Provider Update

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.

     

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.

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

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.

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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Provider Update October 2016

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

     

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.

Yehu

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

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.

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.

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Provider update August 2016

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

     

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.

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 .

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 .

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.

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Provider Update June 2016

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

     

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.

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.

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.

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.

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Provider Update May 2016

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.

 

     

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.

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.

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.

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.

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.

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Provider Update March,2016

Kenyan Providers

KEEF

The arbitrator has since issued an award on the KEEF/MYC4 Arbitration.

The Arbitrator  after careful consideration of the statement of claim together with the adduced documentary evidence, witness statements and oral presentations and other factual materials shared during the process   found that  MYC4’s  claim against KEEF had basis and thus  awarded  MYC4 the full amount of claim, costs  , reimbursements and interest on court rates effective from the date of the award.

The next step as advised by our lawyers is to make application to the high court for a judgement based on the award to enable execution .

After the court issues the judgement / decree, this will be used to carry out the execution against KEEF and related parties.

In readiness for this MYC4 has since contacted a professional private investigator to carry out investigative work on KEEF, Daniel and related parties as mentioned in the award.

MYC4 has also engaged services of a reputable Auctioneer firm to execute recovery immediately upon receipt of the judgement/Decree and the investigation report.

Civil case is still ongoing at the High court-Commercial Division. The last session was on 19^th February 2016 in which  the application by third parties to be enjoined in the suit was thrown out by the Court on the ground that it lacked legal basis. MYC4 has since filed to withdraw its earlier application to move the case to arbitration since this has already been taken by events, i.e the arbitration completion and award issuance.

MYC4’s eventual goal is to convince the Court to stop the case since the issue of contract validity that is in contention has already been dealt with in the Arbitration proceeding and as such termination of the case at this point in time will be saving the court and the parties alike time.

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.

MYC4 to this end has enlisted the support of the Danish Ambassador in ensuring that the process does not stall in which case his office can be in-touch with the office of the DPP to find out the status of the review.

MYC4 also sought the support of the Embassy on other possible measures against KEEF and Daniel since the arbitration has established culpability of said parties ,including travel bans and possible extradition of the parties using due process for trial outside Kenya.

     

Milango

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

They have since contacted all borrowers with outstanding loans and are working to establish who has outstanding loans and who has since completed paying the loan to Milango in which event they will be seeking to establish repayment plans with those who acknowledge the debt and advise MYC4 on which component to pursue Milango as an institution based on the Guarantee and Contract signed during formalization of the partnership.

MYC4 has also made a meeting with the Milango Board members who reiterated their intention to repay MYC4 obligation once they restart operation. They indeed confirmed that they are aware of the debt collection agency and are committed to cooperate .

 

Yehu

Yehu has indicated that they are yet to come out of the cash flow constraining regime and have reiterated their willingness to enter into a new repayment plan based on the foregoing circumstances to ensure that they eventually repay the entire outstanding amount to MYC4 investors. MYC4 still  trusts that YEHU has genuine  intention to repay their obligation as and  when cash flow position improves.

Jubilant Kenya Limited

MYC4  agreed  to adjust Jubilant’s  repayment plan  to fit capital and loan injections from third parties in the coming months. This will ensure that they clear all the outstanding loans before the end of the year as promised. MYC4 will work closely with the Jubilant team to ensure that the new agreement is fully executed.

 

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.

The parties have also sought the support of the Tanzania Micro finance Institutions Association(TAMFI) whose membership Mtaji belongs to ensure accelerated settlement of the debt.

 

 

BELITA

MYC4 has also been working in close collaboration with the Debt collection Agency  to pursue the collection of the outstanding from BELITA.

The founder  and Managing director of BELITA  indicated to MYC4 that BELITA  acknowledges the debt and is willing to settle its obligation soon.

MYC4 and the debt collection agency is also working in close collaboration with TAMFI to ensure accelerated settlement of the debt.

 

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Provider update February 2016

Kenyan Providers

KEEF

The arbitration hearing took place on 28^th and 29^th 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 19^th 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.

     

 

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.

 

 

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.

 

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.

 

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.

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Provider Update January 2016

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

 

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.

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.

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.

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.

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March Provider Update

Below is an update on providers for the month of March.

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. Additionally, MYC4 contacted KEEF borrowers who had received MYC4 loans. Majority of KEEF borrowers indicated surprise at having being informed of their loan balances with MYC4. From their testimonies it has come to our attention that most if not all of the borrowers had cleared their loans months or years prior and had submitted all due repayments to KEEF, who have not remitted these funds to MYC4.

 

Milango – Their PAR 30 currently stands at 99.99 %. We received repayments from Milango amounting to  2,518.64 Euros.

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, Kes. 9.2 Million of investor funds that was collected from borrowers repaying MYC4 loans.

MYC4 had a Finance and Strategy meeting with Milango management team and we have come to the agreement that the collection made on repayments should be remitted on a weekly basis as they work on how to fully repay the Kes. 9.2 million.

In a few weeks time, the MYC4 team will be going to Milango offices in Mombasa for a follow up.

Once this exercise is complete, we will provide more updates.

 

 

YEHU – Their PAR 30 currently stands at 49.53%. We received repayments amounting to 40, 496.53 Euros from YMT for the month of March.

 

Jubilant Kenya Limited – Their PAR 30 currently stands at 16.18%. We received repayments amounting to 6, 884.27 Euros from Jubilant Kenya Ltd for the month of March.

 

Premier Kenya – Their PAR 30 currently stands at 0%. We received repayments amounting to 428, 537.59 Euros from Premier Kenya for the month of March.

 

Tanzania Providers

Mtaji – Their PAR 30 currently stands at 0%. We did not receive repayments from Mtaji for the month of March.

 

Uganda Providers

Tujijenge Uganda -Their PAR 30 currently stands at 99.95%. We did not receive repayment from Tujijenge Uganda for the month of March.

Uganda Microcredit Foundation – Their PAR 30 currently stands at 0%. We received repayments amounting to 29, 503.68 Euros from UMF for the month of March.

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Newspaper Notice

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

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