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Posts Tagged ‘Uganda’

Welcome a new provider: Uganda Microcredit Foundation

Posted in News, tagged , , , , , , on June 19, 2013 | 1 Comment »

UMFWe are happy to announce that we have a new provider joining the MYC4 platform today, namely Uganda Microcredit Foundation Ltd (UMF). Founded in 2008, UMF has been in operation for 5 years and is based approximately 25 kilometers from Kampala, the capital of Uganda, in the town of Seeta. UMF has 35 staff and a total of four branches, all of which are peri-urban or rural.

UMF offers microfinance services to its members at the grass root level who are mainly involved in informal business activities including agriculture. The market targeted by UMF is largely composed of clients that are financially excluded from the mainstream financial sector. So far, UMF has built a loan portfolio of around €700,000 with close to 1,400 active clients and a portfolio at risk above 30 days (PAR30) of 2.3 %.

The mission of UMF is to “mobilise resources, offer inclusive financial and non-financial services to empower the people of Uganda especially in the rural areas, through well designed customer tailored financial products and services in order to facilitate economic growth and development”. Its vision is to “be the champion of the socio- economic transformation of the people of Uganda”.

UMF client, tomatoes in garden

Three different types of loan product have been developed for UMF’s pilot phase on MYC4:

  • Agriculture – Loan product offered to people involved small agri-business activities to help them improve productivity and their incomes. It is offered through individual lending methodology and ranges in size from €250-€5,000.
  • Commercial – Loan product offered to small business entrepreneurs involved in trade to improve their working capital. It is offered through individual and group lending methodology with loan sizes between €250-€10,000.
  • Housing - Loan product offered to people involved in any income generating activity to help them construct a new house or improve on the existing one for both residential and commercial purposes as a way of improving their livelihood and incomes respectively. Loans range between €250-€5,000.

It is expected that the payback period on loans uploaded during the pilot will be around 12 months on average, and maximum investor interest will range between 12-18 % depending on the product and the loan size.

The on-site training of UMF has started this morning and we look forward to seeing the first loans from UMF open on the platform later this week or no later than early next week. If you would like to know more about UMF, follow this link to its brand new Provider Profile.

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Spot Checks Q1 2013

Posted in Analysis, Credit Operations, tagged , , , , , , , , , , , , , , , on June 12, 2013 | Leave a Comment »

In the first quarter of 2013 we carried out spot checks on four of our partners. These were Gatsby Microfinance (Uganda), Tujijenge Uganda, Micro Kenya and KEEF. The partners had scores ranging from 4 to 8 out of 10. The spot check score forms part of the parameters that are used in overall risk rating on MYC4 (commonly referred to on MYC4 as the star rating, due to the five stars displayed on each provider profile). Subsequent action points are given for each provider, including measures such as pausing of loan uploads until certain issues are adequately addressed.

The spot check is a tool used by MYC4 bi-annually to verify that the data captured on MYC4 is accurate; and that the borrowers not only exist but are carrying out the businesses as detailed on the platform. Another objectives of the spot checks is to verify that the providers are carrying out best practice as laid down in their policies (MYC4 only engages with providers that demonstrate, during due diligence process, that they have sound risk management policies). Many will agree that, it is one thing to have good risk policies in the finest print, but consistently implementing the same requires a multiplicity of factors – including management commitment, staff motivation & ownership, adequate training, and a good incentive scheme. Thus from the aforementioned, there are two principal aspects: Adherence to MYC4 model; and implementation of risk management practices.

Over a period of time since 2010, we have seen tremendous improvement in adhering to best practice. Many of our partners have incorporated aspects that were not part of their routine into their overall risk management structures. Areas that have seen good improvements include loan assessment, collateral perfection, and documentation. We have also managed to enforce more strictly, adherence to the MYC4 model.

The MYC4 model basically requires that borrowers access the loan funds at exactly similar terms and conditions as stated on the MYC4 platform. Thus, for example, loan for Odeke Julius is lent on MYC4 at an effective interest rate (EIR) of 41.87% for 12 months with collateral of a motor vehicle: We expect during the spot check to find a properly appraised loan at same terms and with collateral adequately perfected. Repayments received from borrowers should also be entered on MYC4 system as and when received from the borrowers. Suffice to say that loan status on MYC4 should mirror the provider’s information system with regard to each loan on MYC4. The withholding tax must also be remitted to the tax authorities.

