FINAL REPORT - FSD Kenya

are savings in kind (buying and selling animals); saving at home in tins or pots; saving with shop
keepers; and savings in groups (RoSCAs) which is not very common.
In terms of money transfer services, discussions revealed that some of the respondents regularly
receive remittances from relatives working in towns (Nairobi, Garissa, and Mwingi) for school or
colleges fees and for home up keep. Many of them use the Hawillat system, buses and matatus, and to a
small extent individuals sending this money. The Hawillat comes with several names such as Amal
Express, Kaah, Barwargo, Tawakal and Dahabshill and is considered reliable, safe, affordable and with a
personalized service. The only shortcoming of the Hawillat system is that it relies totally on telephone
connectivity which is missing in most parts of Garissa.
Buses, matatus and Land-rovers plying both the Nairobi-Garissa Route and Garissa Balambala route are
the next commonly used method of money transfer in Garissa after the Hawillat system and are
considered to be safe, low-cost and reliable as money is given to those that are trusted and have been
used for a long time. Matatus and Land-rovers are the only means of money transfer between Garissa
and Balambala.
The reasons for non-use of formal financial providers are mainly the absence of financial institutions in
the remote divisions, the long distance to the nearest financial institutions, financial illiteracy and lack
of information and lack of resources to save.
RECOMMENDATIONS FOR GARISSA
1. The general difficulties stemming from climatic conditions and the accompanying natural calamities
including drought and floods make Garissa people quite vulnerable. Garissa is a good target region
for hunger safety net project as every respondent requires further support.
2. One of the major difficulties in establishing any project in Garissa, be it Hunger Safety Net project
or up scaled OVC project is the poor infrastructure, especially roads. The roads, in remote parts of
Garissa are impassable or get easily cut off or washed away by heavy rains making accessibility to
destinations impossible. The only accommodation in areas out of Garissa town is primary schools
or chiefs’ houses. A project should take into account infrastructural difficulties such as the
distances involved, poor roads, poor accommodation facilities and security issues in all areas out of
Garissa town.
3. Similarly without financial institutions operating out of Garissa town, a new project providing
financial services would be a complete innovation, requiring a lot of research on demand for such
services and alternative delivery channels. Posta closed its office in Balambala two years ago and
reasons for this closure would provide an indication of difficulties involved in transferring funds to
such areas. The Hawillat operates well in areas with telephone connectivity and electricity and
investigation of the Hawillat system and how it works should be the starting point for money
transfer services. The use of buses and matatus is common in remote areas and an investigation of
how this works would be important.
4. Respondents require lump sums to pay school fees for children in secondary schools and to buy
school items e.g. uniforms and books for primary school going children. Due to the special nature
of difficulties in Garissa, a direct linkage with the Government for up scaled bursary funds and
assistance would support education in Garissa and improve levels of literacy among children of
HSN and OVC target group.
vi