2013 Annual Report Kenya - MicroFinanza · PDF fileAMFI Kenya and MicroFinanza Rating are...

Expertise for Transparency in Microfinance

2013 ANNUAL REPORT

ON THE MICROFINANCE SECTOR IN KENYA

SECOND EDITION | NOVEMBER 2013

2013 ANNUAL REPORTON THE MICROFINANCE SECTOR IN KENYA 1

The Association of Microfinance Institutions-Kenya (AMFI) is a member-based institution, registered in 1999 under the Societies Act by the leading MFIs in Kenya, with the aim to build the capacity of the Kenyan microfinance industry. AMFI-K is membership ranges from large, mature banks to relatively smaller MFIs, Deposit taking Microfinance Institutions, Sacco’s, developmental institutions, wholesalers and retailers as well as micro-insurance providers.

Vision:

The Mission

Strategic Objectives

The strategic objectives emerge from a review of AMFI’s current business environment and discussions with members, and are as follows:

To enhance collective action by MFIs and other stakeholders for a conducive policy and regulatory environment for microfinance in Kenya;

To strengthen the capacity of MFIs in delivering appropriate and sustainable microfinance services to low income people, through organization and coordination of workshops and training sessions and effective systems for information collection, analysis and dissemination (incl. data bases, print and electronic media);

To enhance collaboration, linkages and partnerships between AMFI, its members and other development actors and stakeholders, both locally and internationally, and set standards and increase professionalism in the industry;

To strengthen the internal capacity and funding base of AMFI and its Secretariat in providing value-adding services to its members and the industry at large.

To realize the five key objectives, AMFI-K has developed its activities in the following main areas:

Strategic pillars These key result areas are:

1. Policy Advocacy and Lobbying

2. Capacity Building

3. Networking and Linkages

4. Research and Knowledge Management

AMFI-K is a key actor in supporting a healthy expansion of the vibrant microfinance industry in Kenya, and the network is committed to continue to strengthen its role as an advocacy, coordination, and capacity building body for the microfinance industry

Chief Executive OfficerAssociation of Microfinance Institutions- KenyaMethodist Ministries Centre; First Floor. Oloitoktok Road Lavington.PO BOX 10701-00100, NairobiTelephone: 020 2106090 / 2; 020 386 2378; 020 386 4053; Cell 0737 409 059.Email: [email protected]. Website: www.amfikenya.com

Contacts:

2013 ANNUAL REPORTON THE MICROFINANCE SECTOR IN KENYA2

Jeff Njagi Chairman AMFI and Chief Executive Officer (MESPT)

Ben Nkungi Chief Executive Officer AMFI

Caroline Karanja Programmes Manager

Paul Karanja Office Assistant Admin

Nat Robinson-Treasurer AMFI and Chief Executive Officer of Juhudi Kilimo Company Limited

Shadrack Mithika Finance Manager AMFI

Charles Njoroge-Direcor Operations Micrafrica Ltd

Lydiah Kibaara General Manager REMU DTM

Mr. John Mwara Kibochi Vice Chair AMFI and Managing Director Faulu DTM

Juddie Mmosi Social Perfomance Manager AMFI

Nancy Chotero PA and Office Adminstrator

Mwangi Githaiga Managing Director of KWFT DTM

Alex Gabriel Data Analyst

Paul Kihiu-Chief Executive Officer Select Africa Kenya microfinance

Anne Gathuku GM Greenland Fedha

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MF Rating HQ

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www.microfinanzarating.com [email protected]

@ 2013 MicroFinanza Rating Srl

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MICROFINANZA RATING (MFR) is a private and independent international rating agency specialized in microfinance, founded in 2000. Our vision is to operate in a transparent market as a highly qualified information provider in the field of microfinance and responsible investing. Our mission is to provide the microfinance and responsible finance industry with independent, high quality ratings and information services, aiming at enhancing transparency, facilitating investments and promoting best practices worldwide. OUR CORE SERVICES

MicroFinanza Rating is your best partner for rating and assessment, as we offer:

High professionalism: analyst driven ratings that combine an international team of professionals with broad experience, strong economic background and deep knowledge of the microfinance sector;

Largest experience: more than 800 ratings and assessments in more than 80 countries;

Wide network of regional offices: offices located in 5 continents; Customized services: highly tailored approach thanks to the broad working

experience in different regions and with a variety of MFIs; Rating Committee Unit: ensure independence and always chaired by experienced

managers; Social Rating Department: dedicated department to social rating. We offer 2

social rating products (i.e.: Standard and Comprehensive); Well-founded credibility: MFR has been recognized by the global Rating Fund 1

(IADB/CGAP/EU), the Rating Initiative, the Latin American Rating Fund 2 and the Moroccan APP. The first specialized rating agency to be appointed by a national regulatory authority (in Ecuador) and licensed to carry out credit ratings. Since 2012 MFR is also accredited by the Central Bank of the Philippines;

Active partner of transparency and SPM initiatives: MFR is member of the African Microfinance Transparency, active partner of the SPTF and certifier licensed by the SMART Campaign.

• Microfinance Institutional Rating• Social Rating (standard and comprehensive)• Credit Rating

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Table Of Contents

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AMFI members as at August 20th 2013 ..........................................................................................................................................

2012 CMA awardees .........................................................................................................................................................................


