Feeds:
Posts
Comments

Posts Tagged ‘BELITA’

Kenyan Providers

KEEF

The case filed by MYC4  seeking to  register the arbitration award and obtain a Decree was adjourned and the parties thereto ordered to  appear before the Judge on the 14th March 2017 .

In regards to the investigation by the Director of Criminal Investigation(DCI)  MYC4 also expects that the Director of Public Prosecution(DPP) has had adequate time to review the investigation file  earlier forwarded to him and any time now expect an  official communication on the decision the DCI should take. A more  updates  will be issued upon receipt of the communication from the DCI’s office.

     Keef

Milango

MYC4 legal team is in the process of preparing a legal proceeding against Milango Financial Services and guarantors  as indicated earlier . Details will be shared in subsequent blog updates.

Milango

Yehu

Yehu  made its last  repayments in the month of  December 2016 and MYC4  expects they will continue repayment through the year 2017 until its debt is cleared.

MYC4 and YEHU’s legal team will soon finalize and execute a final repayment agreement in the coming weeks.

Yehu logo

Jubilant Kenya Limited

Myc4 is  has continued intervention upon Jubilant Kenya to resume repayments.  A visit in the same spirit was made in the Month of November 2016 but todate Jubilant has not lived up to the repayment agreement of April 2016.

Due to Jubilant’s inability to resume repayment nor give an acceptable guarantee , MYC4 has resulted in taking legal action against Jubilant .

MYC4 will also communicate Jubilant’s default status to the larger general public in addition to forwarding the negative information to the Credit Reference Bureaus.

MYC4’s legal team will in addition to the above measures  institute a legal proceeding  to recover the outstanding debt.More details will be shared in subsequent Blog updates. .

Tanzania Providers

Mtaji

As communicated in our earlier updates ,Mtaji made their last repayment in the month of October 2016.

Myc4 has considered taking legal debt recovery procedure against Mtaji in a bid to put more  pressure and ensure they clear the outstanding.

MYC’s legal team will seek to reach out directly to the other Board Members .Details of this will be shared in our subsequent updates.

Mtaji

BELITA

BELITA has not been able to settle a repayment agreement with MYC4 .However , MYC4 is working had to find a way of collecting the outstanding loans from BELITA.Any progress will be shared forward going.

Read Full Post »

Kenyan Providers

KEEF

 

The court case is still ongoing and the next session will be on 25th October 2016.

The CID /BFID  investigation is still awaiting the DPP’s  recommendation and the  way forward of the findings presented to his office in December 2015.

Myc4 will issue an  update upon receipt of official communication from the DCI

     Keef

Milango

Myc4  lawyers  issued legal demand notice to Milango and its guarantors  which  has since expired. The legal team is preparing for the next course of action which is taking legal action to Milango and its Guarantors  .More update to follow in our next update post.

Milango

Yehu

YEHU’s lawyers and MYC4 lawyers are in the final stages of competing a new repayment agreement as advised earlier.

Yehu logo

Jubilant Kenya Limited

Jubilant Kenya Limited has been experiencing cash flow constrains following delayed capital injection from an equity investor.

They are however  doing their best to keep in pace with the repayment agreement made in March 2016.

Myc4 has been in constant talk with Jubilant in a bid to encourage them to honor their part of the agreement.

We trust that payment from Jubilant will resume soon.

Tanzania Providers

Mtaji

Mtaji and MYC4 entered in a new repayment agreement in the month of July . Mtaji has already made the August installment and is expected to make the September installment anytime now.

Mtaji

BELITA

As reported earlier MYC4 is still pursuing BELITA with the help of  the debt collection agency as indicated in previous updates.

Any new developments will be shared forward going.

Read Full Post »

Kenyan Providers

KEEF

As indicated previously the matter to obtain a judgement on the award previously issued by the Arbitrator is still pending in the High court.

The case is coming for mention  on 5th September  2016 where all parties are expected to appear before the judge for directions.

The CID /BFID  investigation is still awaiting the DPP’s  recommendation and the  way forward of the findings presented to his office in December 2015.

Myc4 will issue an  update upon receipt of official communication from the DCI

     Keef

Milango

Myc4  lawyers  issued legal demand notice to Milango and its guarantors  which  has since expired. The legal team awaits response from Milango and will advise if there will be a need to go to court  for recovery of the outstanding debt depending on the outcome  .The next course of action will be advised in subsequent updates.

Milango

Yehu

Yehu has continued to pay to MYC4  on a monthly basis.

YEHU’s lawyers and MYC4 lawyers are in the final stages of competing a new repayment agreement as advised earlier. This will see YEHU pay a constant monthly repayment towards settling their obligation with MYC4 .

