This archive report was first published on 26 June 2020.
As the COVID-19 pandemic continues to affect low-income families in Nairobi, a community currency initiative is providing a lifeline to those in need.
Launched by the Kenyan Red Cross in partnership with Grassroots Economics and BlockScience, the Sarafu community inclusion currency has seen over 500 people sign up daily to use it for food, soap, and other essentials.
For Jane Mutuku, a 49-year-old mother of six living in the Mukuru Kayaba slum, the Sarafu has been a game-changer. With manual work scarce due to the pandemic, Mutuku has been relying on the community currency to buy food for her family.
"I looked for a job the whole of yesterday, but didn’t get any job. So I decided to use my Sarafu to buy food. I have no food at home," Mutuku said.
Local food store owner Peter Odhiambo has also seen the benefits of the Sarafu. His store is one of over 100 that accept the community currency, which can be exchanged for local currency through established groups.
"I can use the Sarafu to buy goods in the area. For example, if I want to buy rice from the big stores, I buy using Sarafu. For the things that are not available in my community, I turn my Sarafu points into local currency within our established groups," Odhiambo explained.
According to Odhiambo, the shops in the area do around $10,000 worth of business each day using Sarafu.
Developed by Grassroots Economics and BlockScience, the Sarafu was made possible through financial contributions from donors, which are put into a community fund to create and back the community credit.
"One Sarafu is equal to one Kenya shilling. So when we register the community, we are able to give them a token of 400 shillings. Now they are able to purchase basic goods and services within the community. This Sarafu is able to multiply if they are engaged in income-generating activities or even their businesses," said Roy Odhiambo, an innovation officer at the Kenyan Red Cross.
