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September Update.

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.

 

 

 

premierPremier Kenya Limited is not new to MYC4 , as you would recall, they were the borrowers of the whole sale loan that was disbursed a few months ago. Premier Kenya joins MYC4 as providers of small business and group loans.
Premier Kenya is microfinance that specializes in credit only and was incorporated in 2014 January. Run by experience microfinance 34professionals, Most of Premier Kenya’s staff was working with MYC4 former provider Micro Africa and therefore have a vast knowledge on how the MYC4 system works. Premier Kenya was founded by Tim Carson and James Mugambi who are the former sole directors of Micro Africa Ltd. During the first months of operation, Premier Kenya recruited 2500 active clients in its first 5 months of business and has a portfolio of KES 240million. Average loan size at present is approximately KES 100,000. (approximately 900 Euros)

Products
Premier focuses on several products, which include-:

  • Group Loans – Product is meant for customers in groups of 3-20. Individuals form the groups and co-guarantee each other when applying/taking loans.
  • SME Loans – This product is the Premier Kenya business loan. This is given to both secured and unsecured business loans. The unsecured SME loans are offered to small and medium enterprises with no formal securities.
  • Housing Improvement Loans – This is alos given to those with or without securities and has enabled many households to improve their living standards by improving their housing structure etc.

Loan terms vary from 6 -36 months depending on usage of the funds by the client and also the amount required by the client.. These are some of the products that they will upload on MYC4.

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

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.

 

 

 

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

SisdoMilango

 

 

 

 

 

 

 

 

 

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

 

TanzaniafanikiwaMtaji

 

 

 

 

 

 

 

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

 

umfTUGGatsby

 

 

 

 

 

 

 

 

 

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

daniel@keefkenya.org

Picture1

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.

Mission

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.

Vision

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.

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