Yehu logo

Jubilant Kenya Limited

Jubilant is working hard to keep its repayment plan to date.Jubilant is expecting a capital injection from the new equity investor part of which will go in to accelerate repayments to MYC4.

Tanzania Providers

Mtaji

MYC4 team visited Mtaji in Tanzania with a view to coming up with a repayment agreement that is acceptable to both parties .

MYcC4 and Mtaji has since entered into a new repayment agreement that will see Mtaji pay a monthly installment toward settling the outstanding debt with MYC4.

Mtaji team remains optimistic and willing to settle MYC4’s obligation as business situation impoves .

Mtaji

BELITA

MYC4 is still pursuing BELITA with the help of  the debt collection agency as indicated in previous updates.

Any new developments will be shared forward going.

Read Full Post »

Kenyan Providers

KEEF

The matter to obtain a judgement on the award previously issued by the Arbitrator is pending in the High court.

The case was  mentioned  on 14th June 2016 where all parties appeared before the Judge.

MYC4 confirmed to the Judge that it had complied with previous directions.

The Judge gave some direction and another mention was set for 5th July 2016.

The CID /BFID is still awaiting the DPP’s  recommendation and the  way forward of the findings presented to his office in December 2015.

More update will be provided after and official communication from BFID/CID

     Keef

Milango

Myc4  lawyers  have since issued legal demand notice to Milango and its guarantors to pay MYC4 the outstanding loan balance within 21 days. Once the notice period is over the legal team will advise on the next steps depending on how Milango and the Guarantors will have responded. We will keep you posted on any new developments on the issue.

Milango

Yehu

Yehu has continued to pay to MYC4  on a monthly basis.

As advised  YEHU  had expressed interest to enter into a new and final agreement that is  reflective of the current situation to enable the clear the outstanding balance by paying a constant monthly repayment amount.Our legal teams are about to finalize the agreement.

Yehu logo

Jubilant Kenya Limited

Jubilant is working hard to keep its repayment plan to date. Jubilant signed an investment agreement with a new equity investor and capital inflow  is being processes after legal documentation has been successfully done.

See newspaper article here http://www.businessdailyafrica.com/Ex-banker-turns-desire-to-help-poor-into-microfinance-business/-/1248928/3247810/-/item/0/-/143wy7wz/-/index.html

Tanzania Providers

Mtaji

Mtaji has since reached Myc4 and  indicated that they have managed to realize some monies from  their debt collection exercise and will be transferring the same to MYC4.

MYC4 , as indicated earlier , is willing to enter into a new monthly repayment agreement to ensure that the outstanding balance is fully settled.

Mtaji

BELITA

Myc4 has since  listed  BELITA and the Directors with the CRBs as indicated earlier.

MYC4 has also increased its efforts through a debt collection agency(Quest Holdings Limites) and TAMFI in a bid  to ensure that the outstanding balance from BELITA is fully  settled.

Read Full Post »

Kenyan Providers

KEEF

As indicated earlier , The arbitrator has since issued an award  and Myc4 through its lawyers have moved to the High Court for a judgement/Decree.

The matter is still on going in the court and the next session will be on 14th June 2016.

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) 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.The DPP has not yet reverted to the investigative authorities with his recommendation and way forward of the findings presented to his office.

 

     Keef

Milango

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

Myc4 has also instructed its lawyers to proceed to issue a legal demand notice to Milango Board with respect to paying the obligation to MYC4 since earlier attempts to have the matter settled amicably bore no fruits.

Milango

Yehu

Yehu has been paying despite the cash flow challenges indicated earlier.

They have expressed interest to enter into a new and final agreement that in reflective of the current situation to enable the clear the outstanding balance by paying a constant monthly repayment amount.

Yehu logo

Jubilant Kenya Limited

As indicated earlier MYC4  has already entered a new repayment agreement that is reflective of Jubilant’s  current cash flow scenario. MYC4 will work closely with the Jubilant team to ensure that the new agreement is fully executed.

Picture1

Tanzania Providers

Mtaji

MYC4 has been working in close collaboration with the Debt collection Agency it enlisted to pursue the collection of the outstanding from Mtaji.

Mtaji has since reached Myc4 and  indicated that they are willing to resume paying the outstanding obligation.

MYC4 , in the view of the foregoing is willing to enter into a new monthly repayment agreement to ensure that the outstanding balance is fully settled.

Mtaji

BELITA

MYC4 has been working in close collaboration with the debt collection agency and TAMFI as indicated earlier to ensure that the outstanding balance from BELITA is fully  settled.

