Below is a follow up update on providers as at January 2016.
Many investors have been contacting us to inquire when they can restart lending to African Entrepreneurs yet again.
Myc4 is doing all we can to bring to conclusion the differences encountered with our Kenyan partner KEEF-Kenya but haven’t managed to recover the approximately 1 Million Euros which KEEF-Kenya is holding back contrary to their contractual obligation as a provider and as such we are therefore forced to extend the current timeout for new lending.
For more details on individual partners please read below.
Arbitration process is ongoing. The last Arbitration meeting took place on 18th December 2015. Myc4 has filed all requisite documentation and notified witnesses in readiness for the full hearing.The Arbitrator gave notice of hearing which will take place on 28th and 29th January 2016. A ruling will be delivered shortly after.
The Civil case is still ongoing at the High court-Commercial Division .
The Criminal investigations by the investigative authorities i.e Criminal Investigations Department( CID) and Banking Fraud Investigation Department(BFID) is at an advanced stage and we trust justice will be served shortly
As previously indicated Milango has since transferred all loan files to MYC4 offices. MYC4 has already instructed its legal counsel in Nairobi,Kenya to institute debt recovery proceedings against Milango Financial Services and its directors. In addition Myc4 has procured the services of a reputable debt collection agency to pursue the debt collection from the borrowers in addition to the pursuit on the institution.
Yehu has continued to pay albeit with difficulties. The last repayment installment was received in December 2015 . However as a whole Yehu is still behind the June 2015 repayment agreement.
Jubilant Kenya Limited
Jubilant continued to experience financial constraints since last year. They have however indicated that the situation is expected to normalize soon and have promised to accelerate their repayments in order to keep in phase with the agreement made in June 2015.
Mtaji Credit Ltd has indicated that the recently concluded elections in Tanzania affected business climate generally.This resulted in most businesses slowing down their operations during the heightened electioneering period. Systemically this also affected repayment from businesses and consequently cash flow constraints followed.The Management of Mtaji has undertaken to fast track repayment to cover the missed installments.
Myc4 has however indicated to Mtaji that in the event that they are not making transfers to keep in phase with the previous agreement we will consider handing over the portfolio to a debt collection Agency already identified.