Turning Point Finance Programme Evaluation: Opening Doors for the Ultra-Poor

This paper discusses the development and success of the Turning Point Finance Program (TPFP) in Kenya. It outlines proposals for further development of the scheme.

The TPFP aims to make microfinance available to ultra-poor parents in the Kibera slum, Kenya. The program differs from that of other MFIs in terms of its focus on relationship building, zero interest, and very small loans. An internal evaluation in June 2010, two years into the scheme, found that TPFP had:

• Reached 88% of beneficiaries, with a zero percent default rate;
• Successfully targeted the ultra-poor, but it was difficult to confirm that program objectives were being met due to lack of information;
• Successfully offered flexible and reliable finance, but many beneficiaries still reported problems with paying for education and health care;
• Not only equipped beneficiaries with capital and business training, but also with ongoing coaching and encouragement;
• Fostered a strong sense of team work within the groups.

The success of TFPF can be attributed to its flexibility, simplicity, and the support it offered to beneficiaries. The scheme needs to improve in terms of repayment discipline and administration.