Toi Market is a large and vibrant trading area on the edge of the Kibera informal settlement in Nairobi, Kenya. Operating since 1983, the market has expanded to occupy some 6 acres of land and has become a key supplier of fresh produce for Nairobi.
As a burgeoning economic centre, the Toi Market attracted a number of microfinance institutions (MFI) who provided business loans to traders. Yet despite the availability of investment finance, the market saw a decline around the year 2000, with traders closing down or defaulting on MFI loans. By 2003-4, half the market had closed.
To reverse the decline, leaders established a daily savings scheme, based on the SDI model, to build a capital asset available to traders and develop financial products that addressed the specific conditions in Toi Market. This case study explores the outcomes and lessons learned.