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The grading of the four institutions was divided as follows
1. Adherence to MYC4 model
2. Implementation of sound risk management practices
i. Completeness of loan files
ii. Perfection of collateral
iii. Loan assessment and documentation
iv. Processing of loan repayments
v. Client visits

Gatsby Microfinance holds our biggest portfolio per provider (about 23% of our portfolio). It was thus refreshing and comforting that they achieved the highest score from the spot checks, 8 out of 10. Among the highlights were that they had adequate loan assessment and approval mechanisms which were well documented; collateral perfection was sufficiently and consistently done; business visits revealed businesses with capacity to meet loan obligations; and there was strong adherence to MYC4 model with regard to disbursement amounts, interest charged, borrower awareness and consent of MYC4. The concerns noted included that there was a gap in repayment processing on MYC4 resulting in loans being cleared in GMFL books whereas small balances were outstanding on MYC4. Other concerns were that MYC4 currently finances a big part of GMFL portfolio (30%) and as such GMFL is required to urgently diversify funding sources.

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Tujijenge Uganda (TUG) holds about 4% of overall MYC4 portfolio, while MYC4 holds over 40% of its portfolio. About 99% of its portfolio comprises of short term group loans. The perception of positive impact among its borrowers is very high – as several of the borrowers visited (who can be classified as bottom of the pyramid) attributed their elevated level of income to TUG. TUG was found to have good assessment of groups; had good documentation; collateral mostly was group co-guarantee and the necessary guarantees were in place. The key concern with TUG was on adherence to MYC4 model, whereby it was established that there was quite a high degree of non-compliance (TUG mostly pre-funds the loans it uploads on MYC4 at predetermined interest rates). This informed their low score of 4 out of 10. Other concerns noted were on documentation especially of the approval process and referencing/ file retrieval. TUG has been paused from further uploads so as to address adherence to MYC4 model and also give way forward on diversification of loan funding.

KEEF (Kenya Entrepreneurship Empowerment Foundation) holds a significant part of overall MYC4 portfolio, about 17%, and the converse is even more significant with MYC4 financing about 27% of KEEF portfolio. KEEF has demonstrated commitment to following the MYC4 model, as there was no issue of prefunding that existed previously. Repayments processing was found not to be accurate and with room for improvement. Loan assessment was not well captured in the documentation on file. Collateral perfection was satisfactory. KEEF  generally has sound risk management principles and is complying with the MYC4 model. The omissions in loan documentation and lack of consistency in repayment processing have informed the average score KEEF scored 6 out of 10. Further growth of KEEF on MYC4 will be limited to ensure that MYC4 remains below 30% of overall KEEF portfolio.

Micro Kenya holds about 15% of MYC4 portfolio, while MYC4 holds below 5% of Micro Kenya portfolio. Micro Kenya is part of the Micro Africa group that has made a strategic decision to exit from MYC4 platform, after acquisition by Letshego of Botswana. Micro Kenya is to a large extent uploading freshly approved loans as per our pre-funding policy. However, the requirement for compliance is 100%, which has been violated. Over 90% of the loans funded through MYC4 have been through the group lending methodology. The loan appraisal and documentation were well documented. However, the loan documentation was not consistently and completely done as several loans did not have critical loan documents such as loan agreements. Compliance with MYC4 policies on other areas than pre-funding, was noted to be good.

The next round of spot checks will be carried out in this 2nd quarter on our partners in Tanzania.

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In another life I would still be a carpenter

Posted in Borrower Testimonials, tagged , , , , , , on May 13, 2013 | 1 Comment »

Meet Micheal Wamala, a soft spoken man from Uganda, who feels he is living his dream. Being from a humble background, he hardly sat on a chair while growing up – and the first chair he sat on was made by himself. When Mr Wamala was growing up he had a passion of being a carpenter; he had always felt bad for the fact that they never had any chairs in his homestead. Once he cleared high school, he decided to make a chair and that was the beginning of his life long career of carpentry.

Wamala working at his workshop

Wamala working at his workshop

Mr Wamala is a client of Gatsby Microfinance Limited. He has successfully completed repaying 3 loans and is in the process of repaying the fourth loan through MYC4. We had a talk with him and could clearly hear is passion for carpentry. When we asked him if he could think of starting another business, he said “if I would be given another life I would still be a carpenter”.

