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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 19th 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.

     Keef

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 .

 

Milango

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.

Yehu logo

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.

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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.

 

Mtaji

 

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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This post seeks to give an update on one of MYC4’s providers, Yehu Microfinance Trust.

In this previous post, we mentioned the latest scenario where pending repayments on investor accounts later ceased to appear. This is due to the fact that the Yehu Microfinance Trust staff inadvertently grouped all repayment amounts due without prior consultation with their Finance department regarding the amount collected and available for payment to MYC4.

Unfortunately, due to cash-flow constraints, they were unable to pay all the amounts grouped. Essentially, Yehu had factored in MYC4’s financing in their business plan for the year. The fact that they were not receiving any inflow, yet they are required to disburse new loans to the borrowers who clear their balance, placed a strain on their liquidity. Promise of a new loan is a big motivator for Microfinance institution clients to make repayments.

MYC4 has now entered into a repayment agreement with Yehu, whereby Yehu will pay Kes. 2 Million (approx 20, 000 Euros) monthly. The amount takes into account previous repayment history, reasonable payback period and also the realities at Yehu.

Yehu is a stable, operational, mid-tier microfinance institution in Kenya. Despite the challenges occasioned by MYC4’s change in strategy, MYC4 still considers Yehu to be a valued partner.

Thank you for your continued support.

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“When the history of African development is written, it will be clear that a turning point involved the empowerment of women.” – Sheryl Wudunn.

Several days ago I had the pleasure of meeting yet another mover and shaker in the micro finance industry. A man whose organization not only focuses on unshackling the community in the rural areas from poverty but also on empowering women in a patriarchal society. This inspiring man is none other than Adet Kachi, CEO of Yehu Microfinance Trust.

 

Adet Kachi, Yehu MFT CEO.

Adet Kachi, Yehu MFT CEO.

 

I had a one on one with Adet Kachi and this what he had to say;

Caroline: Hello Adet, tell me about Yehu Microfinance Trust.

Adet: Hello Caroline, well…

About Yehu Microfinance

Yehu logo

Yehu is predominantly rural based. It is a unique organization that has been brave enough to operate against challenges of poor infrastructure, low literacy levels and a poor economic environment of its clientele.

The organization is currently focused on serving the low income rural entrepreneurs and especially women within the Coastal region but eventually we plan to serve the ntire country.

In the rural areas, locals have challenges with accessing resources. It is not easy to access capital. There is the problem of inadequate infrastructure.

The community especially the women are marginalized and it is difficult to receive financial help. The Coast area is usually a patriarchal society and usually it is the men who hold economic leadership and dictate financial decisions.

This is where Yehu Microfinance Trust comes in. We seek to enhance their livelihoods and our vision is to take kenyans further than their circumstances allow them.

That sounds challenging, is it?

Well, we do experience some challenges. For instance some of our borrowers request small amounts of funds, but no matter the amount, we aim to deliver to our clients.

We go to the clients directly so you find our loan officers experience difficulties accessing the rural areas because of the underdeveloped infrastructure. They use all means necessary, be it bodabodas (motorcycles) or walking.

Additionally, at times some unavoidable circumstances, for instance terrorist attacks affect the clientele’s business directly and indirectly but with our support they manage to bounce back and avoid majority of the negative impact. It does have its challenges, but serving the people is an exciting and inspiring experience.

I am very much pleased with our contribution to society. Being able to empower people to live their destinies is an opportunity that not everyone is fortunate enough to achieve.

We are thankful when we are able to empower women. By empowering a woman, you add value to the household. Kofi Annan once said, “There is no tool for development more effective than the empowerment of women.”

How do you operate?

We are mostly in Coast province; Lamu, Voi, Mombasa and its environs. We have opened a new office in Makueni and we are moving to rural areas outside of Coast Province.

Yehu was created based on the principles and procedures of the world-renowned Grameen Bank and has adopted the Grameen Group Methodology.

There are policies in place to ensure that our clients continue smoothly with us. Yehu tries to establish very strong relationships with our clients.

All groups have assigned leaders and our loan officers support and guide these leader in managing their groups. We meet regularly with the group leaders for guidance and to hear any grievances and/or challenges they might be experiencing. We also conduct business training for our clients.

How is your partnership with MYC4?

We are pleased with our partnership with MYC4. Our clients are satisfied with the MYC4 loans they receive. We are  a team, when our clients have requests, we usually pass this on to our partner and we discuss and come with solutions that are favourable for all parties involved.