FFOORREEWWOORRDD 22001133 AANNNNUUAALL RREEPPOORRTT OONN TTHHEE MMIICCRROOFFIINNAANNCCEE SSEECCTTOORR IINN KKEENNYYAA || SSEECCOONNDD EEDDIITTIIOONN

AMFI Kenya and MicroFinanza Rating are pleased to present the 2013 Annual Report on the Microfinance Sector in Kenya. This second issue presents the Kenyan microfinance industry developments and trends covering the period 2010-2012, and displays both aggregate quantitative and qualitative information that is segmented according to the charter types of the participants; notably Banks, DTMs and Credit-only MFIs, as well as a directory of the individual microfinance services providers in Kenya. The second edition of this publication builds on the previous issue and feedback collected from the sector’s stakeholders.

This publication is embedded on AMFI Kenya and MicroFinanza Rating roles to foster transparency in the microfinance sector; AMFI as the national professional association focused on building the capacity of the microfinance industry to ensure the provision of high quality financial services to the low-income people; and MicroFinanza Rating as a leading microfinance international rating agency providing independent ratings and assessments. This publication is a response to the demand of many stakeholders for updated information, both in aggregate and individual terms. The publication is intended to increase the visibility of the Kenyan microfinance industry in the domestic and international financial markets, facilitate linkages between microfinance players and industry stakeholders; as well as provide individual MFIs with information and benchmarks to set their standards and strategic goals.

AMFI Kenya and MicroFinanza Rating take this opportunity to extend our deep gratitude and appreciation to the participants for their collaboration and continued support. This publication has generated interest and this year the number of institutions participating grew to 21 Credit Only MFIs, 7 DTMs and 4 Banks, a total of 321 participants, all AMFI members.

Benjamin Nkungi Aldo Moauro

Chief Executive Officer Executive Director

AMFI Kenya MicroFinanza Rating

1 This sample drawn from AMFI members is considered as representative of the Kenyan microfinance sector. The detailed list of participants is shown in Annex 1.


IINNTTRROODDUUCCTTIIOONN 22001133 AANNNNUUAALL RREEPPOORRTT OONN TTHHEE MMIICCRROOFFIINNAANNCCEE SSEECCTTOORR IINN KKEENNYYAA || SSEECCOONNDD EEDDIITTIIOONN

The 2013 Annual Report on the Microfinance Sector in Kenya is based on the analysis of data provided by the 32 participants: their audited financial statements as of 2010, 2011 and 2012, as well as a quantitative and qualitative survey that was administered to them.

Based on common feedback from the first edition, this year’s report has been segmented according to the charter types of the participants namely the Banks, DTMs and Credit Only MFIs; to better reflect the specificity of their operations and perform a more representative analysis. The aggregate analysis considers two scenarios: the global picture and the focused scenario (whole sector without banks) to clearly depict the microfinance industry. This segmentation further necessitated the additional effort of the banks to report on their microfinance portfolio as opposed to the whole portfolio. From the four banks2, two were able to report on their microfinance portfolio, namely Equity Bank and Jamii Bora Bank. The microfinance portfolio provided by the two banks is based on their internal definition3 for lack of a common, accepted, practical and qualified definition of microfinance in the Kenyan context. These internal definitions do not include some loan products, such as agriculture loans and certain consumer loans - that could indeed be considered as microfinance as they are sometimes offered by Credit-only MFIs and DTMs. The publication bears on the imperfection on the definition of microfinance, which is not standardized, and the consideration of the full portfolio of the third bank. Although these limitations affect the representation of the Banks’ segment; compared to last year’s publication, the improved segmentation and the inclusion of Banks’ microfinance portfolio results in a more precise and close proxy of the microfinance industry operations.

Taking advantage of the large outreach of the national network association, the study targets AMFI members as a representative sample of the industry. The process of collecting information was better streamlined this year thanks to the support and continued cooperation from all participants. The degree of inconsistency in the data collected was minimized as better controls4 were implemented in verifying data. The margin of error is to a large extent linked to incomplete data and to some mismatches between the gross loan portfolio amount in the financial statements and the internal portfolio data. However the data reported closely reflects the true position. The sample of participant’s varies in the survey either due to incomplete data on various sections of the questionnaire or because some questions were not applicable to certain participants.

The publication is intended to highlight basic indicators and trends in aggregate and individual terms. First, the study comprises of a general section on the Kenyan microfinance sector, displaying consolidated and segmented data according to the charter type of participants, over the period 2010-2012. This first part addresses the sectors’ size in terms of assets growth and composition; the outreach of the sector in terms of portfolio size, number of clients and geographic coverage; the sector’s financial structure, solvency and liquidity position as well as its achievements revealed by profitability, efficiency and productivity. The second part of the report displays portfolio quality indicators and trends. Then, the narrative shifts towards the products analysis, addressing both the sector’s portfolio composition and the current microfinance product offering. A brief competition analysis follows, reporting the microfinance providers’ perceptions in terms of area of competitive pressure. This year, we also decided to include a section on the development in microfinance regulation. Tables showing the evolution of the market shares of each individual player in terms of total assets, gross loan portfolio, equity and liabilities are displayed to allow for general comparison. The last part of the publication consists of a directory of all participants. It shows for each Credit Only MFI/DTM/Bank a brief background description, standard ratios5 and trends over the past three years coupled with a brief descriptive analysis, the areas of operations and contact information.