How did you hear about MYC4?

I was a member of Uganda Small Scale Organization back in 2010 where we were introduced to Gatsby by our leaders. Gatsby told us about MYC4 and even took us to classes to understand better how MYC4 worked.

What did you use the loan for? And has the loan helped you grow your business?

The first loan I added to the savings I had and opened my first workshop, hence I stopped being employed and started operating my own business. With the second loan I added my capital and hired two young men to help me in running the business. So far my business has really grown and I have managed to open another workshop and hired four more people.

Have the loans influenced the society around you?

Yes, they have. My friends have been motivated by the good work I do, and they have been asking me how I have managed to make my business grow and still have products of good quality. The loans have also influenced the life of my family. I’m able to support my wife and my three children who are in good private schools and I pay their school fees without any problem.

Have you been able to hire new employees after you received the loans?

Yes, I have been able to hire six young men who help me in running the business. Before I got the loans I was the only one doing everything at the workshop, and I plan hiring more to run the new workshop after repaying this fourth loan.

How do you find our interest rates compared to other MFIs in Uganda?

Having started working with MYC4 through Gatsby for the last four years I have never been interested in knowing how other MFIs charge their loans. So far MYC4′s interest rates work for me, I cannot complain.

Did you find any difficulties in repaying your loans?

In repaying the first two loans I didn’t experience any difficulty in repaying. The third loan gave me some problems, because one of my workshops burnt down hence coming up with the funds to repay the loan was a struggle. I managed to clear it and request for a fourth loan.

What are your future business plans?

My future plan is to build my own building to be able to operate my business in my own building and cut the cost of rent every month to instead put that money into the business.

Would you recommend MYC4 to others?

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Wamala outside his workshop

Yes, and in fact I have recommended my two friends and they are both taking their third loan with MYC4.

Do you have additional comments?

I would encourage people to do what they love in their lives because it is always a joy to wake up to do your passion in life. For those who don’t have funds to start a business I would advise them to join a microfinance institution and request for loans.

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Exit of Micro Africa as MYC4 provider

Posted in News, tagged , , , , , , on May 6, 2013 | 3 Comments »

Last week we could share the news that Micro Africa Ltd has decided to exit as a MYC4 provider. The decision comes as a result of Micro Africa being acquired 100% by Letshego Holdings who is able to finance Micro Africa’s lending activities going forward.

We have received a letter to the MYC4 investors from Tim Carson, Micro Africa’s CEO. He writes:

To all MyC4 Investors

It is with great regret that I write to advise that Micro Africa will be ending its long association with MyC4. Micro Africa has been acquired by Letshego Holdings of Botswana, a financial services company listed on the Botswana Stock Exchange and active in 12 African countries. Letshego has advised that it will take care of all of Micro Africa’s future funding requirements. As a consequence, Micro Africa will not post any new loans on Myc4.

Letter to investors

Click to enlarge

Over the past 5 years, the MyC4 investment community has been a vital cog in enabling Micro Africa to transform the lives of its entrepreneurial clients. Since 2008, MyC4 investors have provided EUR2.8million of crucial funding to almost 2500 clients of Micro Africa in Kenya, Uganda & Rwanda.

The MyC4 funding has been extremely beneficial to our clients enabling them to expand and develop their business activities.

The MyC4 funding has also been a key part of the development of Micro Africa. In 2008, when we first began our association with MyC4, Micro Africa had a portfolio of $4million and approximately 4200 clients. Today Micro Africa has a loan portfolio in excess of $21million and over 45,000 clients.

I would like to thank you all for your support of Micro Africa and our clients. I urge you to continue your support through MyC4 of the thousands of small businesses in Africa that would find it difficult to fund their activities without the support of MyC4.

Many thanks again

Tim Carson

CEO -Micro Africa Ltd

Micro Africa is currently the largest provider on the MYC4 platform with 1469 active loans and an outstanding portfolio of approximately €630,000. The portfolio is held in three countries, namely Kenya (60 %), Uganda (25 %), and Rwanda (15 %). As a result of the exit, no new loans will be uploaded to the MYC4 platform for funding, and the active loans will be repaying in accordance with their respective repayment schedules. Micro Africa has reaffirmed its 100 % guarantee to cover on behalf of its clients in case of loan defaults.

