As a development organisation, Kuyasa measures success through the positive impact it has on the lives of its clients. Kuyasa currently offers a housing loan to its clients.
Since inception, the fund has focused on the distribution for housing improvements, allowing the poor to manage their housing process through incremental building. Typically, loans are used for extending current dwellings or for improvements such as fencing, security, tiling, flooring, plastering, painting and roofing.
The Kuyasa housing loan product dramatically increases the value of client homes, enabling people to benefit economically, socially and financially from the capital asset they own whilst also encouraging their participation in formal financial steams and the property market.
The following case study is a typical example of the impact Kuyasa has by leveraging capital in order to build client equity. A government subsidy funded home in the Western Cape is valued at R50 000 and is typically 23m2 to 36m2 in size. After investing their savings (about R2 800) and two Kuyasa loans (total value of R12 000 to R15 000), the final homes of Kuyasa clients are on average 60m2 to 72m2 in size and valued at between R150 000 and R350 000. This represents a massive increase in asset value for low income households. The graph below summarises the cumulative impact of Kuyasa finance on the housing assets of our clients.
A big house is important because there are always illnesses if you live packed together. There are lots of germs. When a house is open you feel light, you feel the air.
A one-roomed RDP house was not big enough. Our family sleeping quarters had to be divided using wardrobes. We decided to extend because the environment was not good for living.
Port Elizabeth Projects
Kuyasa was the only place I could access money. We’re not allowed to go to the bank. It is the only people who have got money that can go to the bank. Where could I get it with the pension money?”