. The County Community Empowerment Fund Board will;

Facilitate administration of the fund and carry out executive functions in connection with the fund. Advise the loan authorities in accordance with the policy guidelines issued by the County Executive Committee Member in charge of Industrialization, Trade and Tourism Advice and report to the County Executive Member of Industrialization, Trade and Tourism on matters relating to the fund. Maintain loan status record presented for approval.

Enter into agreement with other corporate bodies.

Ensure equity and fairness in allocation of loan and non-loan products to groups in the county.

Be involved in reviewing performance of the fund. Establish a reward system for groups that are paying promptly. Approve all disbursement of the fund.

Handling human resource issues such as hiring, remuneration and discipline in case of non performance. 3.2 ADMINISTRATOR OF THE FUND (CEO)The Fund Administrator Shall be the Chief Officer in charge of Industrialization, Trade and Tourism..

3.2.2 Responsibilities

They will include:

Custodian of the fund, assets and liabilities. The accounting officer. Implement the fund policy. Carry out administrative and managerial roles. Publicizing the fund. Prepare county loans status report.

Secretary to the board.

3.3 COMMUNITY EMPOWERMENT WARD FUND COMMITTEE (CEWAFCO)There shall be Community Empowerment Ward Fund Committee comprising 7 members as following:1. Sub County Administrator -Secretary

2. Ward Administrator ( Fund Officer) 3. Women Representative 1 Member

4. Community Representative - 1 Member

5. Physically Challenged Persons Representative 1 member6. Youth Representative 1 member7. Faith Based Organization 1 member. 3.3.1 Guidelines for nomination of the Community Empowerment Ward Fund

Committee

The Committee members shall be identified by the ward administrator in consultation with the Elected County Assembly Member for the respective wards. The nominated names shall be forwarded to the Chief Officer for Industrialization, Trade and Tourism for approval to be appointed by the County Executive Member in charge of Industrialization, Trade and Tourism. During the first sitting, the committee shall elect the chairperson from among the committee members. The secretary shall be the Sub- County administrator.

The fund Shall have a Fund officer who shall be the ward administrator;

3.3.2 The mandate of the Community Empowerment Ward Fund Committee

To popularize the fund.

Receive applications from interested groups and individuals

Visit, guide and vet applications of groups and individual enterprises.

Monitoring and evaluation of the progress of the fund and report to the county board. Use proposal appraisal format that lends transparency and objectivity Enforcing repayment of loans from the beneficiaries.

Reinforce through their actions the concept of joint and individual responsibility among group members.

Hold quarterly meetings or as need arises.

Develop tools to guide group transformation.

3.4 QUORUM FOR ALL MEETINGS

The quorum shall be two thirds membership in all board and ward committee meetings.3.5 RESPONSIBILITIES OF THE SUBCOUNTY ADMINISTRATOR There shall be a Sub- County Administrator responsible for; Preparing subcounty reports on loan status Appraising performance of the fund.

Advise on fair and equitable distribution of the fund.

Monitoring of the fund officers.

3.6 FUND OFFICERS (Ward Administrators)The fund will engage persons of high integrity who are committed to the community empowerment fund and serve as Fund Officers at the ward level. He/ she will be answerable to the SubCounty Administrators. 3.6.1 Responsibilities of Fund Officers Ensure continuous and uninterrupted thrift of loan repayments.

Facilitate capacity building of the groups/individuals and actualize the fund. Receive loan application forms.

Tracking performance and preparing reports and loan recovery.

Provide advisory opinions and recommendation to the Ward Empowerment Fund Committee.3.7 WARD SUPPORT CENTRES FOR THE COMMUNITY EMPOWERMENT FUND The office of the Ward Administrator will accommodate the support centres for the Fund. It will be manned by Fund officers. The offices shall provide support to clients seeking information about the fund and business related information. The setting up of the centre in the ward shall be vested in the hands of the stakeholders and manned by the County Government. SECTION FOUR

4.0 LOAN DISBURSEMENT GUIDELINES4.1 Loan Issuance 1. The loan shall only be issued with approval of the County Community Empowerment Board.