MAL - Office 2_JPGTim’s letter to MYC4 investors expresses in many ways the direction that MYC4 has actively been taking for the last 12-18 months; to be an instrumental financing partner for Tier 2 and Tier 3 microfinance institutions (MFIs) in East Africa that are looking to grow and build institutional capacity.

Our CEO, Mads Kjaer says: ‘We would like to thank Micro Africa and its management for a constructive and professional partnership over the years and we are sure that we will meet again. On one side it is sad to see a 5-year partnership come to an end, yet it is wonderful to part on such good terms and great to know that MYC4 has been part of Micro Africa’s journey from being a small MFI to now being the largest credit only MFI in Kenya’.

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Revisiting the happy carpenter

Posted in Borrower Testimonials, News from Africa, tagged , , , , , , on November 5, 2012 | Leave a Comment »

I am swishing through the dense Kampala traffic on a boda-boda motorcycle – the easiest and quickest mode of transportation here in Uganda. The boda-boda drives up on the side-walk and stops. In the exhaust-filled air I can make out the sound of sawing and hammering. I have come to one of the many carpenter-districts in Kampala.

One of the carpenters with a workshop here is Lwanyaga Haruna. One and a half years ago we conducted an interview with him, and this day I have come back to see how he is doing. It turns out he is doing good, much has happened since we were here last.

Haruna's old showroom to the left, and the new one to the right

Haruna’s old showroom to the left, and the new one to the right

He has built a new show room where his furniture is on display. He started another business on the side selling chickens, indicating that diversifying your income is a very wise choice in this unstable economy. When we visited him last he also spoke about his dream of taking his family out of the slum, a dream that is now within reach as he is almost done with the construction of his new house. Nevertheless, profits are still low.

“The business is growing very slowly. Our currency is changing every month and that is why it is difficult to develop the business quickly, and also the taxes are going up. This is destroying our profits”

Inflation last year was 27% and taxes are rising every year. Access to finance is therefore paramount if he wants to keep his business running and expanding, something he expresses during our visit.

“I want to make big investments, but lack of money, that is my problem.”

Haruna with his wife and youngset child in front of his new house

Haruna with his wife and youngest child in front of his new house

Recently Haruna got his fourth loan funded on the MYC4 platform. With it he will buy material such as wood, foam, springs, and glue to be ready for the coming Christmas, which is a high season in his industry. Gatsby has two different loan products, they have a loan which they finance themselves, and the MYC4 loan that is funded by MYC4 investors. When speaking to Haruna about this he explicitly says that he wants the MYC4 loan because of the lower interest it carries.

He has four children, all of whom go to school. His oldest is studying Business and Communication at a college, the second oldest wants to be an engineer, and his youngest daughter wants to be a doctor. When I ask him if none of them wants to take over the business, he smiles and says

“This business is very difficult. That is why I wanted my children to study so that they could do something else.”

Finally, I asked him where he saw his business in five years:

“The first problem I had was customers. Now I have found customers, but most of them are in the city. So, in five years I hope to have set up a showroom downtown so I can get closer to my customers. And in order to do this I will need more capital.”

As I say goodbye to Haruna I think about how hard he must have worked in this environment to get where he is today. It is really a sunshine story, and I can only hope that when we visit him next time he has moved even closer to realizing the dreams and aspirations he has for himself and his family.

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Recovering in the country side

Posted in Credit Operations, News from Africa, tagged , , , , , , on October 29, 2012 | 2 Comments »

Markus is currently doing a 3 month internship at Gatsby Microfinance Limited in Kampala, Uganda. Gatsby Microfinance has been a MYC4 provider since 2008.

A map showing where Soroti is

A map showing where Soroti is

I am in the sleepy town of Soroti in the North-Eastern part of Uganda. I have accompanied a colleague on a recovery/monitoring trip from the head office to one of our branches. The aim of the trip is to assist in collecting late repayments, monitor practices, and to make sure that the branch is happy.

It is early morning and my colleague from the head office, two local credit officers, a driver, and me get in our 4-wheel drive pick-up truck and head off into the country side. The roads are filled with holes, sometimes there are even sections that have been carried away by floods. So, after being cramped in the back seat with the two credit officers for an hour on a bumpy road with no air condition, we finally arrive at our “in the middle of nowhere”-destination.

