Big things have small beginnings

Behind every small business, there’s a story worth knowing. All the corner shops in our towns and cities, the restaurants, cleaners, gyms, hair salons, hardware stores – these didn’t come out of nowhere – Paul Ryan.

I found Patrick Ngamaini’s story definitely worth knowing. Patrick is one of MYC4’s borrowers through our provider Premier Kenya. I met Patrick at his little shop in Kawangware and I must say I rather enjoyed my talks with this vivacious and ambitious businessman. It is clear to anyone who talks to Patrick that he has big dreams for himself and his business. He tells me that his small beginning is not a hindrance to his dreams but a motivation to attain financial freedom.

Patrick at his shop in Kawangware

How did you hear about MYC4?

I heard about MYC4 in 2014 through the Premier Kenya, loan officer who came to explain to my investment group/chama how MYC4 works,

How has the MYC4 loan helped you?

The loan I received from MYC4 has helped  me acquire the funds I needed to run my business. I use the funds to buy my stock of consumer goods which i restock frequently because they are fast moving items.

What problem were you facing that MYC4 have helped you to solve since you received the funds?

One problem I was facing was the lack of ready and available capital to run my small business especially with the stringent borrower demands that large financial institutions have put in place. These requirements usually do not favour us small entrepreneurs. However, since I received my funds I have been able to effectively run my shop and fulfill my customers needs.

Have the funds you borrowed increased your profits or income, and have you employed anyone?

Since I received the funds my business has been running well and I have a fair source of income.. The funds have allowed me to continuously have stock and continuously make sales. In my business of selling consumer goods especially on a small scale as I am currently doing, the profits do not immediately reflect, but with continued sales, I will eventually have a tidy sum. Currently, I cannot afford to employ anyone but I hope to be able to soon.

What did you like about MYC4? What is the experience of working with MYC4?

The one thing I have liked in the short time I have worked with MYC4, is that the funds were received within my preferred time-frame and I did not have to wait for an overextended period. Additionally the interest rate is fair and the duration given to make repayments is reasonable.

What would you like people to know about MYC4?

I would like to let people know that MYC4 helps many men and women to boost their small businesses. Whether you are starting or already running a small business and you have little funds, do not be discouraged, MYC4 can help you make your business dreams a reality.

Would you recommend MYC4 to your friends or family?

Definitely. Other than my group members, I also know of some men and women here in Kawangware as well who are benefiting from MYC4 loans.

Would you consider taking a second loan once you clear this loan?
I would. I would like to grow my business even more and possibly relocate to a bigger space, stock more goods and  and eventually hire people to help with sales. If my business grows bigger, I would like to venture into other bigger, business industries such as real estate and transportation.

Do you have any additional comments?

I would like to thank MYC4 for the opportunity they give business people such as myself. MYC4 empowers us to grow and develop as people as well as business people and we urge you to continue supporting entrepreneurs. I would urge MYC4 to add more funds to trusted borrowers and to additionally finance investment groups as a whole.

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Catching up with Kevis Auto Spares

Meet Kennedy Macharia, a client at KEEF who has a spare part shop called Kevis Auto Spares along Langata Road in Nairobi, Kenya. Kennedy has been in this business for the last two years, and KEEF has seen Kennedy’s business grow to its current level, with two branches and still hoping to open more shops.

Kennedy’s MYC4 loan of €317 was funded by 26 investors at 9.93% and was paid back in 6 months. His final repayment was on August 21st and Kennedy immediately applied for another loan of €990 which was successfully funded by 25 investors and is just about to be disbursed to him.

We wanted to hear a little more about what Kennedy thinks about MYC4, what he has achieved with the loan, and his future business plans. Here is what he had to say:

How did you hear about MYC4?

I heard about MYC4 from my sister and cousin who both had received loans through MYC4.

What did you use the loan for? And has the loan helped you grow your business?

I bought spare parts to meet my customer’s needs, this has helped me to grow a bigger customer group. With the loan I was also able to open another branch. The spare parts I bought had a very high demand since they are not found in other shops around my area.

Have you been able to hire new employees after you received the loan?

Yes, I have hired one new employee in the shop, and because of the business growth I have also been able to hire house help.

How do you find our interest rates compared to other MFIs in Kenya?

I think the interest rates are good and I liked the loan repayment schedule because I was able to pay my repayments in the middle of the months, which is less chaotic since by that time I usually have cleared my bills.

Did you find any difficulties in repaying your loan?

I didn’t have problems repaying the loan because the demand of my products was high and my business grew hence enough profit to repay my loan.

What are your future business plans?

I want to increase my business by opening more branches and in this way be able to send my kids to good schools.

Do you plan on getting another loan from us? And what would you use it for?

I have already taken a second loan, and I plan to apply for another bigger loan when I have repaid this.

Would you recommend MYC4 to friends and family?

Yes, one of my friends has applied for a loan and hopefully if approved, he is going to open his first loan on MYC4 at the end of this month.

Do you have any additional comments?

I have been very glad to have the opportunity to borrow money though MYC4, because this has given me a new chance to grow my business and have also been able to create employment in the society which is very full filling.

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Micro Africa has resumed uploading loans from Kenya

We’re pleased to see that investors can once again lend to entrepreneurs in Kenya through Micro Africa Ltd.

Right now Micro Africa has six new Kenyan loans open for bidding – and from what we’ve heard many more should be on the way. For instance there’s 26-year-old Ann who runs a retail shop and hopes to hire an assistant once her business expands. And there’s 44-year-old Daniel Ngumba who’s looking to buy two more cows.

One of Daniel Ngumba's cows

The platform has been slow on Kenyan opportunities for the last six-eight months. In fact Micro Africa hasn’t uploaded loans from Kenya for almost 1 year. So why did they decide to come back to the MYC4 platform?

James Mugambi, Executive Director of Micro Africa, explains:

– We have resumed posting loans on the MYC4 platform following the stabilisation of the Kenya shilling currency against major international currencies because we have always believed that MYC4’s way of raising Loan Capital for MFIs is very efficient.

– We as Micro Africa Directors do not have to spend a lot time and resources fundraising for working capital of our operations but can now instead concentrate in lending and Product Development. Our experience in fundraising from banks and other international funders take average of 6-8 months before we conclude the transaction. So MYC4’s platform is always a great relieve when it comes to accessing funds for our clients.

Micro Africa is not the only provider who’s active in Kenya. KEEF joined the platform last week and has already uploaded more than 40 loans. Read more about KEEF in this blog post or on their new provider profile.

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