Cheror which literally means warm welcome in Pokot dialect is a Self-Help Group based in Lomut, Masol Conservancy. The group with a membership of 22, is comprised of producers and processors of honey. Under the Ustahimilivu Program, an initiative of the E4Impact Entrepreneurship Center Kenya, the group was pre-selected as part of the beekeeping beneficiaries. Some of benefits they are receiving are a modern honey processing unit, capacity building on modern beekeeping, market linkages and access to a hub where they are making modern beehives for other honey producers.
With the modern commercialization of beekeeping in ASAL counties like West Pokot, this venture cannot grow without a sound financial analysis. Producing a product for sale through the complex means of managing the insect society is far more difficult than the financial analysis of a traditional raw materials versus end product model.
As put out by Mr. Jackson Ngiroh, Nakorotee Beekeeping Self Help Group Chairman, ‘I am afraid to calculate how much I have spent on beekeeping and do a comparison with the product sales, because if I do, I might forego doing the business and I don’t want to stop.’
Increased cost of inputs has made the profit margin in agriculture to steadily decline. With the seasonality nature of beekeeping, the line between gain and loss becomes more indistinct, giving actors in the value chain less room for errors. It becomes evident daily that beekeepers require more knowledge on financial tracking and management to be able to create profitable ventures.
Tracking, recording and analysis of finances is very crucial in beekeeping. There are several major ways to juggle finances, including: reducing costs, increasing income and restructuring debt.
Photo session with cheror SHG after the 3-day training on financial management
Through the Ustahimilivu Program, Cheror SHG can gain necessary knowledge on managing their finances and pricing their products. They can comprehend governance and group dynamics, develop an innovative and sustainable business model and increase product market linkages. Previous trainings held with Cheror on group entrepreneurship pointed major gaps in administering the financial concepts. To introduce a sound financial foundation, E4Impact organized a 3-day training on financial management. The training was conducted in collaboration with the county government of West Pokot. The focus was to embed knowledge on pricing and costing, break-even analysis, key financial statements, variance and ratio analysis in beekeeping.
Tracking, recording and analysis of finances is very crucial in beekeeping. There are several major ways to juggle finances, including: reducing costs, increasing income and restructuring debt.
“Support to Resilience for Sustainable Livelihoods” (Ustahimilivu) is a project, funded by the European Union in Kenya’s West Pokot County. It is implemented by E4Impact together with CEFA Onlus, Northern Rangelands Trust, Amref Health Africa, and Somirenec.
By Dorcas Yano
Project Officer, West Pokot