2 Out of the 4 banks, 3 offer credit services 3 Jamii Bora’s definition of microfinance is “micro group loans, micro individual loans, daraja group loans and daraja individual loans, and the women enterprise fund ranging from KES 5,000 - 500,000”. The microfinance portfolio is separately tracked in the system with a unique code. 4 The controls on the data aimed at having a set of matching and squaring data especially on the portfolio breakdowns by ageing category, products and geographic coverage; where majority of the participants were able to provide this information. 5 The definition of ratios is presented in Annex 2


MMAACCRROOEECCOONNOOMMIICC EENNVVIIRROONNMMEENNTT 22001133 AANNNNUUAALL RREEPPOORRTT OONN TTHHEE MMIICCRROOFFIINNAANNCCEE SSEECCTTOORR IINN KKEENNYYAA || SSEECCOONNDD EEDDIITTIIOONN Kenya’s economy expanded by 4.6% in 2012, an improvement compared to 4.4% registered in 2011. The growth was mainly driven by the energy, financial services and trade sectors under a more stable economic environment. The macroeconomic environment was turbulent in 2011, which saw sharp currency depreciation, rising inflationary pressure, drought and deteriorating global conditions which held back the economic growth. Kenya’s economy is forecasted to grow at 5.6% in 2013 on account of prevailing macroeconomic stability, expanding credit to the private sector, increased foreign direct investments and more dynamic regional trade.

The overall inflation declined significantly in 2012 compared to 2011 when inflationary pressure spiked6 due to rising international crude oil prices and food prices linked to the drought. The volatile exchange rates7 saw weakening of the Kenyan Shilling. The CBK has actively intervened in the money market to enhance the macroeconomic stability and the rising lending rate reflects the upward adjustment of the benchmark interest rate8. The inflation rate was within the 5% medium term target set by National Treasury as of December 2012.

6 The peak in inflation reached 19.7% in November 2011. 7 The Kenyan Shilling lost a record of 24.5 % of its value against the dollar in 2011. 8 The benchmark interest rate was maintained at a high of 18% since December 2011 for six months before adjusting downwards from 16.5% to 13% and 11% in July, September and December 2012 respectively.

KenyaMacroeconomic Indicators Dec-10 Dec-11 Dec-12 Dec-13*

Exchange rate in USD (end of period) 80.8 85.1 86.0 88.6Exchange rate variation 6.5% 5.3% 1.1% 3.0%Inflation rate (average) 4.1% 13.2% 10.4% 5.6%Inflation rate (end of period) 4.5% 18.9% 3.2% 6.4%Deposit rate 4.6% 5.6% 11.6% naLending rate 14.4% 15.0% 19.7% 17.1%Real GDP growth 5.6% 4.2% 4.6% 5.3%GDP per head (USD) 795 869 960 na

*EIU forecastsSource: International Finance Statistics, EIU


PPAARRTT II:: AAGGGGRREEGGAATTEE AANNAALLYYSSIISS 22001133 AANNNNUUAALL RREEPPOORRTT OONN TTHHEE MMIICCRROOFFIINNAANNCCEE SSEECCTTOORR IINN KKEENNYYAA || SSEECCOONNDD EEDDIITTIIOONN

11.. SSIIZZEE OOFF TTHHEE SSEECCTTOORR AANNDD OOUUTTRREEAACCHH Total assets of the sector register a stable growth over the past 3 years (+21.6% in 2012), amounting to KES 298.4 bn as of December 2012. The sector remains dominated by the banks, in particular Equity Bank which represents 72% of the sector’s total assets. The relative market share of the different segments remained stable since 2010, with the 4 Banks, 7 DTMs and 21 Credit-only MFIs respectively accounting for 85%, 11% and 4% of the sector’s total assets in December 2012. Without the banks, total assets of the sector registered at KES 43.8 bn as of December 2012 and report a 30.4% annual growth.

Chart 1

In terms of relative growth in total assets, DTMs are leading in 2012 with 32%, followed by Credit-only MFIs (26%) and Banks (20%). It is interesting to note the positive assets growth in 2012 for DTMs and Credit-only MFIs; whereas banks registered a negative growth in 2012.

Table 1

The net loan portfolio 9 represents 53.4% of the sector’s total assets and 63.4% of the sector without banks’ total assets as of Dec. 2012. Credit-only MFIs are the segment most concentrated in their core lending activity as their net portfolio accounts for 69.5% of their total assets. The ratio has been increasing over the past three years.

Table 210

As of Dec. 2012, the microfinance sector shows positive growth trend, reaching out to 832,794 active borrowers 11 with a gross loan portfolio 12 of KES 49.1bn, achieving a 15.7% annual growth. Without banks, the sector reaches out to 657,785 active borrowers with a loan book amounting to KES 28.6 bn; reporting a 26.4% annual growth.

Chart 212

9 We refer here to the total net loan portfolio (including microfinance and non microfinance loans of the banks). 10 As for Banks, the ratio was also calculated without Postbank as its core business is to collect deposits and its portfolio is only composed of staff loans. 11 As for Equity Bank and Jamii Bora Bank, only the number of microfinance active borrowers was taken into account, according to the banks’ internal definition (the non-microfinance borrowers were excluded). Due to lack of data, K-Rep total number of active borrowers was taken into account. Postbank number of active borrowers (only staff members) was not available. 12 As for Equity Bank and Jamii Bora Bank, only their microfinance portfolio was taken into account (the non-microfinance portfolio was excluded) according to the banks’ internal definition. Due to lack of data, K-Rep total portfolio was taken into account.

