MICROCAPITAL BRIEF: Kenyan Settlement Bangladesh Adopts Bangla-Pesa, a Complementary Currency for Businesses

Koru Kenya, a Mombasa-based non-profit organization, has introduced a complementary currency called Bangla-Pesa in Bangladesh, an impoverished Kenyan settlement, that will serve as an interest-free credit line for businesses. [1]

Approximately 200 small scale businesses agreed to accept the currency in return for a 400 Bangla-Pesa credit. These businesses make up the Bangla Business Network (BBN), which is a committee that was formed in November 2012 to administrate, network and organize community projects. A business that wants to join BBN must find four other businesses to act as guarantors who must agree to pay back the Bangla-Pesas in case of default. The members of BBN can trade with each other using the Bangla-Pesa, however the new currency cannot be traded for Kenyan shillings.

The Bangla-Pesa can purchase a range of services such as clothes washing, manual labor, education, tailoring, repairs and house building and goods such as water, food, medicine and oil. Reportedly, the Bangla-Pesa will be able to be traded on mobile phones by the end of 2013. The value of the Bangla-Pesa has not been released.

In some cases, organizations have used complementary currencies to activate the local markets or develop micro enterprises. Complementary currencies can also have environmental purposes, for example the Eco-Pesa that was introduced in the Kenyan settlement of Kongowea in 2010 to develop infrastructure to dispose of trash and sewage.

Koru is a community-run organization that deals with a range of social issues in both urban and rural areas, but primarily focuses on improving the community. Financial information for Koru is not yet available.

By Meghan Gillis, Research Associate

About Koru Kenya

Koru is a non-profit, community-run organization based in Mombasa, Kenya that was formed in 2009 by Jacky Kowa and Will Ruddick. The word “Koru” means spiral, which symbolizes new life, dynamism and peace. The organization deals with a range of social issues, from the environment to the economy, in both urban and rural areas, but primarily focuses on improving the community. Financial information for Koru is not yet available.

Sources and Additional Resources

[1] Quartz: “Introducing the Bangla-Pesa, Kenya’s Beautiful New Complementary Currency,”http://qz.com/86618/introducing-the-bangla-pesa-kenyas-beautiful-new-complementary-currency/

[2] Koru Kenya: “Bangla Pesa- Complementary Currency Program,” http://koru.or.ke/bangla

[3] Koru Kenya: “Présentation,” http://koru.or.ke/fr/about

MicroCapital brief, May 24, 2013, “MICROCAPITAL BRIEF: Central Bank of Kenya Grants Deposit License to U&I Deposit Taking Microfinance Limited,” https://www.microcapital.org/microcapital-brief-central-bank-of-kenya-grants-deposit-license-to-ui-deposit-taking-microfinance-limited/

MicroCapital brief, May 24, 2013, “MICROCAPITAL BRIEF: Agricultural Mobile Applications in Kenya Increase Market Information for Farmers,” https://www.microcapital.org/microcapital-brief-agricultural-mobile-applications-in-kenya-increase-market-information-for-farmers/

MicroCapital brief, April 22, 2013, “MICROCAPITAL BRIEF: Younger People in Kenya More Open to “Game Changer” of Buying Investment, Insurance Products by Mobile Phone,”https://www.microcapital.org/microcapital-brief-younger-people-in-kenya-more-open-to-game-changer-of-buying-investment-insurance-products-by-mobile-phone/

MicroCapital brief, March 19, 2013, “MICROCAPITAL BRIEF: Value of Mobile Money Transactions in Kenya Grows 50% to $16b in 2012 Fiscal Year,” https://www.microcapital.org/microcapital-brief-value-of-mobile-money-transactions-in-kenya-grows-50-to-16b-in-2012-fiscal-year/

MicroCapital. February 12, 2013, “MICROCAPITAL BRIEF: Kenyan Mobile Operator Safaricom Increases Mobile Money Fees in Response to 10% Tax,” https://www.microcapital.org/microcapital-brief-kenyan-mobile-operator-safaricom-increases-mobile-money-fees-in-response-to-10-tax/

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