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Kenyan Providers

KEEF

The arbitration hearing took place on 28th and 29th as explained earlier. The arbitrator is expected to issue the award any time from now.

The Civil case is still ongoing at the High court-Commercial Division. The next session will be on 19th February 2016 which will be a mention for direction.

The Criminal investigations by the investigative authorities i.e. Criminal Investigations Department (CID) and Banking Fraud Investigation Department (BFID) has since been completed and the investigation file forwarded to the Director of Public Prosecution (The DPP) for review and direction on the way forward.

     Keef

 

Milango

The debt collection agency engaged for Milango has already commenced the exercise.

They have since contacted all borrowers with outstanding loans and are working in close collaboration with Milango Financial services staff to ensure  recovery of the loans in good time.

 

Milango

 

Yehu

Yehu January repayment has been received. However they are yet to catch up with the June 2015 agreement. We still  trust that they will catch up when cash flow position improves.

Yehu logo

 

Jubilant Kenya Limited

As indicated earlier Jubilant has continued to experience financial constraints since last year. They have however  promised to accelerate their repayments in order to fully repay the outstanding loans by June 2016.

MYC4 has clearly indicated that failure to make payments to catch up with the June 2015 agreement, we will hand them over to a debt collector.

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Tanzania Providers

Mtaji

As earlier indicated Mtaji has not been keeping their promises to make payments.

MYC4 has taken a step forward to hand over the portfolio to a reputable debt collection.

We will update on the developments forward going.

Mtaji

Jubilant Kenya Limited

As indicated in our previous update on Jubilant , they have undertaken to regularize their position by accelerating repayments this year towards fulfilling the June 2015 agreement.

Myc4 has since received their first repayment this year and we are positive that they will keep their promise going forward.

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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.

Kenyan Providers

KEEF

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

 

Keef

Milango

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.

Milango

Yehu

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.

Yehu logo

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.

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Tanzania Providers

Mtaji

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.

Mtaji

Mtaji

Mtaji Credit Facility has made another repayment to MYC4. This is just after the successful conclusion of Tanzania’s elections that were held peacefully late last month, we are in constant communications with Mtaji and hope he will soon do another payment to regularize his account.

We expect that businesses have gone back to normal and political environment has eased as such loan recovery will resume.

Mtaji

The Royal Danish Embassy in Kenya continues to put pressure on the government and is following the matter closely and supports its just conclusion according to the laws of Kenya.

http://www.businessdailyafrica.com/Danish-fund-s-Sh92m-loss-to-local-partner-draws-in-embassy/-/539552/2957638/-/da3wx3z/-/index.html

Newspaper article

 

MYC4 investors pool money to fund each loan on the platform – while simultaneously competing to participate on the loans by selecting their own interest rates. The bidding process is inspired by a Dutch auction model.

Dutch auction is a type of auction in which the bidding begins with a high asking interest which then subsequently is lowered until investors are willing to accept the lowest rate, or a predetermined interest rate (the borrower’s minimum acceptable interest) is reached. The winning investors bids the lowest announced interest and ultimately win the bids to investor in the business.

Myc4 enlisted the support of the Danish Embassy to put more pressure on the ongoing investigations on the KEEF dispute. The Embassy was pleased to offer its  help and they have since written to the investigating units involved in the Matter i.e The CID and the BFID. They have also written to KEEF’s lawyer about the matter in court.

The Embassy is committed to use every means available to ensure the matter is settled amicably and speedily.

These letter are attached  here in below.

Letter for Banking Fraud Investigations Department by The Royal Danish Embassy

Letter for Criminal Investigation Department by The Royal Danish Embassy

Letter for KEEF’s Lawyer  by The Royal Danish Embassy

Meanwhile the court case and arbitration process continues with hope that a solution will be reached in the near future.

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