We are looking for a man who is three months late on his installments. He owes around 300,000 Ugandan shillings, which is around €90. We find him drinking gin (at 10 in the morning) together with a big group of men that seem to be doing a strange combination of building a house and relaxing in the shade. He seems a little embarrassed to be confronted with his issue in front of his friends, but he claims that he has the money and that we can go and get it from his parents’ house.

Thus, he gets in the back seat and the trip goes on. With the backseat even more crowded, the road even bumpier, and a debt-ridden farmer next to me, it is not a very pleasant ride. After driving for a while we get to a point where we must walk since the road is too narrow. After walking for 20 minutes we get to a small farm. It looks just like something from a discovery channel documentary, with the exception of us four men in shirts and ties with stern faces.

One of the many obstacles in our path

One of the many obstacles in our path

We sit down under a mango tree and wait while he goes into the house to find the money. Then begins a long negotiation. He claims to have only 15,000 shilling. My colleague says that it is not enough. He says we can have a goat instead. We say okay. He brings the goat. It is deemed too young. After much negotiation we conclude that he must pay the money the following day, something he is made to promise on paper with a signature. After this we walk back to the car and drive away.

This is a typical recovery run, tracking down the person who is in debt, and using various means to make him or her pay. Only as a last resort is the security of the loan collected. There is much psychology at play when collecting late repayments, many times people do have the money, but neglect paying because they do not prioritize debts to institutions such as this one. There are several tactics used to pressure people to paying; standing outside the business in suits, visiting their home, making them promise on paper that they will pay, spraying their house with the words “BANK PROPERTY”, or start collecting chattels used as security.

A standard Ugandan small-scale farm

A standard Ugandan small-scale farm

This might all seem a bit harsh, but it is many times necessary to make people pay and to make sure the microfinance institution (MFI) stays in operation. If it were not done, the MFI will eventually go bankrupt, and this would hurt the vast majority that do pay their loans on time and that rely on the capital provided by these MFIs. The fact of the matter is that the number of people that default their loans, or are more than 30 days late with their repayments, is very low (the default rate and PAR30+ is at around 2% and 5% respectively).

If the developing world is to have a working market economy, the same principles must be applied there as those that are at work in the developed world. Ultimately, if the microfinance sector is to become self-sustainable, people need to be accountable for their actions. However, microfinance institutions need to make sure that their clients are given and understand all the relevant information connected to the taking of a loan and that the loan appraisals are done diligently. This is the only way to make sure that loans become good investments for both entrepreneur, MFI, and investor.

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MYC4 reaches OLB of 2 million euro

Posted in Investing on MYC4, News, tagged , , , , , , , , , on October 24, 2012 | 3 Comments »

Back in January, we set out some targets for the year ahead. We wrote:

A key opportunity for 2012 is portfolio growth. We have spent the last 1-2 years on improving the MYC4 business model, our organisational capacity and procedures, as well as our local partner network, meaning that our focus has been on quality rather than growth. We feel that we are now ready to start growing again, and we are experiencing a pull from MFIs that are interested in joining the MYC4 platform. Rest assured, we will not forget our (tough) lessons learned: quality must always remain at the centre of attention, and we strive for controlled growth with good quality loan providers.

The best way to measure our growth is to look at the Outstanding Loan Balance (OLB), that is the total outstanding principal on our active loans. When we started the year, we had an OLB of around 1.2 million euro in 1,200 loans; last week we hit the 2 million mark and we now have more than 3,000 active borrowers. Our overall goal for the portfolio is to end the year at €2.5 million – a target that is still within reach provided that the growth of the year’s first 9 months continues through this fourth quarter.

