The introduction of the Sarafu complementary currency system in Kenya
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E Africa, Kenya, Offline+Online- Where did this use case occur?
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2018- ongoing- When did this use case occur?
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Grassroots Economics- Who were some of the key collaborators
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50,000 people- How many people participated?
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Blockchain, Currency / Trade, Municipality- What are some keywords?
What was the problem?
Due to crisis, industry closure or seasonality, the shilling (the official currency of Kenya) often became unavailable. This led to thousands of people and micro-entrepreneurs undergoing tumultuous economic circumstances.
How does the community approach the problem?
In smaller scopes, communities across Kenya already utilized informal currencies and non-currency based exchange mechanisms. Through experimentation and facilitation by civil society, communities agreed on utilizing one shared currency to widen the network of trade and aim for a bigger impact.
What were the results?
Over 50,000 people across Kenya have adopted Sarafu to trade basic needs with each other. Despite the pandemic, the Sarafu network continued to grow in trade value. As of 2021, trade value is reported to be above 16 million shilling and nearly 68 percent of the user population indicated that the Sarafu system has improved their access to clean water and other basic needs [1].
How participatory was it?
Collaborate
The Sarafu’s development has been on a path shaped by the communities across Kenya: Elders were consulted and the system was made more technological in time. Not only that, many communities agreed to join in, therewith reaching consensus on various design decisions surrounding a mutually used alternative currency of exchange.
What makes this Use Case unique?
'Community inclusion currencies come in many shapes and forms. This one combines ease of use -users solely need a basic phone with SMS capabilities- with a state-of-the-art underlying infrastructure. An impressive instance of cooperation.' -Sem