4% 4% 4% 12% 10% 11%

84% 86%

85%

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

2010 2011 2012

KES

Mill

ions

Assets Size

Credit Only MFIs DTMs Banks

Assets Size and Growth (KES bn)

2010 2011 2012

Credit Only MFIs 8.6 8.9 11.2 Growth 25.7% 2.9% 26.4%

DTMs 23.3 24.7 32.6 Growth 0.4% 6.0% 31.8%

Banks 162.7 212.2 254.5 Growth 36.2% 30.4% 20.0%

Whole sector 194.7 245.8 298.4

Growth 30.2% 26.2% 21.4%Sector without banks 32.0 33.6 43.8

Growth 6.1% 5.1% 30.4%

Net Portfolio/Total Assets 2010 2011 2012Credit Only MFIs 63.7% 67.1% 69.5%DTMs 60.7% 64.8% 61.3%Banks 48.7% 53.9% 51.7%

Banks (without Postbank) 54.7% 60.3% 57.1%

Whole sector 50.8% 55.5% 53.4%Sector without banks 61.5% 65.4% 63.4%

15% 17% 17%

39% 42% 42%

42%

42%

0

10,000

20,000

30,000

40,000

50,000

60,000

2010 2011 2012

KES

Mill

ions

Gross Loan Portfolio Size (Microfinance)



Credit-only MFIs achieved the strongest portfolio growth in 2012 (31%), followed by DTMs (25%) and Banks. The faster growth of the Credit-only MFIs’ and DTMs’ loan book has lead to an increase of their share in the sector’s total portfolio in 2012, compared to Banks. As of 2012, Banks, DTMs and Credit-only MFIs account respectively for 42%, 42% and 17% of the sector’s total loan book.

Table 313

The growth of the number of active borrowers is moderate (+5.5% and +8.1% for the whole sector and the sector without banks respectively) and slower than the portfolio growth, indicating an increase of the average outstanding loan amount for all segments. The growth in number of microfinance active borrowers is much higher for Credit only MFIs (+21%) than for Banks (-3.4%) and DTMs (+0.5%). As expected, the average outstanding loan balance is the lowest for Credit only MFIs, followed by DTMs then Banks; and remains relatively low compared to the GDP per capita, suggesting a fair level of accessibility of loans.

13 As for Equity Bank and Jamii Bora Bank, only their microfinance portfolio was taken into account according to the banks’ internal definition (the non-microfinance portfolio was excluded). Due to lack of data, K-Rep total portfolio was taken into account.

Table 414

Women represent a large majority of borrowers (65.6% of the entire sector and 70.9% of the sector without bank’s active borrowers in 2012) but their share has been decreasing over the period of analysis. DTMs are the segment having the highest share of women borrowers, as KWFT (64% of total DTMs active borrowers) lends almost exclusively to women.

Number of active clients stands at 1,732,290 for the entire sector and at 914,859 when banks are not considered. Just as the number of active borrowers, the number of active clients grew the fastest for Credit Only MFIs and Banks experienced a negative growth.

14 The average loan outstanding amount of banks was calculated: - excluding Postbank (no data on their number of staff

active borrowers); - including the whole portfolio and total number of

active borrowers of K-Rep; - Including only the microfinance portfolio and

microfinance active borrowers of Equity Bank and Jamii Bora Bank according to their own internal definitions.

Microfinance Portfolio Size and Growth (KES bn)

2010 2011 2012

Credit Only MFIs 5.8 6.2 8.1 Growth 27.3% 6.6% 30.6%

DTMs 15.0 16.4 20.5 Growth -2.2% 10.0% 24.9%

Banks N/A 19.9 20.5Growth N/A N/A 3.1%

Whole sector N/A 42.5 49.1

Growth N/A N/A 15.5%

Sector without banks 20.8 22.7 28.6

Growth 4.6% 9.0% 26.4%

2010 2011 2012

Credit Only MFIs 212,256 225,023 272,428 Growth N/A 6.0% 21.1%

% women 61.3% 56.6% 55.4%

DTMs 408,848 383,279 385,357

Growth N/A -6.3% 0.5%

% women 87.0% 82% 82%

Banks N/A 181,231 175,009

Growth N/A N/A -3.4%

% women N/A N/A 46%

Whole sector N/A 789,533 832,794

Growth N/A N/A 5.5%

% women N/A N/A 65.6%

Sector without banks 621,104 608,302 657,785

Growth N/A -2.1% 8.1%

% women 78.2% 72.7% 70.9%

Credit Only MFIs 27,441 27,590 29,769

% of GDP 43% 37% 36%

DTMs 36,578 42,907 53,283

% of GDP 57% 58% 65%

Banks N/A 104,340 111,529

% of GDP N/A 141% 135%

Outreach

Number of active

borrowers

Average outstanding loan amount


Table 515,16

As of December 2012, microfinance services are provided through a network of 566 branches across the country. Banks, DTMs and Credit-only MFIs have 292, 105 and 164 branches respectively. Nairobi province concentrates 136 branches, followed by the Rift Valley province (112) and the Central province (90). Western and North Eastern are the least served provinces with respectively 32 and 5 branches.

Chart 3

Nairobi province has the largest share of the sector’s loan portfolio (30%) but only 17% of the total number of active borrowers; indicating a higher average outstanding loan amount. It is worth noting that the Rift Valley province concentrates the largest share of the industry without bank’s loan book (24%), as well as the largest share of active borrowers of both the sector and the sector without banks (24% for both). North Eastern and Western provinces are the least served as they concentrate the lowest share of both the loan book and the number of active borrowers. Average outstanding loan balance is highest in Nairobi

15 2010: no data from Jamii Bora Bank, KEEF, Postbank, REMU, and SMEP. 2011: no data from Century, KEEF, Postbank, SMEP 2012: no data from Postbank 16 Whole number of active clients has been included for all banks.

province for the whole sector and in the North Eastern province for the sector without banks. Conversely, it is the lowest in the Western province for the whole sector and in the Coast province for the sector without banks.

Table 6

Table 7

The geographic coverage by county is detailed in Annex 3.