Conclusion

From my interview with Adet Kachi, I can tell he is a man of few words, but he makes the little he says count. It is also no secret that he is a well-respected,  highly experienced professional in his field. He is intelligent, resourceful, organized and passionate about empowering people, especially women.

This is great news for Kenyan women and the rural community in general. Yehu Microfinance Trust is destined for greatness because you can never go wrong when you take an active role in bringing positive change to the world.

 

 

 

 

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Below is an update of providers in the month of September.

Kenya Providers
Kenya providers paid a total of 67,271 Euros in the month of September, below is a break-down of which provider paid what and the general overview of their performance;

 

 

KEEFMilangoSisdoJubilant

 

 

 

 

 

 

 

KEEF –  is MYC4’s biggest provider with a significant share of our outstanding portfolio. We will update more specifically on the situation in a separate blog. In a nutshell, at the moment they are experiencing problems due to fraud by staff, and subsequent immediate action taken to address the fraud: The suspension of activity for a certain period to facilitate investigations meant that some repayments were skipped. We however remain optimistic that the situation will turn around – group meetings have now resumed.

Milango – This month saw Milango pay approximately 5,000 Euros. MYC4 suspended further uploads from them until they increase capitalization of the institution, and address issues. They are having disputes among key shareholders that are now in court of law. The OLB still stands at € 166,191.65 and the par 30 is at 79.17%. They have two grouped amounts totaling to about 15,000 Euros for which we are expecting payment.

SISDO –  is in the process of reconciling their records with MYC4s ; but in the meantime they have grouped the pay-off amount to clear their portfolio. This is expected to be received in October. SISDO management team has changed from the time of our initial engagement, and we hope to have positive discussions on re- engaging with MYC4.

YEHU – repaid a total of 60,494 Euros in the month of September, and has continued to upload loans every week. YEHU has potential to grow with MYC4 and MYC4 is therefore encouraging her to upload more on the platform. The current OLB is € 327,115.34 and has no loans on Par 30 and above.

Jubilant – so far has paid a total of 1,771 Euros and continues to pay on weekly basis. The pilot review for Jubilant has been done and they will have their limit increased. Their current OLB is €€ 80,608.66 and they currently have no loans on Par 30 and above.

Premier Kenya – MYC4 East Africa already had the wholesale loan disbursed to Premier Kenya for on-lending to their borrowers. We are pleased to have Premier Kenya on board now as a provider for the retail lending. Premier Kenya is growing well as it has good governance, good structures, and adequate capitalization.

Tanzania Providers

Tanzania providers repaid as depicted below.

 

 

MtajifanikiwaTanzania

 

 

 

 

 

 

 

 

 

Mtaji – repaid a total of 8,139.91 Euros in the month of September. The current OLB is € 80,958.26 and the par 30 still remains at 100%. .

Fanikiwa – repaid their entire portfolio to MYC4 in this month and MYC4 wishes them all the best in their endeavors.

Tujijenge Tanzania – repaid a total of 42,537.69 Euros in the month and they are in the process of reconciling their accounts so that they pay-off the entire amount by the end of October. The OLB currently stands € 49,071.90 with a par 30 of 53%.

Uganda Providers

Uganda providers repaid a total of 23,350.58 Euros in the month, below is a breakdown;

 

 

TUGumf

 

 

 

 

 

 

 

 

 

Tujijenge Uganda – repaid a total of 8,104.41 in the month and is expected to continue paying every week until the portfolio is fully repaid. The current OLB currently stands at € € 65,297.37 and par 30 is 70%

Uganda Microcredit Foundation – repaid a total of 15,246.17 Euros in the month. Their current OLB is € 78,568.39 and they have no loans on par 30 and above. A grouped amount of around 25,000 Euros was grouped and is expected in the month of October.

 

 

 

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August has been a rather slow month in terms of repayments and below is an update on the countries. September however looks more promising…
Kenyan Providers

KEEFSisdoMilangoJubilant

 

 

 

 

 

 

KEEF – The provider started the month by repaying  KES.610,365.21 (5,186 Euros)  and later in the month grouped two amounts totaling to KES.735,540 (approximately 6,296 Euros).   This is however yet to be received by MYC4 and we are hopeful it will be receive in the month of September. The PAR 30 has remained at 100% and currently the portfolio stands at € 835,036.36. MYC4 is in dialogue with KEEF on a transparent way to make sure that repayments received are repaid to investors.