Myc4 has made real its earlier intention to list BELITA and the Directors with the CRBs. This is expected to put additional pressure to the institution to come forth and enter into a repayment plan towards settling the outstanding balance.

Read Full Post »

Here is the third quarterly portfolio performance update of the year.

The 3rd quarter of the year marked the 3rd quarter of successive decline in disbursements. The term loan (wholesale loan) of 250,000 Euros to Premier Kenya accounted for 53% of disbursements in the quarter. The fraud situation at KEEF had a big effect on the quarter’s performance, given that KEEF had sizeable disbursements in previous quarters. Other contributory factors included the stopping of activities in two countries. We now have recruited experienced personnel so as to aggressively grow the Kenyan market and are optimistic of improved activity going forward. We have also engaged with Premier Kenya to upload the retail loans.

The portfolio quality declined sharply in the quarter. The portfolio at risk above 30 days (PAR30) closed the quarter at 54% and net defaults were at 4%. There were no defaults in the 3rd quarter. Several factors have affected portfolio quality in the quarter including termination of activity in other East African countries, fraud situation at KEEF, shrinking portfolio size among others.

From an investor point of view, the overall net return is again positive at 0.8 % on loans disbursed by the current providers* in the last five years. This represents a drop compared to previous quarters, where the return revolved around the 1.5% mark. The investor interest has been low due to competition to fund the limited opportunities that were available in the quarter

Slide1

Portfolio Performance – current providers* (click to enlarge)

The Portfolio Performance Graph above shows the performance of loans disbursed since 2010 divided by quarter of disbursement. The colour blue shows funds that have already been repaid, green shows amounts that are being repaid on time, yellow indicates the balances on loans that are currently more than 30 days late, while red shows the net defaulted principal (i.e. defaulted principal less recoveries).

The disbursements was distributed through 5 providers, all in Kenya; except a few from Tujijenge Uganda that had been funded close to their upload deadline of 30th June. The wholesale loan of 250,000 Euro to Premier Kenya accounted for 53% of the disbursements in the quarter – being further testament of subdued activity in the quarter. The other portfolio was distributed among Yehu (27%), Jubilant (14%), Milango (5%) and Tujijenge Uganda (1%).

The distribution of the funds can be seen in the graph below.

Slide2

Disbursements in € per provider in Q3 2013
(click to enlarge)

There were changes in terms of the profit and loss. Loans disbursed between Q2 2011 and Q4 2011 have experienced forex gain. 2012 were further affected by currency losses, but the overall net result of 13 of the last 14 quarters – the exception still being Q3 2012 – continues to be positive seeing as interest earned covers losses on currency (see graphs below). There have been significant defaults in the month of November 2014, which is reflecting on Q3 data (given that production of the Q3 report has been delayed, the status of defaulted loans do not represent the status as at end of Q3).

Slide3

 

Profit & Loss – current providers* (click to enlarge)

Slide4

Net profit & loss (sum of interest, defaults less recoveries, and currency gains/losses) – current providers* (click to enlarge)

The Profit & Loss graphs above show the current result on loans disbursed since 2010 divided by quarter of disbursement. In the first graph, the colour green shows the earned interest, the red indicates the net defaults (i.e. defaulted principal less recoveries), and the purple shows the net realised currency gains or losses. The second graph shows the same figures as a net sum to give an easy overview quarter by quarter.

The total MYC4 portfolio closed the quarter with an outstanding loan balance (OLB) of €1.96 million in 4,593 active loans. This is an increase from the previous quarter’s €1.79 million. Around 85% of the portfolio is concentrated in Kenya where KEEF is the largest provider; 9% is held in Uganda; and with 9% in Tanzania.

Remember that you can always monitor the development and performance of the portfolio in real-time by following this link: MYC4 Portfolio

 

Read Full Post »

The last day of June marked the final day of uploads from Uganda. Henceforth, our Uganda providers will join our Tanzania providers in winding down their portfolios. MYC4 continues to search for Providers in Kenya so as to grow its portfolio. Below is an update of all the providers.

Kenya Providers

Kenya will going forward be our country of focus. The microfinance market in Kenya is huge and stable: We will thus utilize our resources to maximizing on the market.

KEEFYehuMilangoSisdo

 

 

 

 

 

 

 

KEEF – The PAR 30 of KEEF has suddenly deteriorated on the MYC4 system hitting 45% by end of June. Repayments from KEEF were not remitted in the month of June, KEEF had incidences of fraud by staff that involved the field staff, in some cases in collusion with borrowers. They had thus temporarily suspended operations so as to undertake forensic investigations to determine the extent of the fraud. They have now resumed operations as they finalize the investigations. We have had several meetings with the management of KEEF to find the best solution for the current impasse. They have assured us of their commitment to MYC4 investors, and we have no reason to doubt their going concern and ability to rectify the current situation. We expect repayments to begin flowing in the month of July. KEEF has 11,398 Euro of repayments that they have collected from borrowers, passed the entries on the MYC4 platform, but are yet to transfer to MYC4. Their current OLB currently stands at € 828,593.96.