The largest share of clients deposits are concentrated in Nairobi province (48%), followed by Central (16.6%) and Rift Valley provinces (15.4%). It is interesting to note that Nairobi province concentrates a larger share of total deposits than of the loan book (47.8% of sector’s deposits vs 23% loan book) whereas it’s the opposite for the Rift Valley province (24% of sector’s loan book and 15.4% of sector’s deposits).

Number of active clients

2010 2011 2012

Credit Only MFIs 208,080 264,658 330,547Growth N/A 27.2% 24.9%

DTMs 575,121 562,275 584,312Growth N/A -2.2% 3.9%

Banks 691,087 817,970 817,431Growth N/A 18.4% -0.1%

Whole sector 1,474,288 1,644,903 1,732,290Growth N/A 11.6% 5.3%

Sector without banks 783,201 826,933 914,859Growth N/A 5.6% 10.6%

3619 23 33

1134

8

1117 21

19

6

23

8

4329

41

84

24

55

16

90

6585

136

5

41

112

32

020406080

100120140160

Central Coast Eastern Nairobi North Eastern

Nyanza Rift Valley

Western

Number of Branches per Province

Credit Only MFIs DTMs Banks Whole sector

ProvincesGross Loan Portfolio (KES bn)

% of the whole

sector's GLP

Number of Active

Borrowers

Average Outstanding

Loan Amount

(KES)Central 5.9 13% 103,451 57,441 Coast 4.0 9% 88,844 45,428 Eastern 5.5 12% 109,657 50,075 Nairobi 13.6 30% 129,183 104,926 North Eastern 0.1 0% 1,279 90,632 Nyanza 4.4 10% 92,837 46,965 Rift Valley 10.3 23% 175,403 58,777 Western 1.9 4% 45,273 42,693

Whole Sector - Geographic Coverage (Dec. 2012)

ProvincesGross Loan Portfolio (KES bn)

% of the sector

without banks' GLP

Number of Active

Borrowers

Average Outstanding

Loan Amount

(KES)Central 3.1 12% 75,578 41,340 Coast 2.7 10% 76,367 35,608 Eastern 3.5 13% 87,574 40,397 Nairobi 5.9 23% 93,371 63,253 North Eastern 0.0 0% 312 67,899 Nyanza 3.2 12% 79,450 40,757 Rift Valley 6.3 24% 140,141 45,279 Western 1.3 5% 36,114 36,877

Sector Without Banks - Geographic Coverage (Dec. 2012)


Chart 417

As of December 2012, the microfinance sector employs 12,377 staff while the sector without banks employs 4,856. The staff allocation ratio18 stands at 35% and 50% for the whole sector and the sector without banks respectively.

Table 819

22.. FFIINNAANNCCIIAALL SSTTRRUUCCTTUURREE,, SSOOLLVVEENNCCYY AANNDD LLIIQQUUIIDDIITTYY The balance sheet structure of the whole sector and the sector without banks are very different: the whole sector mostly funds itself with clients deposits (62% of total assets in 2012) while the sector without banks mostly funds itself with borrowings (38% of total assets), followed by clients deposits (32%). The composition of the balance sheet of the whole industry remains quite the same over the past three years. The sectors without banks experienced a reduction of the share of the debt funding and an increase of the share of clients’ deposits.

17 Only including Banks and DTMs. No data from Postbank. 18 Number of loan officers/total number of staff 19 The table shows the total number of active borrowers for all segments.

Chart 5

Chart 6

Table 9

As of Dec. 2012, total liabilities of the whole sector and the sector without banks amounted to KES 242.9 bn and KES 37.5 bn respectively; achieving a respective annual growth of 21.4% and 32%. The growth rate of total liabilities increased significantly in 2012 for the sector without banks; whereas it reduced for the whole sector.

Table 10

Banks’ and Credit only MFIs’ borrowings grew significantly in 2012 (+78% and +44% respectively), whereas the borrowings’ growth of DTMs was rather

16.6%5.1% 8.3%

47.8%

1.0% 3.9%15.4%

2.0%0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%


Nyanza Rift Valley

Western

Clients deposits per province

% of the sector's clients deposits

Staff(Dec. 2012)

# StaffStaff

allocation ratio

Credit Only MFIs 1,473 55%

DTMs 3,383 48%

Banks 7,521 28%

Whole sector 12,377 35%Sector without banks 4,856 50%

19% 19% 19%

62%65%

62%12%

12%

15%

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

2010 2011 2012

KES

Mill

ions

Equity and Liabilities Structure - Whole sector

Equity Deposits Compulsory savings Borrowings Other liabilities

14% 16% 15%21% 26%

32%12%10%

9%49% 43%

38%5% 6%

7%

0

10,000

20,000

30,000

40,000

50,000

2010 2011 2012

KES

Mill

ions

Equity and Liabilities Structure - Sector without banks

Equity Deposits Compulsory savings Borrowings Other liabilities

Equity and Liabilities Structure (Dec. 2012)

Credit only MFIs

DTMs Banks

Equity 21% 12% 19%

Deposits 0% 43% 67%

Compulsory savings 21% 5% 0%

Borrowings 49% 34% 11%

Other liabilities 9% 6% 3%

Total Liabilities (KES bn) 2010 2011 2012Credit Only MFIs 6.5 6.6 8.9

DTMs 21.2 21.8 28.6

Banks 129.8 171.7 205.4Whole sector 157.5 200.1 242.9

Growth N/A 27.0% 21.4%


Growth N/A 2.6% 32.0%


limited (+5%) as they were able to increase their leverage on clients deposits.

Table 11

In 2012, DTMs indeed experienced a stronger growth of the clients’ deposits than banks (+54.3% against +13.4%). Total deposits of the sector amounted to KES 185.6 bn in 2012; 92% of these deposits being held by Banks.