YEHU – Continues to upload every week although uploads have significantly dropped but they have promised to upload more in September , the repayments are timely and the Par 30 is at 0%. Their current OLB is € 319,972.59 and has potential to grow.

SISDO – The provider is working on a way to pay off the portfolio and are in the process of reconciling, MYC4 is looking at possibilities of having SISDO come back on the platform, more information on this shall be communicated once the a concrete decision has been made.
Milango – The Par 30 declined this month and is currently at 14% , MYC4 is working with Milango too make sure that repayments are entered once received and that transfers are done in a timely manner. Milango’s AGM is around the corner and they will be looking at ways of sourcing for funds from other lenders so as to grow in portfolio enough to start uploading on MYC4. MYC4 is currently 30% of Milango which is the limit.
Jubilant– Our newest provider started repaying on MYC4 loans late in August, they continue to upload loans every week. There current OLB is € 42,107.60 and their Par 30 is at 0%. A pilot review will be performed on the provider later in the month of September as the pilot period comes to an end.

Uganda Providers

GatsbyTUGumf

 

 

 

 

 

 

 

 

Gatsby – The provider fully paid off the portfolio in the month and MYC4 wishes Gatsby well in all their endeavors.

Tujijenge Uganda limited – The Par 30 deteriorated towards the end of August and is currently standing at 20%, after audience with MYC4, Tujijenge uganda agreed to be transferring an amount of approximately € 1300 every week for the reminder of the OLB which stands at € 73,543.07. This week MYC4 received  € 3,953.41 from Tujijenge Uganda which was supposed to have been confirmed last week but was not.

Uganda Micro-credit Foundation – has been continuing repaying the MYC4 portfolio and in the month of August repaid a total of € 24,525.52 and they are expected to continue with that trend till they finish repaying the entire portfolio. Their current OLB is € 102,744.57 and Par 30 stands at 0%.

Tanzania Providers

MtajifanikiwaTanzania

 

 

 

 

 

 

 

Mtaji – After a meeting with MYC4, Mtaji has committed to paying approximately €6,977 every month in the process of repaying the portfolio. This monthly installment will be increased once Mtaji gets funding from other lenders; they are currently looking for funding sources to replace the gap MYC4 left.  This week a total of approximately € 6,900 is expected to be received from Mtaji. The institutions current OLB is at € 80,958.26 and Par 30 is at 100%. This is expected to be a start to consistent  repaying by the institution, MYC4 is also closely monitoring the default situation to make sure that no loans are defaulted.

Fanikiwa – The institution repaid a total of € 12,503.54 in the month of August and continues repaying every 2 weeks. The OLB currently stands at € 28,824.05 and the Par 30 stands at 31% – MYC4 is working with Fanikiwa to ensure they Par 30 drops to acceptable levels even as they continue making repayments.

Tujijenge Tanzania – The institution repaid a total of € 46,022.70 in the month of August and they are expected to pay a similar amount in the month of September. The OLB stands at € 98,588.43 with a Par 30 of 49% , Tujijenge is working on reducing the Par 30 even as they continue repaying the reminder of the OLB with MYC4.

 

 

 

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Kenya Providers

We shall have a look at the providers in Kenya, these are KEEF, YEHU, Milango, SISDO and Microkenya.

YehuMAL_septKEEFSisdoMilango

 

 

 

 

 

YEHU has continued it’s positive trend on MYC4, the OLB has however dropped from €310,116 in April to €299,522 in May. YEHU’s uploaded €31,114 worth of loans in May. YEHU is expected to grow further in future as MYC4 is currently only 9% of their own total OLB.

KEEF is currently at the loan portfolio ceiling of the B provider (750,000 Euros as per the license limit). Hence uploads are currently paused till the OLB is within the class limit again.

MicroKenya who exited from MYC4 continues to repay their portfolio. Their current remaining OLB on MYC4 is € 2,412 and they are expected to continue repaying to the end.

SISDO also continue to repay their portfolio after the mutual decision to terminate the partnership in early 2014. Their OLB currently stands at €53,807 and their weekly repayments continue to be received regularly.

Milango is as expected about to attain the maximum OLB for a pilot provider which is €150,000 hence MYC4 is scheduling a pilot evaluation later in the month of June. Hereafter Milango will hopefully be given a go ahead to upload as much there is required for a C class provider (maximum of 350,000 Euros) depending on the pilot evaluation outcome and the requirement that their portfolio on MYC4 does not go beyond 30% of their outstanding portfolio.