Another challenge at the beginning of the year was a lack of portfolio diversification country and provider wise. More than 53 % of the portfolio was at the time concentrated in Uganda while Rwanda (17 %), Kenya (11 %), Ghana (11%), and Tanzania (8%) shared the rest. The key issue at the time was that one provider, Gatsby Microfinance Ltd, was alone holding 43 % of the total portfolio. In this regard, the picture has also improved: the Uganda portfolio is still large at 49 %, but it is now held by three different providers and Gatsby’s share is slowly coming down (currently at 37 %); the Kenya portfolio has been growing steadily all year with the introduction of three new providers – KEEF, Yehu Microfinance Trust, and SISDO – and increased activity from Micro Kenya. It is now at 29 % and still growing, even with the exit of Fusion Capital, Growth Africa, and Makao Mashinani well underway; the third focus country for MYC4 is Tanzania where the portfolio has traditionally been small. The results of increased activity from Tujijenge Tanzania and the introduction of BELITA to the platform can be seen on the portfolio size which has grown to 14 %. It is furthermore expected that a couple of new MFIs from Tanzania will be joining the platform in the short to medium term. Evidently, the portfolios in Ghana and Rwanda have been reduced significantly in the same period (to 2 % and 5 % respectively), but we see that as a positive development as we deepen our presence in the three focus countries.

Outstanding Loan Balance and concentration of the MYC4 Portfolio

In terms of the portfolio quality, we were happy to report on another strong quarter in the recent Portfolio Performance update. The main challenge at the moment continues to be the liquidity situation on the platform – the loans in need of funding are plenty, but the capital available to fund them will need another boost if the growth is to continue.

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10,000th MYC4 loan went to Cadia from Uganda

Posted in News from Africa, tagged , , , , on September 27, 2012 | 5 Comments »

Earlier this month, MYC4 reached an important milestone when we disbursed loan number 10,000. The loan went to 46-year-old Cadia from Uganda who was presented with a certificate and flowers by Gatsby staff to mark this special occasion.

Cadia Muwanguzi is a repeat borrower on MYC4, having already repaid two loans before accessing the 10,000 MYC4 loan. She has a shop in Kampala where she mainly sells children’s clothes. The business has been in operation since 2006 where Cadia started out by selling a few items with the use of her personal savings and some support from her husband. Her previous loans from MYC4 has enabled her to start importing clothes and with this €7,000 loan she will be traveling to Dubai to stock new designs at relatively low prices.

A big thanks goes out to all our investors, providers, and borrowers whose dedication and hard work has made this possible.

Cadia (right) receives certificate and flowers in front of Gatsby’s headquarters

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Disability is not inability

Posted in News from Africa, tagged , , , , , , , on September 4, 2012 | 2 Comments »

A member of the Atamaisi Disabled Farmers Group

Ability beyond disability – this is how we should see the disabled people in society. Gone are the days when people with disability were thought to be a nuisance and an object of pity to the Kenyan society. The notion that their work was only to beg by the street corners or when they were not allowed to borrow money from financial institutions etc. is so backwards. Disabled people in society have come forth to let the society know that there is nothing wrong with them, that with a bit of empowerment and acceptance they can do as well as any other person. When educated, they can perform well if not better than any other person – graduate, get jobs and fend for their families. When empowered, they can operate businesses just like any other businessman/woman.

This is well demonstrated by Atamaisi – a disabled farmer group. This group was formed in July 2011, consists of 25 members 14 of whom have borrowed money on the MYC4 platform through Tujijenge Uganda. This has made it easy for them to access financial services and their businesses are doing quite well. The businesses range from bicycles repair shop, tomatoes selling shops, rearing of livestock, to baking of small cakes etc. The group has members with various disabilities – some are lame while others are deaf – from Uganda. This group hold meetings twice a week on Mondays and Saturdays and have good credit history with Tujijenge Uganda. Some of the challenges the group say they face include:

  • They are left out when it comes to NGOs and government programs. This is particularly ironical since these programs are meant for the empowering of the disabled in the community.
  • They are still looked upon by part of society as people who are not productive.
  • They are unable to walk long distances especially to the special programs which are usually organised by the government and NGOs and held in the cities and town area.

Atamaisi Disabled Farmers Group was formed so as to enable its members fight poverty as the level of poverty among them was rising, they also wanted to form a village savings bank to enable them save and access financial aid, they wanted to start businesses and support each other so as to survive and they wanted to earn their daily bread and to educate their children so that their future may be bright. Betty who is disabled and a member of Atamaisi Disabled Farmers Group had this to say:

“I have accepted the situation and strive to work hard since I believe disability is not inability. I can bring food home and fend for my family unlike some people who say they are “normal” and cannot take care of their family due to alcohol abuse.”

