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Archive for the ‘Investing on MYC4’ Category

Kenyan Providers

KEEF

The civil case was mentioned on 13th March 2018 as indicated earlier.

The parties confirmed having filed submissions and given a new date 21st May 2018 for highlighting of their submissions.

The criminal case  in Kiambu High Court, Police Case file KIAMBU P/STN .PCR NO.275/2017 wherein Mr Damiel Kimani and Mr Simon Kamau has been charged , came  up for hearing  on 5th April 2018 . The Court adjourned the case to 23rd  July  2018 wherein more witnesses will take stand.

More updates will be shared in our subsequent blog updates.

     Keef

Milango

MYC4’s  legal team will advise on the way forward in regards to the legal action against Milango  . Details will be shared in subsequent blog updates.

Milango

Yehu

Yehu  has to date continued to making monthly repayments in line with an out of court settlement agreement entered in June 2017.They will settle their obligations by November, 2018

Yehu logo

Jubilant Kenya Limited

The Case came up for ruling  on 30th April 2018 .

The court ruled in favor of MYC4 by throwing out the Jubilant’s  application to have the Court set aside and declare the out of Court Consent entered with MYC4 null and void.

The Court further ordered Jubilant to pay MYC4 within 60 days the entire debt plus costs of the suit.

MYC4’s legal team will be advising on the way forward and the best way to make recovery from Jubilant.

Further developments on the matter will be shared in our subsequent update.

Tanzania Providers

Mtaji

The case launched by MYC4 lawyers in Tanzania is proceeding on at the High Court of Tanzania

Mtaji(Damasi Massawe) has since replied to our application by way  of a replying affidavit.

MYC4 lawyers upon receiving the replying affidavit has prepared a counter claim to respond to the issues raised in Damassi’s affidavit.

Further ,Mtaji through Damasi has filled an application in Court seeking MYC4 to put a security deposit in Court since it is a foreign company.

Our lawyers similarly have prepared a reply to that application and will lodge it in Court.

The Court registry will give a new mention date for the case.

More details will be shared in our subsequent updates as the case proceeds in Court.

Mtaji

BELITA

MYC4 is still working hard to find a way of collecting the outstanding loans from BELITA. Any developments will be shared going forward .

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Keef

In our last update on the KEEF situation, we informed you that MYC4, through its lawyer applied to the High court of Kenya for orders to take the dispute to arbitration since this was provided for in the Loan provider and Admnistrator Contract signed between MYC4 and KEEF. In this post we seek to update you on the developments since the application for arbitration.

The court granted MYC4 the orders and referred the matter for arbitration irrespective of the ongoing court case, as the Arbitration law provides for such. Effectively, the arbitration process causes stay of other proceedings concerning/related to the same dispute.

MYC4 through its lawyer wrote to the Chairman of Kenya Arbitration Council informing him of the court decision and requesting for appointment of an arbitrator. The Chairman indeed acknowledged receipt of the same and confirmed that he will appoint an arbitrator. The Chairman appointed an arbitrator for the matter.

Upon appointment as arbitrator of the MYC4/KEEF dispute, the arbitrator, in writing, invited both parties for a meeting with him on 25/6/2015 (today) to take direction on how to proceed with the process.

KEEF did not appear for the first arbitration meeting today. MYC4 expressed their concern about the delay tactics of the other party. The arbitrator will inform both KEEF and MYC4 in writing about the next meeting to be convened in seven days. Since there have been no court orders staying the arbitration, MYC4 expects that the proceedings will continue uninterrupted, regardless of KEEF’s position.

We shall update you on any new developments. Thank you for your continued support.

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Below is an update on providers up until the month of May.

Kenyan Providers

KEEF –  They hold a substantial amount of MYC4’s portfolio which defaulted several months ago. There has been no cooperation from KEEF on all matters repayments for a while now. Attempts at talks to get them to honour their financial obligations did not bear fruit and MYC4 sought legal action.