Table 12

As of December 2012, total equity of the whole sector and the sector without banks amounted to KES 55.5 bn and KES 6.4 bn respectively. Equity increased at a steady pace over the past two years (21.4% in average for the whole sector), enabling the sector to grow its assets size.

Table 13

The capital adequacy ratio of the whole sector and the sector without banks respectively stood at 18.6% and 14.5% as of Dec. 2012. The higher level of capitalization reflected by the Credit Only MFIs - with total equity representing 21% of their total assets - is in line with their risk profile considering their unregulated status. DTMs are the most highly geared with a debt/equity ratio reaching 7.1 in Dec. 2012 way above the sector’s average (4.4) and the sector without banks (5.9).

Table 14

The sector’s liquidity level is significantly higher when banks are included. As of December 2012, cash and banks over total assets ratio registers at 14% for the whole sector and 5% for the sector without banks; which is quite low. However, the liquidity ratio goes up to 25% for the sector without banks when financial investments are included.

Table 15

33.. PPRROOFFIITTAABBIILLIITTYY,, SSUUSSTTAAIINNAABBIILLIITTYY AANNDD EEFFFFIICCIIEENNCCYY The whole sector’s profitability and sustainability are high; with ROE, ROA and OSS standing at 24%, 4% and 146% respectively in 2012. When the sector without banks is considered, the level of profitability and sustainability drops significantly; with ROE, ROA and OSS reported at 8%, 1% and 107% respectively in 2012. After generally improving in 2011, profitability and sustainability slightly decreased for the whole sector in 2012 with a slight increase for the sector without banks.

Chart 7

Borrowings (KES bn) 2010 2011 2012Credit Only MFIs 3.5 3.8 5.5

DTMs 12.2 10.5 11.1


Growth N/A 21.3% 47.7%


Growth N/A -9.0% 15.7%

Clients Deposits (KES bn) 2010 2011 2012DTMs 8.0 10.0 15.4

Growth N/A 24.5% 54.3%

Banks 114.6 150.1 170.2Growth N/A 31.0% 13.4%

Whole sector 122.6 160.1 185.6

Growth N/A 30.5% 15.9%

Total Equity (KES bn) 2010 2011 2012Credit Only MFIs 2.2 2.3 2.4

DTMs 2.2 3.0 4.0


Growth N/A 22.8% 21.3%


Growth N/A 21.5% 21.3%

Solvency - Dec. 2012 Debt/Equity Capital Adequacy Ratio

Credit Only MFIs 3.8 21.0%

DTMs 7.1 12.3%

Banks 4.2 19.3%Whole sector 4.4 18.6%Sector without banks 5.9 14.5%

Liquidity - Dec. 2012 Cash and banks/TA

(Cash and banks +

investments)/TA

Cash and Banks/deposits

Credit Only MFIs 7% 22% N/A

DTMs 5% 26% 10%

Banks 16% 38% 23%

Whole sector 14% 36% N/A

Sector without banks 5% 25% N/A

0%

20%

40%

60%

80%

100%

120%

140%

160%

0%

5%

10%

15%

20%

25%

30%

2010 2011 2012

Profitability and Sustainability

ROE whole sector

ROE sector without banks

ROA whole sector

ROA sector without banks

OSS whole sector (right axis)

OSS sector without banks (right axis)


As of December 2012, Banks are not surprisingly the most profitable segment, with the ROE and ROA reported at 25.6% and 4.9%. However, it is worth noting that credit only MFIs show a higher level of profitability and sustainability than DTMs (OSS at 110.7% against 105.2% for DTMs). This performance is attributable to several factors: banks have other income streams; some DTMs have not broken even as transformation is costly and many credit-only MFIs are charging flat rates.

Table 16

Portfolio yield is the highest for Credit Only MFIs (38.5%) taking into consideration that a vast majority of Credit Only MFIs charge flat interest rates, followed closely by DTMs (37.2%). The Banks’ portfolio yield is significantly lower (23.1%). This is not surprising as DTMs and Credit-only MFIs concentrate in the core microfinance lending methodology involving higher operational costs and may also bear with more inefficiencies than banks hence a higher interest rate is applied to clients. Operating expense ratio is the highest for DTMs (28.4%) as they have to bear with post-transformation costs while some are yet to break even. Credit only MFIs are the segment bearing the highest funding expense ratio although they are the least indebted; reflecting limited pool of financial resources mainly relying on borrowings and limited bargaining power to source funds at competitive rates as compared to DTMs and Banks.

Chart 8

In response to the context of high inflation in Kenya in 2011, the cost of funding increased with most financial institutions adjusting their interest rates upwards. This

phenomenon is reflected in the tables below, showing an increase of the funding expense ratio and a significant increase of portfolio yield in 2012. The trends for the whole sector are overall positive: portfolio yield increased while efficiency improved and provision expenses reduced. However, the operating expenses ratio of both Credit only MFIs and DTMs increased over the period of analysis; which seems to underline a certain difficulty to achieve economies of scale.

Table 17

Table 18

Loan officer productivity is the highest in Banks whereas staff productivity is the highest in Credit only MFIs. This reflects the stronger concentration of Credit Only MFIs in their core lending business; which involves most of their staff (55% staff allocation ratio against 27% for banks20). The higher productivity of Banks LOs in terms of amounts reflects the disbursements of higher loan sizes (135% average outstanding balance on per-capita GNI against 36% for Credit Only MFIs). In 2012, the productivity of the sector without banks was 135 active borrowers and an outstanding loan portfolio of KES 5.9 mln per staff member.

