Below is an update on providers up until Mid August.
In our last update, we wrote that MYC4 awaits the commencement of arbitration. The arbitration process on the KEEF/MYC4 dispute has commenced and is currently in progress. MYC4 has provided substantial documented evidence to support its claims. KEEF owes MYC4 investors money to the tune of almost a million euros. These documents also show considerable evidence that in some instances KEEF did not transfer funds given by investors for African entrepreneurs to the borrowers. In many instances, KEEF also did not repay MYC4 investors the funds repaid by borrowers. Additionally, testimonials/statements from KEEF borrowers reveal that KEEF has not been paying back savings deposits to borrowers.
Investigations by the Kenyan Criminal Investigations Department are also in progress. MYC4 is counting on the Kenyan judicial system to work fairly and with haste. We anticipate that the arbitrator will have a ruling in the next few months.
MYC4 has terminated its partnership with Milango Financial Services. This is mostly due to the delay in repayments as well as the lack of commitment by Milango to a repayment schedule. MYC4 has instructed Milango to submit their MYC4 portfolio files so that they can be presented to professional debt collectors. A debt collector has already been identified and discussion are ongoing on how to proceed with the exercise.
Unfortunately, the recent and current Time-out has led to Yehu experiencing some difficulties. This is partly because Yehu had expectations of utilizing the MYC4 funds to loan to borrowers. MYC4 and Yehu have since come to an agreement of a fixed, guaranteed monthly repayments which they are already honoring.
Jubilant Kenya Limited
Unfortunately, the recent and current Time-out has led to Jubilant experiencing some difficulties. This is partly because Jubilant had expectations of utilizing the MYC4 funds to loan to borrowers. MYC4 and Jubilant have since come to an agreement of a fixed, guaranteed monthly repayment. In addition, Jubilant has agreed to have their Guarantee deposit be paid back to MYC4 investors without delay. These funds will be processed and paid back to MYC4 investors with immediate effect.
Mtaji have honored the January agreement up till July. They have now promised to catch up and pay by the end of next week.
Tujijenge Uganda has honored the repayment agreement and are looking to increase the monthly installments so that MYC4 lenders can expect to see them finalize their outstanding repayments in the coming months.