2. 20% of the fund will be used as an administrative cost. This is meant to cater for; a. Allowances for Board and Committee Members;b. Promote Best Practices ;c. Capacity Building and Exchange Programmes;d. Group Rating and Monitoring

e. Facilitating Office Financial Operationsf. Institutional building and improvement 3. There shall be a grace period of two (2) months to the beneficiary groups. 4. The loan shall not attract interest but administrative costs of 5%, except in LPO financing product. 5. Phased funding will be introduced where applicable 6. The fund may from time to time and in response to changes in socio-economic dynamics affecting Community and the marginalized groups review the guidelines.4.2 Source of Fund

The main source of the fund for Vihiga County Community Empowerment Fund (VICOCEF) will be the County Government of Vihiga. 4.2.1 Other sources of funds

Stakeholders should be encouraged to grow the fund through various avenues;

1. Interest from the LPO Financing at 5%;2. Fines and penalties

3. Fund raisings,

4. Donors ,5. Banks and other microfinance institutions

6. Leasing of County Incubation Equipment.

4.3 Non Loan ProductsNon loan products provided will include but not limited to;

Pre-and post loan disbursement trainings

Tools and Equipment that men,youths ,women and physically Challenged persons can use to generate wealth

Agric business products Talent development

Trade fair and exchange programme4.4 Loan products

Loan products provided will include; 4.4.1 Community Empowerment Enterprise Fund (Group Funding) Tujiinue Features: Minimum loan of Ksh 10,000 to Maximum loan limit of Kshs 100,000.

Grace period shall be 2 months.

Maximum repayment period shall be 15 months.

5% administrative fee deducted upfront. Must be registered and have a valid certificate.

Funding will be done to legal and viable projects.

4.4.2 Facilities/Equipment funding VifaaFeatures: Maximum amount of the loan is Ksh.200, 000 upon the fulfillment of the set out criteria. Grace period shall be 2 months.

Repayment period shall be 12 months.

5% administrative fee deducted upfront.

Include provision of equipments and tools green houses, saloon equipment, incubators, sewing machine, farm inputs among others.

It is meant for business expansion.

Women owned projects.

Must have business license/tax compliance where applicable.

Payment will be made to reputable suppliers depending on prevailing market prices.

4.4.3 Top up loans JaziaFeatures

Maximum of 40% of the initial loan to be repaid within the initial loan agreement period.

Must have repaid up to 60% of Tujiinue Loan.

Given to individuals and groups for expansion purposes.

5% Administrative fee deducted upfront.

4.4.4 LPO Financing

Features

Maximum amount of the loan is Ksh. 200, 000 upon the discretion of the committee.

Fund registered enterprises. Fund Women and Youths owned enterprises, groups and companies.

An interest of 5% levied on the LPO.

The committee will vet and appraise all LPO to ensure they come from reputable organizations.

The fund should assist to meet 30% procurement rule Repayment period will be within a period of 3 months with the discretion of the committee. 4.4.5 Special Loans PepeaFeatures Minimum loan amount is Kshs 50,000 and maximum of Ksh. 300,000 Maximum loan amount subject to appraisal of the business idea by the committee.

With a grace period of 2 months.

Finance individuals and groups for asset acquisition and table banking.

Must have a registered business permit/ license and PIN certificate. Has 5% administrative fees deducted upfront. Finance individuals, registered groups and licensed youths, established traders and women owned enterprises

Finance innovative, skill-based and talent-based business ideas such as weaving, basketry, and music recording/performing art, events decoration, baking, outside catering facilities, fireless cookers, and energy saving stoves alternative energy systems among others.

Maximum Repayment period 15 months. 4.5. POLICY INCENTIVES, BENEFITS, REMEDIAL ACTION AND SANCTIONSThis will assist to strengthen the impact and ensure sustainability of the fund to realize meaningful prosperity of the groups activities.The fund will provide for incentives, benefits sanctions and remedial action as follows; 4.5.1 Incentives

These will attract individuals and registered groups to the fund products and include;

Community Information and Education initiatives.

Issuance of fliers posters, brochures and newsletters Highlight on small scale traders success stories

Traders exchange programmes

4.5.2 Benefits These will accrue to compliant beneficiaries who have no default history and shall include;

Certificates of Loan completion.

Recommendation letters.

Certificate of excellence in community development from the County Government, Premiums will be given to best performing beneficiaries.

4.5.3 Remedial action. These will be taken to prevent erosion of the loan portfolio and continuous contamination. The board shall allow the following remedial actions;

Re-schedule the loan

Business development services

Re financing services

4.5.4 SanctionsFor the fund to succeed and benefit as many people as possible, the following sanctions will be taken against defaulters and confirmed briefcased groups;

Recommendation from the Board for possible prosecution, blacklisting, paying stipulated fines or both.

Asset recovery

Certificate of poor credit rating circulated to the Credit Reference Bureau (CRB)4.6 Pre-Loan disbursement services

The applicants of the fund will be required to satisfy the following conditions to qualify for the fund; Vetting of applicants using the standard vetting forms

Appraisal of proposed activities Visits to applicants business sites or homes to verify information

Training of successful applicants. Appraisal of LPO and suppliers.