Table 19

20 Without Postbank

Profitability and SustainabilityDec. 2012

ROE ROA OSS

Credit Only MFIs 8.2% 1.9% 110.7%

DTMs 7.0% 0.8% 105.2%

Banks 25.6% 4.9% 159.6%Whole sector 23.5% 4.4% 145.6%Sector without banks 7.5% 1.1% 106.8%

10.5% 9.8% 6.1% 6.7% 10.0%

2.1% 0.7%1.4% 1.3%

1.1%

26.6% 28.4%

14.4% 16.7%

27.9%

38.5% 37.2%

23.1% 25.5%

37.5%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

Credit only MFIs

DTMs Banks Whole sector Sector without banks

Evolution of Portfolio Revenues and Expenses Structure (Dec. 2012)

Funding expense ratio Provision expense ratioOperating Expenses ratio Portfolio yield

Portfolio Revenues and Expenses Structure

Whole sector2010 2011 2012

Portfolio yield 20.9% 21.9% 25.5%

Operating expenses ratio 18.6% 17.1% 16.7%

Provision expenses ratio 2.0% 1.5% 1.3%Funding expenses ratio 4.0% 4.4% 6.7%

Portfolio Revenues and Expenses Structure

Sector without banks2010 2011 2012

Portfolio yield 32.6% 33.6% 37.5%

Operating expenses ratio 25.1% 27.1% 27.9%

Provision expenses ratio 1.2% -0.3% 1.1%Funding expenses ratio 7.1% 8.6% 10.0%

# Borrowers

Amount (KES mln)

# Borrowers

Amount (KES mln)

Credit Only MFIs 337 10.0 185 5.5

DTMs 236 12.6 114 6.1

Banks (without Postbank) 384 72.7 106 20.1

Whole sector 319 38.1 119 14.2

Sector without banks 269 11.7 135 5.9

LO ProductivityProductivity (Dec. 2012)

Staff productivity


PPAARRTT IIII:: PPOORRTTFFOOLLIIOO QQUUAALLIITTYY AANNAALLYYSSIISS 22001133 AANNNNUUAALL RREEPPOORRTT OONN TTHHEE MMIICCRROOFFIINNAANNCCEE SSEECCTTOORR IINN KKEENNYYAA || SSEECCOONNDD EEDDIITTIIOONN

As of December 2012, the sector’s portfolio quality is fair; PAR 30 of the whole sector and the sector without banks standing at 9% and 7% respectively. It is worth noting that the Banks’ loan book 21 is less performing than the rest of the sector, while the Credit Only MFIs surprisingly show a portfolio quality better than average.

Chart 922,23

Over the period of analysis, portfolio quality improved steadily for Credit Only MFIs, while as for the rest of the sector, it improved significantly in 2011 before degenerating slightly in 2012.

21 As for Equity Bank and Jamii Bora Bank, only their microfinance portfolio was taken into account (the non-microfinance portfolio was excluded) according to the banks’ internal definition. Due to lack of data, K-Rep total portfolio was taken into account. 22 2010: no data received from Greenland Fedha, KEEF, Milango, Musoni, REMU, Taifa Option, Jamii Bora Bank. 2011: no data received from Century, Greenland Fedha, KEEF, Musoni, Taifa Option, U&I. 2012: no data received from Musoni, Taifa option, U&I. PostBank was excluded for all years. 23 As for Banks PAR data included is as follow: 2010: Equity Bank microfinance PAR 30 and K-Rep whole PAR 30. 2011 and 2012: Equity Bank and Jamii Bora microfinance PAR 30 and K-Rep whole PAR 30.

Write off ratio remained below 1% for the sector without banks over the period of analysis and for the whole sector in 2010 and 2012. However, both Equity Bank and K-Rep Bank realized a significant write off in 2011 (6.6%)11.

Table 2024

In December 2012, PAR is more concentrated in the PAR 1-90 ageing categories across all segments; although PAR>180 was quite significant for banks (8%).

Chart 1025

In 2012, risk coverage ratio registered 49% and 41% for the whole sector and the sector without banks respectively. Overall, risk coverage ratios are low compared to the sector’s international best practices, and generally decreased during the period of analysis. Credit Only MFIs are the segment reporting the highest risk coverage ratio, in line with their probable lighter collateral requirements.

24 Banks include whole write-off of K-Rep and Microfinance write off of Equity Bank. No data was received from Jamii Bora on their microfinance WO. 25 No data from received from Musoni, Taifa Option and U&I. Postbank was not included.

8% 7% 6%15% 6% 7%

17%

11% 13%

15%

8% 9%13%

6% 7%

0%

5%

10%

15%

20%

2010 2011 2012

Portfolio quality - PAR 30


Whole sector Sector without banks

Write off ratio 2010 2011 2012

Credit Only MFIs 0.5% 0.8% 0.9%

DTMs 0.7% 0.3% 0.0%

Banks 0.4% 6.6% 1.3%

Whole sector 0.6% 3.2% 0.7%

Sector without banks 0.7% 0.4% 0.3%

10%

6% 3% 2%

19%7% 4% 2%

1%

24%

13%10% 8%

5%

20%

9%6%

5% 3%

17%

7%4%

1%0%

5%

10%

15%

20%

25%

30%

PAR 1 PAR 30 PAR 90 PAR 180 PAR 365

Portfolio quality - PAR ageing balance (Dec. 2012)



NB: In chart 9, Banks’ PAR 30 includes the microfinance PAR 30 of both Equity Bank and Jamii Bora and the whole PAR 30 of K-Rep. Postbank was excluded as they only lend to staff members.