MYC4 made a request to the court for arbitration as arbitration is a fast and effective option. MYC4’s legal counsel approached the arbitration council of Kenya and requested for the appointment of an arbitrator. The council appointed an arbitrator. MYC4’s counsel has informed the court of this appointment. The court is for the option of arbitration as the way forward for both parties. MYC4’s legal counsel and KEEF’s legal counsel are expected to meet the appointed arbitrator and discuss the way forward. The court case has been halted until the arbitration process comes to completion. However, the court is and can be of assistance during the arbitration process. MYC4 awaits the commencement of arbitration.

Keef

 

Milango – Their PAR 30 currently stands at 99.9%

The MYC4 team was in Milango offices in Mombasa in February for a a portfolio audit exercise and from this exercise, it came to our attention that Milango did not submit to MYC4 investor funds that were collected from borrowers repaying MYC4 loans.

This month of May, the MYC4 team went to Milango offices in Mombasa for a follow up. Milango still hasn’t lived up to the agreement to remit the funds collected. The team discovered that there have been Milango have made further collections and did not remit to MYC4.

MYC4 has written a letter to Milango instructing that the funds collected be remitted within 8 days. A follow up phone-call will be made once the letter is received. MYC4 is awaiting feedback on this.

 

 

Milango

 

YEHU

The MYC4 team is set to visit Yehu Offices in Mombasa for a portfolio audit soon. Meanwhile, MYC4 is following up on repayments as Yehu has not remitted repayments over the last month.

MYC4 has sent a letter instructing Yehu to remit repayments as their PAR 30 is quite high. The letter also sought to find out how they plan to proceed.

Discussion are currently ongoing.

Yehu logo

 

Jubilant Kenya Limited – Their PAR 30 currently stands at 95%.

MYC4 team visited Jubilant offices in Mombasa this month of May and conducted a portfolio audit. Jubilant has made collection on repayments and have not remitted this funds to MYC4.

MYC4 has sent  a letter instructing for the funds collected to be remitted.

MYC4 is awaiting feedback on said matter.

 

 

Picture1

 

Premier Kenya – Premier Kenya has cleared their portfolio with MYC4 and we wish them all the best in their endeavours.

 

premier

Tanzania Providers

Mtaji – Their PAR 30 currently stands at 0%.

Mtaji has effectively adhered with their repayment agreement with MYC4 and we expect their next repayment in July.

Mtaji

 

Uganda Providers

Tujijenge Uganda -Their PAR 30 currently stands at 48%.

We are following up on repayments and we expect repayments for the month of May shortly.

TUG

Uganda Microcredit Foundation – UMF has cleared their portfolio with MYC4 and we wish them all the best in their endeavours.

umf

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In follow up to the SMS that MYC4 sent MYC4/KEEF borrowers, MYC4 placed a public notice in the mainstream newspaper, the Daily Nation. The notice ran in today’s 27/04/2015 Monday paper.

Myc4 Public Notice, Daily Nation

Myc4 Public Notice, Daily Nation

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As we indicated in our previous post MYC4 sent out bulk SMSes/Text messages to go out to all individual MYC4/KEEF borrowers informing them of:

i.) the legal termination of the MYC4/KEEF contract
ii.) they are to make repayments directly to MYC4

The SMS in question read:

“Dear(borrower name)Pursuant to termination of the Loan Administration Contract between MYC4 and KEEF, we MYC4 wish to advise you personally that KEEF is no longer administering your loan and that your loan and you are not supposed to make any further payments through KEEF. Any payments made to KEEF after receipt of this notice will not be credited to your Loan Account.

