The world's largest
micro-lending organisation KIVA, has announced that it will set up its
Africa base in Nairobi to strengthen its partnerships and advance
economic opportunity.
The Kenyan office will be
Kiva's first outside the USA, a huge development for a non-profit
organisation that was founded in 2005 to lend capital to the small and
medium enterprise across the world aimed at alleviating poverty. Matt
Flannery and Premal Shah who are the founders of the organisation said
the regional office will be based at the Business Centre at
Strathmore University on April 17 this year.
"As
we open the doors to our new office Nairobi, we are opening the door
for new opportunities and exciting partnerships across Africa,'' said
Matt Flannery, CEO and co-founder of Kiva. He added that Nairobi is an
emerging hub for numerous potential social enterprise buoyed by the
entrepreneurial spirit that is hugely nurtured in the country.
Kiva's
borrowers use internet connection and can access loans from as little
as Sh2, 117 ($25) with a repayment rate of 98.9 per cent, lenders are
privileged to relend their money or withdraw it from the system.
Kiva
has 900,000 lenders and has so far distributed more than $410 million
loans to one million people worldwide. In Kenya, the organisation has
previously offered a total of $20.5 million to 63,000 individuals.
The organisation mostly relies on grant from its 250,000 partners from 125 countries globally.
"Fundamentally, Kiva is about recognising and supporting the
potential of small enterprise and ideas to people across the globe
with financial constraints,'' said Premal Shal, Kiva Co-founder and
president.
Kiva micro-loans target
borrowers investing in business, education, energy products and in
sustainable agricultural practices in the country. In Kenya, the
organisation has 14 partners.
Strathmore
University is one of the key beneficiaries of this initiative, under
their flexible, risk tolerant capital, Strathmore University students
who comes from the poor background has accessed 11-year tuition loan
that comes with a five year grace period.
Lydia Balil is one of the recipients of the education scheme under
Kiva who is studying for a Bachelor of Commerce at the University.
Being raised up in Turkana County in the remote area of Northern
Kenya, her hopes for higher education were almost dashed off were it
not for the financial support she received from the latter.
"My
past experience almost compromised my education, given this chance by
Kiva, my quest for higher education can now be achieved,'' she said.
Kiva
key partner, Juhundi Kilimo has so far provided financial services to
over 7,000 small scale farmers in the rural areas of Kenya where
majority of the recipients are women.
Juhundi
mission is to provide wealth creating financial services including
conducive loans to acquire productive assets such as dairy cows and
irrigation schemes.
Another partner
identified by the name Komanza, helps the borrowers convert dry lands
into productive and meaningful tree farms in the Eastern Kenya.
In
May 2011, Kiva began a new lending channel dubbed ‘'Kiva Green
Loans'' that target enterprises reducing energy consumption by coming
up with new models of conserving waste and pollution by recycling
used materials towards alleviating energy poverty and maintaining a
healthy environment.
It is estimated that
1.5 billion people which is a quarter of the world's population do not
have access to electricity where the only source of energy comes from
costly and polluting products like charcoal and kerosene.
Kiva
started its operation with only five employees with a total of $
3,500 in funded loans. Today, it boasts to a huge global community of
850,000 members giving out $1.5 million in loans per week.
Kiva
borrows its name from East Africa where its founders initially worked
in Uganda and Kenya. In Uganda, Kiva is a colloquial word for unity.
You dreams are valid no matter where you come from. I learned that from Lupita Nyongo
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