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Provider Update

Below is a follow up update on providers from Mid August.

Kenyan Providers

KEEF

Arbitration process in ongoing. MYC4 has taken further steps and contacted all the licensed Credit Reference Bureaus in the country .This is expected to put more pressure on Daniel and KEEF. Pre-listing notification has already been issued to Daniel and KEEF and as required by law after 30 days MYC4 will formally list the two parties with the bureaus. See the notices to KEEF and Daniel Kimani here

 

 

 

Keef

Milango

Milango is in the process of retrieving and transferring loan files to MYC4 offices. As indicated earlier MYC4 has already held talks with the debt collector and he is going to start collection exercise immediately the files are handed over to his possession.

Milango

Yehu

Despite the fact that Yehu continues to experience liquidity strain in meeting funding demands from their clients after MYC4 time out, they have honored their August repayment in accordance to the repayment agreement .

Yehu logo

Jubilant Kenya Limited

Jubilant has been experiencing some cash flow constraints. However, in addition to the guarantee fund released to investors earlier, jubilant has agreed to continue repaying a fixed installment until their cash flow position improves. This is expected to take place by November this year after which the repayment installment will be increased.

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Tanzania Providers

Mtaji

Mtaji has made their July repayment to MYC4 and is following up with the August repayment.

Mtaji

 

Uganda Providers

Tujijenge Uganda

TUG has continued to honor their repayment agreement. Additionally, they have indicated that they are making arrangements to ensure they fully repay their loans on or before the end of this year, 2015.

TUG

 

MYC4 has taken further step to contact all the licenced Credit Reference Bureaus in the country to put on more pressure to Daniel and KEEF and also provide the information to the market. Prelisting notification has already been issued to Daniel and KEEF and as required by law after 3o days MYC4 will formally list the two entities with the bureaus.

NOTICE TO KEEF KENYA

 

THE CHIEF EXECUTIVE OFFICER,

KENYA ENTREPRENEURSHIP EMPOWERMENT FOUNDATION-

(KEEF-KENYA)

MAPA HOUSE 3RD FLOOR

P.O BOX 648

KIAMBU

 

Dear Sir,                                                       

 RE: INTENTION TO SUBMIT NEGATIVE INFORMATION PURSUANT TO REGULATION 25 (1) OF THE CREDIT REFERENCE BUREAU REGULATIONS, 2013

Reference is made to the above.

We note with regret that you have failed to act on our various requests to you to regularize your debt with us.  We hereby wish to notify you that your details and that of KEEF will within thirty (30) days from the date hereof be forwarded to all licenced Credit Reference Bureaus for listing and consequently you shall generate an adverse credit worthiness record.

Upon disclosure to a Credit Reference Bureaus please be advised that your information will be used by banking institutions, the micro finance banks and credit grantors in assessing applications for credit or account opening by you, debt tracing and fraud prevention purposes and may affect your ability to obtain and / or maintain existing facilities with banking institutions and other credit grantors.

Yours sincerely,

 JES COLDING

CHIEF OPERATIONS OFFICER

MYC4 A/S

 

 

NOTICE TO DANIEL

 

DANIEL KIMANI,

C/O KENYA ENTREPRENEURSHIP EMPOWERMENT FOUNDATION-

(KEEF-KENYA)

MAPA HOUSE 3RD FLOOR

P.O BOX 648

KIAMBU

Dear Sir,                                                       

 RE: INTENTION TO SUBMIT NEGATIVE INFORMATION PURSUANT TO REGULATION 25 (1) OF THE CREDIT REFERENCE BUREAU REGULATIONS, 2013

 

Reference is made to the above.

We note with regret that you have failed to act on our various requests to you to regularize your debt position with us with respect to your directorship in KEEF-Kenya.

We hereby wish to notify you that your details will within thirty (30) days from the date hereof be forwarded to all licensed Credit Reference Bureaus for listing and consequently you shall generate an adverse credit worthiness record.

Upon disclosure to a Credit Reference Bureau please be advised that your information will be used by banking institutions, the micro finance banks and credit grantors in assessing applications for credit or account opening by you, debt tracing and fraud prevention purposes and may affect your ability to obtain and / or maintain existing facilities with banking institutions and other credit grantors.

Yours sincerely,

 JES COLDING

CHIEF OPERATIONS OFFICER

MYC4 A/S

 

A Kenyan business newspaper, the Business Daily recently published MYC4’s story about the KEEF fraud situation.

The article can be found online here Danish Firm stops Kenya SME funding after fraud claims

 

Presentation1

Business Daily Newspaper Article 17/08/15

Provider Update

Below is an update on providers up until Mid August.

Kenyan Providers

KEEF

In our last update, we wrote that MYC4 awaits the commencement of arbitration. The arbitration process on the KEEF/MYC4 dispute has commenced and is currently in progress. MYC4 has provided substantial documented evidence to support its claims. KEEF owes MYC4 investors money to the tune of almost a million euros. These documents also show considerable evidence that in some instances KEEF did not transfer funds given by investors for African entrepreneurs to the borrowers. In many instances, KEEF also did not repay MYC4 investors the funds repaid by borrowers. Additionally, testimonials/statements from KEEF borrowers reveal that KEEF has not been paying back savings deposits to borrowers.

Investigations by the Kenyan Criminal Investigations Department are also in progress. MYC4 is counting on the Kenyan judicial system to work fairly and with haste. We anticipate that the arbitrator will have a ruling in the next few months.

Keef

 

Milango

MYC4 has terminated its partnership with Milango Financial Services. This is mostly due to the delay in repayments as well as the lack of commitment by Milango to a repayment schedule. MYC4 has instructed Milango to submit their MYC4 portfolio files so that they can be presented to professional debt collectors. A debt collector has already been identified and discussion are ongoing on how to proceed with the exercise.

 

 

 

Milango

 

Yehu

Unfortunately, the recent and current Time-out has led to Yehu experiencing some difficulties. This is partly because Yehu had expectations of utilizing the MYC4 funds to loan to borrowers. MYC4 and Yehu have since come to an agreement of  a fixed, guaranteed monthly repayments which they are already honoring.

 

Yehu logo

 

Jubilant Kenya Limited

Unfortunately, the recent and current Time-out has led to Jubilant experiencing some difficulties. This is partly because Jubilant had expectations of utilizing the MYC4 funds to loan to borrowers. MYC4 and Jubilant have since come to an agreement of  a fixed, guaranteed monthly repayment. In addition, Jubilant has agreed to have their Guarantee deposit be paid back to MYC4 investors without delay. These funds will be processed and paid back to MYC4 investors with immediate effect.

 

Picture1

 

 

Tanzania Providers

Mtaji

Mtaji have honored the January agreement up till July. They have now promised to catch up and pay by the end of next week.

Mtaji

 

Uganda Providers

Tujijenge Uganda

Tujijenge Uganda has honored the repayment agreement and are looking to increase the monthly installments so that MYC4 lenders can expect to see them finalize their outstanding repayments in the coming months.

TUG

 

MYC4 would like to inform you, our investors that we are aware of the numerous requests for information on when you will be able to commence lending and investment activities on our platform. We understand that you are eager to continue funding African entrepreneurs who are working hard to better their lives.

Unfortunately, we are unable to commence lending activities on our platform until we have secured the substantial funds owed by our former provider KEEF Micro finance. We have had to prioritize our resources to secure these funds as well secure recoveries from our other providers. The KEEF/MYC4 dispute process has been drawn out but we anticipate a favourable ruling in the next few months and before the end of 2015.

In addition to the difficulties that borrowers would experience due to the absence of such a large amount of funds on the lending platform, we are working tirelessly to recover the nearly one million euros owed to MYC4 investors in order to regain the trust and confidence of our investors who have played a major role in improving the lives of African entrepreneurs.

MYC4 thanks you for your continued support. There shall be more updates as the situation continues to unfold.

The MYC4 A/S Annual Report for 2014 can now be accessed on our website www.myc4.com 

The MYC4 Foundation Annual Report for 2014 has also been uploaded.

Click the link below to be view these and other similar reports.

https://myc4.com/About/PRESS

Keef

In our last update on the KEEF situation, we informed you that MYC4, through its lawyer applied to the High court of Kenya for orders to take the dispute to arbitration since this was provided for in the Loan provider and Admnistrator Contract signed between MYC4 and KEEF. In this post we seek to update you on the developments since the application for arbitration.

The court granted MYC4 the orders and referred the matter for arbitration irrespective of the ongoing court case, as the Arbitration law provides for such. Effectively, the arbitration process causes stay of other proceedings concerning/related to the same dispute.

MYC4 through its lawyer wrote to the Chairman of Kenya Arbitration Council informing him of the court decision and requesting for appointment of an arbitrator. The Chairman indeed acknowledged receipt of the same and confirmed that he will appoint an arbitrator. The Chairman appointed an arbitrator for the matter.

Upon appointment as arbitrator of the MYC4/KEEF dispute, the arbitrator, in writing, invited both parties for a meeting with him on 25/6/2015 (today) to take direction on how to proceed with the process.

KEEF did not appear for the first arbitration meeting today. MYC4 expressed their concern about the delay tactics of the other party. The arbitrator will inform both KEEF and MYC4 in writing about the next meeting to be convened in seven days. Since there have been no court orders staying the arbitration, MYC4 expects that the proceedings will continue uninterrupted, regardless of KEEF’s position.

We shall update you on any new developments. Thank you for your continued support.

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