(borrower name)Your Loan of Ksh. …….., advanced through and guaranteed by KEEF, is more than 180 days late. We demand that you pay your outstanding debt within the next 14 days, to avoid legal action to collect. Pay through paybill number 835801 and indicate your name as the account Id, in case of any queries kindly contact us through our Tel No. 0706546010 or visit our offices at Kilimani Business Centre on Kirichwa Road for further information”

 

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As stated earlier, MYC4 has taken a Timeout on the uploads of new loans to borrowers in Kenya following a major dispute with one of our providers in Kenya, KEEF who have wrongfully decided to neglect their obligation to repay a large amount to MYC4 investors.
The following are the latest developments on the situation:
1.MYC4 had previously taken the matter to court, but legal counsel advised arbitration as the best way forward. Arbitration, especially in Kenya is bound to take a much shorter period compared with the regular court process that could drag on for years.
MYC4 has already legally terminated the contract with KEEF and filed for arbitration.
2. MYC4 has sent bulk SMSes/Text messages to go out to all individual MYC4/KEEF borrowers informing them of:
i.) the legal termination of the MYC4/KEEF contract
ii.) they are to make repayments directly to MYC4
iii.)the details of where to make the repayments
3. MYC4 is putting maximum effort on making recoveries and collecting delayed repayments from all respective providers.
There shall be more updates as the situation continues to unfold.
Thank you for your continued support.

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 MYC4 logo - Copy

 

PRESS RELEASE

For Immediate Release 31 March 2015

KIAMBU MICROFINANCE KEEF DEFRAUDS INVESTORS KES.112 M

Nairobi, March 31, 2015: Today, MYC4 has announced the existence of fraud in one of its microfinance partners, Kenya Entrepreneurship Empowerment Foundation (KEEF). The Danish online lending platform, MYC4, claims that KEEF has defrauded Kes. 112 million in investor funds including accrued interest on the defaulted portfolio. A total of Kes. 245Million was mobilized for KEEF on the MYC4 platform by May 2014; and by August 2014, only Kes. 125Million had been received in repayments. “All engagements with KEEF have since failed and we are fearful that investments from citizens from 120 countries may have been embezzled by the Kiambu based microfinance institution,” says Mads Kjaer, CEO and Founder, MYC4.

MYC4 has claimed to have entered into a contractual agreement with KEEF in 2012 to fund small business in Kenya through the latter’s online lending platform. They further allege to have raised a red flag upon noticing an increase in defaulted amounts. In response to this, KEEF’s CEO, Daniel Kimani revealed that some of his staff members had been implicated in fraudulent matters and were under investigations by the police. Mr. Daniel assured MYC4 and its stakeholders that KEEF remained committed to the partnership.

“Rather than come clean with investors at MYC4, executives at KEEF falsely portrayed willingness to settle the balance,” said Mads Kjaer, CEO and Founder, MYC4.  “The false portrayal has threatened the integrity of MYC4 as a credible lending platform, and even more worrying, the commitment of Kenya’s microfinance industry to access financial services for their informal businesses. Kes. 112 million is no mean fete and we plan to purse it vigorously.” According to MYC4, KEEF’s conduct puts the MFI’s Board of Directors under uncertain light; its existence and functionality is questionable too.

According to MYC4, in addition to the Providers Loan Agreement, KEEF agreed to 100% guarantee borrowers by signing Guarantee and Indemnity Agreement that bound them to settle any defaulted loans. The Agreement stipulates that KEEF should remit the defaulted funds to MYC4 within 10 days after default. It is noted that when the loans first started to default in mid-2014 KEEF did not make any such settlement and since then the entire KEEF loan portfolio has defaulted.

Now MYC4 claims that they will halt activities in Kenya due to KEEF’s embezzlement. “Our experience with KEEF has revealed part of the nature of the microfinance industry in Kenya: there may be more individuals, masquerading as microfinance practitioners, but are using the profiles of unsuspecting entrepreneurs to source for funds to enrich themselves. Investors from more than 120 countries have lost Kes. 112 million in fraudulent dealings and many entrepreneurs in in Kenya’s informal sector will lack funds due to KEEF’s unprofessional conduct. In conclusion, MYC4 is warning potential and current entrepreneurs to be wary of such microfinance institutions.

About MYC4

MYC4 is an online lending platform founded in Denmark under the trade mark MYC4 A/S. The institution carries its operations through an online lending platform where investors from 120 countries across the world make bids to fund profiled entrepreneurs from Kenya. Entrepreneurs are profiled and uploaded by Microfinance Institutions in partnership with MYC4. These MFIs are referred to as providers. See the MYC4 lending process on www.myc4.com

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