YEHU – has continued to grow and has a portfolio of € 298,084.27. They have capacity to grow more on MYC4 platform, given that MYC4 funding is less than 10% of their outstanding loan book. They have remained consistent in their uploads; disbursing 34,788 Euros and making repayments totaling to 33,314.44 Euros in the month of June, their Par 30 stands at 0.00% on the platform.

Milango – Milango had a very good start on MYC4, disbursing an average of 55,000 Euros in the last three months. Milango started repaying in June even as they have reached the required OLB for a provider in the pilot phase. Their current OLB stands at € 162,045.07 and the repayment made for the month of June Total to 1,947.51 Euros with more expected later this week, their Par 30 on the platform is 0.80% We expect limited growth on MYC4 in the month of July as we require them to diversify their funding base; including injection of fresh capital by their shareholders.

SISDO -Current Portfolio stands at € 45,079.97. They continue winding down their portfolio, and in the month of June they paid a total of 18,692.03 Euros, Par 30 is 0.36%

Tanzania Providers

Tanzania has 4 providers namely Tujijenge Tanzania, Fanikiwa, BELITA and Mtaji Credit Facility Ltd. The providers in Tanzania are winding down their portfolios under a new model of direct transfer to MYC4 account in Europe. This measure was caused by the sudden government cancellation of the license of our money transfer agent, INTL Global Currencies, to get money out of Tanzania. The model is more expensive for our partners, so they are doing the transfers bi-weekly.

 

MtajifanikiwaTanzaniaBelita

 

 

 

 

 

 

Mtaji – Mtaji has 32,253 Euro of repayments that they have collected from borrowers, passed the entries on the MYC4 platform, but are yet to transfer to MYC4. Their portfolio at risk on the platform has deteriorated,(72.14%), because we are not allowing them to enter any repayments into our system until they remit all unremitted funds. We are pursuing them to rectify the position at the earliest. The total amount of repayments received in June is 7,082.55 Euros and their total portfolio currently is € 80,958.26, which is net of the unremitted repayments.

Fanikiwa – Fanikiwa’s monthly repayments after we pulled out of Tanzania, have increased compared to the prior period. The month of June saw them repay 21,251.56 Euros, and they are expected to continue with the weekly repayment in July up to until they finish repaying the portfolio, the current portfolio stands at € 57,005.51. Their PAR 30 is currently 17% but they are addressing it through more regular reconciliation exercise.

Tujijenge Tanzania – currently has a portfolio of € 129,498.79 with  a Par 30 of 4.33% on MYC4 and the month of June saw them repay a total of 43,792.14 Euros. It is expected that they continue repaying in the month of July. They are expected to group and transfer repayments of about 40,000 Euros this week.

BELITA -– is currently repaying the defaulted portfolio, amounting to 4,068 Euros. BELITA has experienced liquidity management and collection challenges in the past, but are making good effort to repay their entire portfolio (So far they have repaid 77% of their defaulted portfolio. MYC4 is currently waiting for confirmation for an amount totaling to 636.87 Euros. MYC4 is expecting more repayment from BELITA in the month of July.

Uganda Provider
Uganda has 3 providers namely Uganda Micro-credit Limited,(UMF), Tujijenge Uganda (TUG) and Gatsby limited.

umfTUGGatsby

 

 

 

 

 

 

 

Tujijenge Uganda – Has a portfolio of € 80,815.44 and continue to remit repayments every week. For the month of June, TUG has paid a total of 11,194.33 Euros. They have no portfolio at risk more than 30 days.
Uganda Micro-credit Foundation – UMF did not upload any loans on MYC4 for the entire month of June: They have diversified their funding sources to plug the gap left by MYC4 exit of Uganda. They however have continued repaying and in June they repaid a total of 48,743.01 Euros. Their current OLB stands at € 166,848.09 and they have no portfolio at risk more than 30 days.

Gatsby -Has a portfolio of € 154,546.69 which they continue to repay every week. Gatsby repaid a total of 29,365 Euros in the month of June. Gatsby has indicated their desire to clear their entire portfolio with MYC4 at the end of July. Their portfolio at risk more than 30 days on the platform has remained a challenge, (33.60%): They are working to improve on collections from borrowers and reconciliation of repayments with the MYC4 platform.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Read Full Post »

Older Posts »

%d bloggers like this: