August Provider Update

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








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










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









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.




July Provider Update

July is the month that saw the first ever wholesale loan on MYC4 fund which is a great milestone. Jubilant Kenya also joined  the list of Kenya MYC4 providers in the month. Below is an update on how the other providers are fairing…

Kenya Providers













KEEF – As you are aware KEEF experienced Fraud in the recent past hence the deterioration of their par. In the last 2 weeks of July, KEEF has been working on ways to reduced their PAR 30 and have had repayments of 5,186 Euros. They are expected to continue with repayments every week as was before and this week MYC4 is expecting approximately 3900 Euros from them.

SISDO – has continued repaying the portfolio and there currently have an OLB of  € 34,646.44  with a par 30 of 2.87% .

Milango – reached its ceiling as per our policy. After the evaluation it was noted that their total PAR30 both internal and on the platform for the organization was high and therefore they were given some time to rectify the situation which they are progressing well. In addition, MYC4 is almost 30% of Milango’s total OLB, which is the ceiling. Milango will be having an AGM this month where the shareholders will discuss and approve more funding for Milango to give them more leverage to borrow.

Jubilant Kenya – The youngest kid on the block is doing well, and currently has an OLB of € 16,491.00 and a Par 30 of 0%. They are expected to upload loan equivalent to € 12,500 a month.

Tanzania Providers










Tujijenge Tanzania – The month of July saw Tujijenge pay a total some of € 42,639. They have agreed to be transferring repayments every month, this will enable them reduce the portfolio and also regulate Par 30. Tujijenges OLB stands at € 139,701.32 with a Par 30 of 49%.

Fanikiwa- has been gradually repaying the portfolio every bi weekly, the Par 30 currently stands at 21% with an OLB of € 36,864.38. This week MYC4 is expecting repayments amounting to € 6,000.

Mtaji – July saw Mtaji transfer repayments of € 4,334.50, it is expected that they will continue repaying the portfolio in the months to come. Their OLB currently stands at€ 80,958.26 and Par 30 is 100%. Mtaji is working hard with the help of MYC4 staff to see the Par 30 is reduced and that repayment of the portfolio is back on track.

Uganda Providers












July saw MYC4 Officially pull out of Uganda a few months after pulling out of Tanzania while strategizing to remain in Kenya. The uganda providers have continued repaying their portfolio as expected.  Uganda Micro credit Foundation and Tujijenge Uganda transfer their repayments in good time and their current OLBs are € 138,186.40 and € 69,823.75 respectively and the Par 30 for both is currently at 0%

Gatsby – is in the process of paying off the portfolio , so far they have grouped all their repayments and have transferred half of the amount.




Dear investors,

20131125_091157-3It has been over a couple of years since KEEF established a formidable partnership with MYC4. A partnership that has over the years been of immense benefit to both partners. Over this period KEEF has managed to adequately serve over 1000 businesses by providing them with affordable loans all thanks to you the investors, making you part of the development of lives of business owners directly and those that earn a living from the same business. Investors have helped and enabled Kenyans whom had limited access or no access  to credit find a channel to finance their businesses through the partnership. As far as the partnership goes it can be termed as a success.

However, as with all growing institutions, there are challenges that are experienced in the due course of the operations. These challenges are inevitable and with much dedication and proper management they enable these institutions re evaluate how they work, and adapting to the constantly changing environment of doing business.  Currently, KEEF has been experiencing such challenges. Several staff members have in recent times been implicated in fraudulent matters and the necessary investigations have been launched by Kenya police to ensure that they are held accountable for their actions. In addition to this, it will serve as a lesson for KEEF being a growing institution on better ways and modalities to safeguard its client’s interest as well as the immense responsibility to all lenders. As an institution we remain committed to ensuring that this formidable partnership forges on from strength to strength for the benefit of all stakeholders. In these regards the repayments for unaffected loan have resumed with a wire transfer of KES 610,356.22, with subsequent weekly repayments resuming as continue to restore normality. We painfully regret the inconvenience caused .


Best regards,

Daniel Kimani, CEO of KEEF



With the exit from Tanzania and Uganda, MYC4 is now focusing on having many and new partnerships in Kenya, it is in this connection that we introduce our newest partner, JUBILANT KENYA LTD.

JUBILANT KENYA, registered as JUBILANT KENYA Limited (JKL) is a private limited liability company based in Mombasa, Kenya. It is aPicture1 company that is working towards becoming a community microfinance bank and it offers products and services to its customers who are low income earners (both men and women), mostly from the Kenyan Coastal and Eastern regions. It  was incorporated on 11th May, 2012 as a Credit only Microfinance Institution and in April 2013, a company by the name Jubilant Capital limited was incorporated to deal with the investments business. It has a total of six directors and a strong team of staff who deal with the day to day activities of the company, the managing director is Mr. Cyprian Kilonzo Kimunyu. By availing financial services to the marginalized in the rural areas, Jubilant Kenya plays a role in the eradication of poverty in the community which is a major challenge in many developing countries in Africa, and also promoting economic growth in the society.


Being strategically placed for human empowerment through developed and tailor-made relevant financial and business solutions which transform lives and build capacity to grow our members in to financial freedom through professionalism, integrity,accountability and being community centered.


Transforming lives through customized financial and economic empowerment.
JUBILANT KENYA offers a wide range of products to its customers which whoever, those to be submitted on MYC4 are;

  • Agriculture Product- this includes loans for farmers an d fishermen
  • Business/working capital product –  This is for small business entrepreneurs who either to start new businesses or add on to the business stock so as to grow their businesses.
  • Solar product – These are loans offered to business person that are promoting the use of green energy by selling solar panels, bio gas etc.

Here is the second quarter portfolio performance update of the year 2014.

The volume of loans disbursed in Q2 2014 was significantly less compared to the disbursements done in Q1 this year. In Q2, a total of €566,253 in 867 loans was disbursed compared to €764,506 in Q1 2014. The decline in disbursements was anticipated owing to MYC4 being unable to disburse to Tanzania partners as from 1st of April this year. This was attributed to our partner INTL not being able to support MYC4’s cash management activities due to regulations in the country as per the beginning of the quarter.

In terms of quality, the portfolio has been stable in the period although the PAR 30 suffered a decline in the last few weeks of the quarter to close at 23%. This is largely attributed to some pending repayments from some Tanzania providers, Gatsby and KEEF. The net defaults remained below 1%. It is also positive to note that cancellation of loans reduced from €7,896 in Q1 2014 to €2,897 in Q2 2014. This figure is exclusive of €13,446 worth of loans to Tanzania which were pending disbursement but cancelled as a result of closing down disbursements to the country at the beginning of the quarter.

We had only one loan defaulting this quarter worth €570 from Fanikiwa. This defaulted loan has since been paid off. From an investor point of view, the overall net return is again positive at 1.87% on loans disbursed by the current providers* in the last four years. This is an indication of stability in overall net returns when looked at in the light of the last few quarters: 1.94% for Q1 2014, 1.9% for Q4 2013, 1.7% for Q3 2013, 1.6 % for Q2 2013, 1.5 % for Q1 2013, 1.7 % for Q4 2012 and 1.9 % for Q3 2012.

Portfolio Performance - current providers*

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 were distributed among 5 providers, three in Kenya and two in Uganda. KEEF continued being the most active partner for the second consecutive quarter this year with 45% of the disbursements. This was followed by Milango, a new provider, at 27% and YEHU at 14%. The rest of the disbursements came from Uganda with Tujijenge Uganda accounting for 9% and UMF at 6%. The distribution of the funds can be seen in the graph below.

Disbursement per provider - Q2

Disbursement per provider – Q2 (click to enlarge)

In terms of country performance, Kenya accounted for 86% of the disbursements in the quarter while Uganda took the remaining 14%. Milango’s aggressiveness on the platform in the first three months of uploading contributed significantly to Kenya’s total disbursements. Poor performance by Uganda is largely attributed to pausing of Gatsby throughout the quarter and low volumes from Tujijenge Uganda and UMF.

Disbursements by Country

Disbursements by Country (click to enlarge)

There were not a lot of changes in terms of profit and loss. Currency losses continue to impact on the profit and loss but the overall net result has been positive as far as the last seven quarters. The interest earned covers the losses on currency and defaults (see graphs below). Losses arising from defaults are further covered by the partner MFI. Loans disbursed in 2013 and 2014 have not been affected much by the currency fluctuations, however since most of this portfolio is still outstanding; it is too soon to know how the next few months will turn out.

Profit & Loss - Current providers*

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

Net profit & loss (sum of interest, defaults less recoveries, and currency gains/losses) - current providers

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 overall MYC4 portfolio closed the quarter with an outstanding balance (OLB) of 2.06 million in 4,837 active loans. This is a decrease from the previous quarter’s 2.12 million, a decrease of 5.4%. This is mainly attributable to the exit with Tanzania partners at the beginning of the quarter and Gatsby remaining paused throughout the quarter. With the funding of the wholesale loan and more providers coming on board in the coming quarters, we expect the OLB to be on an upward trend again; however in the short term, it will be affected by the exit with Tanzania and July exit with Uganda partners since they will only be repaying. The biggest portion of the portfolio is concentrated in Kenya at 67%, where KEEF is the largest provider; 20% is held in Uganda where Gatsby and UMF hold the biggest share; and 13% in Tanzania with Tujijenge Tanzania being the largest provider there.

At the end of Q4, over 93,200 people had been influenced directly through 18,794 businesses funded through MYC4. 84% of these businesses are informal and majority (62%) are owned by women. Business and farming loans continue to dominate the platform accounting for 71% of the loans disbursed. Other include service, health, education, transportation and renewable energy loans.

* Current Providers: GrowthAfrica, Gatsby Microfinance Ltd, Micro Africa Ltd, Premier Resource Consulting, Tujijenge Tanzania, Fusion Capital Ltd, Makao Mashinani Ltd, Tujijenge Uganda, BELITA, KEEF, Yehu Microfinance Trust, SISDO, Fanikiwa Microfinance Company Ltd., Mtaji Credit Facility Ltd, Uganda Microcredit Foundation Ltd and Milango Financial Services.

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.









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.









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.









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.





















Mama Anne in her little shop in Kawangware, Nairobi

Mama Anne in her little shop in Kawangware, Nairobi

So you think you work long hours? You put in 10-12 hours a day – not every day of course but from Monday to Friday.  That’s alright, and you can allow yourself to be proud of your contribution to society. But please meet Mama Anne from Nairobi, she works from five in the morning till nine in the evening. That’s 16 hours, and we’re not talking a five-day week here, it’s every day. One exception though: she goes to church every Sunday.  But her shop doesn’t close, she has a helper to fill in for the few hours the mass takes.

Maybe that’s why she’s listening to religious radio all the time. Hoping and praying that things will get better.  When we visited, it was about the second coming of Jesus. Mama Anne’s shop is a little one, one of those businesses you see all over the place selling a few necessities like bread, milk, biscuits, sweets and airtime, and when you see it, you wonder how to make a living out of it. It’s situated in a street off one of the busy main streets where all the businesses and markets are.

It doesn't look much, but Mama Anne has her customers.

It doesn’t look much, but Mama Anne has her customers.

-But that’s an advantage, says Mama Anna, I have no competition here, I’m the only shop in this street. The back side of that is that I have a long way to go for my goods.

I’m visiting her in a part of town called Kawangware along with Bayollah Malesi from the MYC4 office in Nairobi and Hellen Awino from SISDO (smallholder irrigation scheme development organization), who is no longer in a partnership with MYC4.

Mama Anne makes a profit of 5-7000 Kenyan Shillings a day (60-80 USD), which is not bad. She has been the proud owner since 1997, and like with most people I talk to when I visit borrowers they work hard because of their children. Mama Anne and her husband, who has four taxis, have three children, one in primary school and two in secondary school. Two of them are in boarding schools far away in the western part of Kenya. School fees are big, for one of her children Mama Anne pays Kshs 38000 per three-month term (430 USD).She got her first loan in 2012 and is now on her third, and according to herself they have really improved her business. She wants a fourth loan for 100.000 Kshs (1250 USD), and chances are good that she’ll get it, because she’s very reliable, Hellen Awino tells me.  She has several plans for her life: She would like the shop to grow into a real supermarket one day, and she also plans to buy a plot and build a house for renting. In Kawangware you can rent a one-room apartment from Kshs 2000 a month (23 USD).

Bayollah Malesi from MYC4's office in Nairobi presented Mama Anne with a solar powered lamp.

Bayollah Malesi from MYC4’s office in Nairobi presented Mama Anne with a solar powered lamp.

The borrowers must make savings every week, at least 50 cent. Savings are key if they apply for a second loan. First time borrowers are trained for weeks where they learn how to manage their business. The borrowers are in a group, where they guarantee for each other, and members can get pretty upset if one of them cannot pay.

That’s not the case with Mama Anne, she’s on track with her payments and always has been. And she knows why.

”I only work and eat – no time for anything else”, she says. I’ll bet you cannot say the same.


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