In Kenya in the current past and even now, women and children with disability have been more vulnerable to sexual violence, with children being more in danger of rape and verbal abuse by people who deem them lesser human beings. Duncan Mwangi of the Association of the Physically Disabled Kenya says that the society perceives disabled women as a bad omen. He continues to say that there are cases where women who gave birth to disabled children were divorced, and also that some families tend to lock their disabled children indoors to hide them from society. These children or persons with disability are sometimes not allowed to mingle with their age mates, go to school, access medical facilities and they also face attitudinal barriers from society etc.  Sometimes some are forced to live in unhygienic conditions as no one is taking care of them. In some instances, the persons with mental disability were tied up in a room or a tree. To date, society has not fully accepted people with disability. This is however gradually changing with more campaigns advocating for the rights of people with disabilities, which are not only done by foundations but also by churches, schools and the society at large.

The disabled persons have as well come out to educate the rest of the society that disability is not inability, that what they need from the society is :

  • A sense of belonging and acceptance in society
  • That the society focuses on their abilities and not disabilities
  • To be included in decision making, more so when the decision made is about their lives
  • Patience and tolerance
  • Guidance and counselling
  • And empowerment, not pity.

In Kenya, several programs have been organized to educate the society on the rights of the disabled; several associations have also been formed to advocate for the disabled persons rights. Some of the most recent campaigns in Kenya include :

  • The Ability Beyond Disability (niko fiti) campaign – This is aimed at sensitising people with disabilities to increase their participation in community and social life; they were presented with assistive devices e.g. wheelchairs, white canes etc that would help them in carrying the day to day activities.
  • The Bring Zak Back Home campaign – This is a fund raising initiative aimed to raise 250 million Kenyan Shillings (approx. 2.5 million euro) to build a spinal injury treatment centre in Kenya that can accommodate up to 75,000 spinal injury cases. This initiative was launched by the local charity Kenyan Paraplegic Organization (KPO) which works to help people living with serious injuries of spinal cord injury in Kenya.

Disability is clearly not inability as the Atamaisi group has proved. Let us all do our part and empower the disabled in the society and help eradicate the stigma that is associated with disability and poverty.

The Kenyan society has come up in their numbers to fight the social injustice people with disabilities are facing. They have done this through campaigns and even songs as in the case of gospel artists Daddy Owen and Denno, who in their song ask why the disabled in society are being isolated and victimised. See their music video below.

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Visit to the Glory Drug Shop

Posted in Borrower Testimonials, tagged , , , , , , , , on July 9, 2012 | Leave a Comment »

MYC4 conducts spot checks of every provider on the platform every 6 months. Below, Faith Wambua from the MYC4 Nairobi office recalls her first visit to a MYC4 borrower during a recent spot check of Tujijenge Uganda‘s loan portfolio. 

Faith Wambua during a spot check

My visit to Tujijenge Uganda’s Soroti branch started at 5am from Kampala city. Myself and my colleague Githa, together with our driver Yahaya, drove for over 400km and by 12pm we had arrived to the quiet town of Soroti. A small town mainly dominated by the Eteso people of Uganda, who also happen to border with Kenya at Mt Elgon, Western Region of Kenya.

My first field visit was to Serere District to visit Titus Okello, the owner of Glory Drug Shop. On arrival to this local town center, we found 3 shops and a small dispensary, but they were all closed. Apparently it was the planting season as the short rains were in Uganda and everyone was busy cultivating on their farms.

Titus Okello was at his farm far away but his wife was busy planting at a nearby farm so someone was sent to get her to come and open the shop so that we could have a little chat with her. This was the only pharmaceutical shop in the local town centre and even though we had driven for over 40km to get to the Glory Drug Shop, we did not encounter any other drug shop on the way.

The wife arrived shortly after and was very excited about our visit and welcomed us gladly.

Stock inside the Glory Drug Shop

Since the husband got the loan through Tujijenge Uganda, their business has improved with huge significance. She explained that they were able to stock more variety of drugs and hence able to satisfy the market demand. This had also brought about increased profits and larger incomes to make them able to pay for their children’s school fee. She was very grateful for Tujijenge Uganda availing these loan services to them as no other organisation has reached these parts of their district with the good news of giving out loans.

- Titus will feel really bad when he finds out that he had visitors all the way from Nairobi but was unavailable, she explained. She also said that they were working hard to pay off this loan so that they can get a second loan, but this time for a larger amount to invest as a wholesaler for drugs in the region.

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