Uganda Providers

In July MYC4 exits from Uganda, hence no loans from Uganda will be uploaded on the MYC4 platform from 1st July. Below is an update of how the providers are fairing on despite MYC4 plans to exit the Ugandan market.

TUGGatsbyumf

 

 

 

 

 

 

 

Tujijenge Uganda continues to upload loans every week, the repayments come in every week and they have continued they continue compliance with MYC4 policies, their current OLB stands at €67,055.

Gatsby was paused last year due to issues with the PAR 30 being too high, as well as other internal organizational challenges they were facing. So far they have continuously been transferring repayments, their OLB currently stands at €174,847.

Uganda Micro-credit Foundation occasionally uploads on MYC4, they have continued transferring repayments every week and their current OLB stands at  € 178,737.

 

Tanzania Providers

Providers from Tanzania were paused from uploading on MYC4 in April as MYC4 pulled out of the Tanzanian Market. Below is an update of how the providers fair on in terms of repayments, we look at;  Tujijenge Tanzania, Mtaji, Fanikiwa and BELITA.

TanzaniafanikiwaMtajiBelita

 

 

 

 

 

 

Tujijenge Tanzania had initial challenges with the new way of transferring repayments to MYC4 after INTL closed shop in Tanzania. However as of last week, they have started transferring and it is believed that they will continue on the same trend, Tujijenge’s portfolio now stands at €129,498.

Fanikiwa Microfinance company Limited has been transferring repayments in good time, however their PAR 30 has been high. They have been working on reducing it and it has now gone down from 50% to 13%. Fanikiwa’s OLB currently stands at  €67,373

Mtaji Micro-credit Facility has been having challenges with the new ways of transfering, it is believed that this will change soon, Mtaji’s current OLB is €80,958.

BELITA

Belita has fully paid the OLB, however they are now in the process of paying for the defaulted amount which amounts to €3770.61

 

Potential Providers

MYC4 has been searching for new providers in Kenya and at the moment there are two potential providers. These are;

REMU DTM Ltd – REMU Deposit Taking Microfinance Limited (REMU DTM) is a Kenyan micro finance company licensed by the Central Bank of Kenya under the Micro Finance Act and Regulations (2008). The due diligence has been done and and we are hoping to get started soon.

JUBILANT Kenya Ltd (JKL) – Jubilant is a Kenyan micro finance company based in Mombasa. It was incorporated on 11th May, 2012, it specializes in offering financial services to all the sectors targeting mainly the rural areas with the aim of unlocking the potential that lies in those areas. The effect of this will be improved livelihoods and subsequently wealth creation for borrowers. MYC4 is currently reviewing the Due diligence of Jubilant and will proceed with them subject to a positive outcome.

 

 

 

 

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Kenya Providers

Milangoyehu picSisdo pic

Milango‘s OLB currently stands at 86,758.22 Euros, and it continue to grow with more loans uploaded every week. MYC4 is currently working with Milango so that they can top up the risk guarantee to enable them upload more. If the current trend of uploads continues, then Milango’s pilot review may be done sooner than the six months pilot period. The month of April saw MYC4 disburse 59,216 Euros to Milango, which is a good growth sign.
YEHU continues to grow, a growth most welcome by MYC4 as it starts its focus on Kenyan providers. Also, YEHU portfolio is only 14% of MYC4’s total portfolio, hence there is more room for growth. YEHU’s current OLB is 303,901.63 Euros, and 21,541 Euros was disbursed in the month of April.
SISDO – MYC4 and SISDO have amicably decided to end the relationship. SISDO had been having challenges with the MYC4 model; and have furthermore have recently attracted a size-able amount of funding on fixed term from other funders in the region. SISDO will continue with weekly repayments to run down the portfolio.

Tanzania Providers

Belita picFMCL_augustMtaji_augustTTZ_july

 

As you are aware, MYC4 is closing shop in Tanzania, MYC4 therefore after consulting came up with a repayment strategy for its providers in Tanzania. These providers are to pay directly to the MYC4 foundation account, first, they have to negotiation for a good exchange rate from their prospective banks. The amount is thereafter processed in the MYC4 system and hence investors get their repayments. The providers have agreed to transfer the repayments twice every month so as to minimize on the transfer cost incurred. So far all the providers in Tanzania are trying their best to negotiate for the best rates from their banks and to also transfer the amounts without delay and some have succeeded and MYC4 hopes that the rest perfect the process as they become more familiar to it.

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