4.7 Post loan disbursement services

It is a follow-up of pre-loan disbursement for successful beneficiaries and will entail the following;

Establishing a data base of all beneficiaries

Developing a communication network among the loanees Field visits to beneficiaries to check on their progress, motivate and advise

Post-loan trainings based on needs assessment

Highlight on group success stories as motivation to other group owned enterprises

Documenting and sharing best practices

Provide marketing support4.8 Loan recovery strategies

The policy proposes that various agencies be used in this exercise these include: financial institutions, banks, post Office, M-pesa (Lipa na M-pesa Account), Airtel Money and Mobi Bank. A copy of the original bank in slips will be surrendered to the County Officer for issuance of an official receipt.

Serialized loan application forms shall be recommended by the County Board. Establishment of a data base of all loaned groups from this fund and other loaning institutions.

All cheques shall be issued by the board.

The beneficiaries must sign an undertaking to repay the loan. Partner with reputable financial institutions/intermediaries to aid in loan recovery.

Issue certificates of completion to groups and individuals that have completed repayment of their loans.

Penalties will be applied to defaulters as appropriate.

Quarterly loan performance status will be prepared and availed by the county Empowerment fund board to all Ward Administrators. Certificate of excellence in community development from the County Government will be issued to best performing beneficiaries.4.9 Capacity DevelopmentCapacity development is a key feature of the Vihiga County Community Empowerment Fund. Regular training needs assessments will be conducted to help the Board to design tailor made courses that suit the needs of the Marginalised Groups in the County. Exchange programmes be organised to enable the beneficiaries in the County to bench-mark and learn best practices from other Counties and institutions having similar programmes.The fund will endeavour to instil sense of ownership of funded activities among the marginalised groups.

Role models and mentors will regularly be used to coach group entrepreneurs.

SECTION FIVE5.0 Reporting requirementsReporting activities will be to inform the public and stakeholders about the progress of fund. In this regard prompt reporting will be expected at County and ward level.5.1 Reporting structures

The County Community Empowerment Fund Board and the Community Empowerment Ward Fund Committees will ensure that reports are generated and shared at their respective levels.

5.1.1 County levelThe Executive member in charge of Industrialization, Trade & Tourism to be preparing and submitting quarterly reports to the County Executive.The reports will cover among others;

Preliminary pages

Executive summary

Background information

Analysis of Loans and Non loan products issued

Analysis of repayment patterns

Summary of priority products in all wards

List of all defaulters

Recommendations and way forward 5.1.2 Sub County level The secretary of the Community Empowerment Ward Committee report will include;

Loans issued.

Application forms received and processed.

Beneficiaries trained.

Loan repayment status.

Beneficiaries graduating to higher loan products.

Most preferred loan products.

Defaulting groups or individuals.

Measures to improve loan recovery and uptake.

Challenges and proposed solutions.

The secretary of the ward committee will prepare recommendation on defaulters to the board. 5.1.3Ward level

Reporting at the Ward level will be done by the Fund Officers,

The Fund Officers report will include;

Day-to day operations of the fund

Field visits,

Beneficiaries trained per week, Loan forms received,

Loan forms forwarded for processing per month

Challenges if any and possible solutions

Monthly reports to be copied to the office of the Sub County Administrator.SECTION SIX6.0 MONITORING & EVALUATIONMonitoring and evaluation is a vital process to various stakeholders in a project cycle as it tracks the fund from inception to implementation towards the desired objectives.

Monitoring in the context of VICOCEF will involve regular observation, routine information gathering and sharing with stakeholders. The monitoring and evaluation will be carried out by the Board, The Fund Officers and the Committee Members in collaboration with other relevant agencies.

The Board will prepare guidelines for Monitoring and Evaluation of the Fund. The reports will focus on inputs, processes, outputs, outcomes and impact of the fund.

6.1. Policy ReviewThe policy will be reviewed once every two years. However, special reviews can be made as need arises.6.2. RECORDS AND AUDITS OF THE FUND Auditing will be done on the funds records and books of accounts 6.2.1 The registers to be maintained shall contain sufficient details of the Loan applicants, all the contact persons and guarantors of the applicants, the amount of Loan applied for by every applicant, the amounts awarded by the Committee to each beneficiary and the expected year of completion of repayment of the Loan.6.2.2 There shall be kept for the fund a proper and clear financial and accounting, management system every financial year that shall reflect-

(a) All monies voted to the fund by the County Government in its budget.

