KEEF was established as a Trust in 2004 and targets micro entrepreneurs and small scale farmers in rural and semi urban areas in Central Kenya, South Rift Valley, Nairobi and Eastern provinces, with a focus on unbanked women and youth. More than 80% of KEEF’s clients live in rural areas and engage in agribusiness, mainly in dairy, poultry, pig, horticulture, tea and coffee farming.
During the past 3 years KEEF has tripled its number of clients every year. A large part of its success is attributable to its unique lending model and product offerings. KEEF clients belong to solidarity groups that are modeled on traditional savings clubs, known as “merry go rounds” in Kenya. In these clubs, members each contribute money monthly to the “pot” and in rotation each month one member takes all the money in the “pot.” KEEF has modified the traditional savings club with the addition of credit.
KEEF’s loan sizes will be in the range of EUR 100 – 5,000 and are targeted “to clients with good credit relationship mainly from the rural areas with interest in small to middle agribusiness, green entrepreneurial projects and other innovative and profitable businesses. The product will mainly support enterprises owned, operated/managed by women and the youth.”
Being a small institution with good structure, there is potential for KEEF to grow with MYC4 and become a significant provider. Their focus on rural areas, with use of technology to lower costs, enables a competitive edge and a needed portfolio diversification on the platform. We are also excited about the opportunity to increase MYC4’s portfolio in Kenya, which has been on a decline.