(b) All monies received by the fund from other partners.

(c) Loan recoveries made and the interests thereon.

(d) Any other monies received by the fund from any other source.(e) All monies approved by the Committee for Loan disbursement to the applicants.

(f) All monies transferred from the fund to the Operation Account.

(g) The total number of beneficiaries and the amount paid to each from the Fund

(h) All other expenditures from the Operation Account.

6.2.3Not later than thirty days after the end of every financial year, the County Executive Committee Member responsible for the County Treasury, shall cause the books of accounts of the Fund to be audited.

SECTION SEVEN

7.0 REPORTS OF THE FUND

7.1 The Administrator of the Fund shall in every three months, prepare and submit to the Board quarterly reports concerning the operation and the status of the fund.

7.1.2Not later than fifteen days after receipt of the quarterly reports from the Fund Manager, the Board shall, at a sitting to be convened, deliberate on the report and adopt it with or without amendments.

7.1.3 Atleast thirty days before the close of every financial year, the Board shall cause to be prepared a consolidated report of the operations of the fund and submit the same to the Governor through the respective County Executive Committee Member.

7.1.4 The Governor shall, after consideration of the report by the County Executive Committee and not later than Thirty days after the close of the financial year, submit the report to the County Assembly.

7.1.5 The records held by the fund shall be accessible to the public and copies may be provided on payment of reasonable fee to be determined by the Board.

SECTION EIGHT

8.0 DISPUTE RESOLUTION

8.1 Where a dispute arises between the beneficiaries to the Fund and the Fund or generally concerning the administration of the Fund, not being a dispute involving third parties over services rendered to the fund-

(a) A report shall be made of the dispute in writing by the aggrieved party to the County Executive Committee meeting on the first day the committee meets after receipt of the report.

(b) The County Executive shall on receipt of the report, proceed to hear and determine the dispute or disputes in case of several expeditiously.

8.2 The County Executive may form a dispute resolution subcommittee for purposes of

Settling disputes arising under this Policy and any decision made by the disputes

Sub Committees shall be binding. 8.3 Any dispute involving the fund which does not fall under the mechanism of resolution provided in this policy shall be resolved through arbitration PROVIDED that the fund shall have the right to appoint one member to the panel charged with the arbitration of the dispute.

8.4 A resolution of any dispute under this Section shall be communicated in writing to the affected persons not later than seven days from the date of the decision.

SECTION NINE 9.0 AMMENDMENTS TO THE POLICY

The Board may, in Consultation with the County Executive Committee amend any instrument under this Policy or make rules and regulations for the implementation of this policy.SECTION TEN

10.0- WINDING UP OF THE FUND

10.1 The fund may be wound up by a resolution of the County Executive Committee.10.2 In every case where winding up of the Fund is sought, a notice shall be sent to the public atleast sixty days prior to a County Executive Committee meeting for winding up and any person with an interest in the Fund who is opposed or is likely to be adversely affected by the decision to wind up the fund may petition the Board.

10.3 A petition to the Board under this policy shall be in the same manner as a petition for redress under the Constitution.

10.4 All assets and liabilities of the fund shall upon winding up, be taken over by the Vihiga County Government. SECTION ELEVEN11.0 RECOMMENDATIONSAfter receiving information on the challenges faced by residents of Vihiga County, the County Cabinet Sub-Committee feels compelled to make the following recommendations:1. The Cabinet adopts and implements the proposed VIHIGA COUNTY COMMUNITY EMPOWERMENT FUND (VICOCEF) policy.

2. County Government should register groups and review the membership.

3. Vihiga County Government should annually allocate at least 5% of its budget towards the fund.

4. Some resources to be set aside for publicity and market fairs.

5. The fund in future should transform into a bank.6. The implementation of the policy shall adhere to budgetary allocation.THE SCHEDULE

FORM 1

APPLICATION FORM FOR INDIVIDUAL LOAN.FORM 2 APPLICATION FORM FOR GROUP LOANS.FORM 3

APPLICATION FORM FOR LOAN TOP UPS.FORM 4 -

APPLICATION FORM FOR SPECIAL LOANS

VICOCEF FUND STRUCTURE

Establishment of the fund

the

Reg

County Executive Committee Member in Charge of Industrialization, Trade and Tourism

CEO-County Community Empowerment Fund Board-Chief Officer

County Gender office

Sub County Administrators

Community Empowerment Ward Fund Committee- Fund Officers

i Policy on Bungoma Women Empowerment FundPage 2