NB: The whole PAR 30 of the three banks’ stands at 7.0%, in line with the PAR 30 of the sector without banks.


Table 2126

Portfolio quality seems the weakest for Emergency loans when the whole sector is considered; while PAR 30 of the sector without banks concentrates in Asset finance loans. Agriculture loans27 are performing quite well compared to other sectors.

Chart 1128,29,30

Group lending methodology reports a better portfolio quality than individual lending.

Table 2215

26 For Banks, the risk coverage was calculated using the whole loan loss reserve, divided by the whole portfolio (as the loan loss reserve on the microfinance portfolio was not available for all banks). 27 Here, agriculture loans are only offered by DTMs and Credit Only MFIs as Equity Bank and Jamii Bora do not include Agriculture loans in their internal definition of microfinance. 28 No data for ECLOF Kenya, Musoni, Rupia, U&I, SISDO and KEEF. Postbank was not included. 29 As for Banks: microfinance PAR 30 of both Equity Bank and Jamii Bora bank and whole PAR 30 of K-Rep bank were included. 30 PAR 30 of Green products and housing loans are not displayed as they represent a negligible share of total portfolio and their PAR 30 is very low.

PAR 30 is highest in Nairobi and Coast province considering the whole sector and the sector without banks respectively. Portfolio quality is the best in Central, North Eastern, Nyanza and Rift Valley provinces, both including and excluding banks.

Chart 1231

31 No data from ECLOF Kenya, Greenland Fedha, Milango, Musoni, PAWDEP, Rafiki, and U&I. Postbank was excluded.

Risk coverage ratio(on PAR 30)

2010 2011 2012

Credit Only MFIs 70% 58% 60%

DTMs 35% 41% 35%

Banks (total LLR/total PAR30) na 56% 51%

Whole sector na 54% 49%

Sector without banks 41% 46% 41%

5.3% 5.3%

8.7% 6.7%7.9% 7.9%

27.5%

9.0%

4.0%

17.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%


PAR 30 per sector (Dec. 2012)

Agriculture Business Consumption Emergency Asset finance

PAR 30 per credit methodology (2012)

Sector without banks

Whole sector

Individual lending 8.1% 13.7%

Group lending 5.9% 4.2%

Individual and Group lending 14.6% na

7%

11%

8%

13%

7% 7% 7%

10%

6%

9%

7%7%

6% 6% 6%

8%

0%

2%

4%

6%

8%

10%

12%

14%


Nyanza Rift Valley

Western

PAR 30 per province (Dec. 2012)

PAR 30 whole sector PAR 30 sector without banks


PPAARRTT IIIIII:: PPRROODDUUCCTT OOFFFFEERR AANNAALLYYSSIISS 22001133 AANNNNUUAALL RREEPPOORRTT OONN TTHHEE MMIICCRROOFFIINNAANNCCEE SSEECCTTOORR IINN KKEENNYYAA || SSEECCOONNDD EEDDIITTIIOONN 11.. PPOORRTTFFOOLLIIOO CCOOMMPPOOSSIITTIIOONN

The composition of the loan book is quite similar for the whole sector and the sector without banks. Business loans represent the great majority of the portfolio, followed by consumption loans, Emergency loans and agriculture loans. Credit Only MFIs seem to have the most diversified portfolio.

Chart 1332

Table 23

The DTMs’ loan book is mostly concentrated in the group lending methodology while the largest share of the Credit-Only MFIs’ and Banks’ portfolios consists in individual lending.

Table 24

32 Banks include whole portfolio of K-Rep Bank and microfinance portfolio of both Equity Bank and Jamii Bora Bank. Postbank was excluded.

22.. CCRREEDDIITT PPRROODDUUCCTTSS OOFFFFEERR A wide range of credit products33 is offered in the market financing specific sectors such as business, agriculture, the consumer34 segment including health and education etc.; asset finance, housing and green35 products. The core credit products are business loans. The group business and individual loans are widely offered by the various actors in the industry. The terms of offer shows a mix of both reducing balance and flat interest rates. There is a wide disparity in the interest rates as revealed by the gap between the minimum and maximum rates especially in the sector excluding banks where majority of the players apply flat interest rates. The main fees include the loan application fees and the loan insurance fees. In terms of accessibility, the minimum loan size offered by the Banks, DTMs and Credit Only MFIs are levelled. The average outstanding loan amount is higher for individual business loans compared to group business loans. The loan term is dictated by the loan cycle and the loan amount and generally the whole sector is able to offer long term loans. Cash collateral are applicable under group lending but under individual lending this is less widely practiced in the banking and DTM segment compared to the Credit Only MFIs. The agricultural sector 36 reveals some differences with higher cash collateral requirements from the Credit Only MFIs. With regard to consumption loans, the Credit Only MFIs are dispensing more education (7 Credit Only MFIs) and health loans (5 Credit Only MFIs) compared to the DTMs (each 1 DTM). Green products are offered in relatively similar terms across the Banks, DTMs and Credit Only MFIs and the average loan outstanding amount is within a very narrow range and

33 Refer to the table below 34 Consumer loans are considered to finance activities which are not income generating and are meant for direct household consumption. 35 Green products either use renewable sources of energy or promote environmental conservation including solar products, water tanks, and energy saving cooking stoves, biogas digesters among others. 36 The agricultural sector under the banking segment is not featured due to the internal definition of the microfinance portfolio by the two banks excluding their agricultural portfolio and the generalized product offer provided by the third bank.

9.7%

81.1% 75.0%47.9%

85.2% 89.9%

9.1% 14.8%

22.8%

11.8%4.8% 5.0%18.4% 4.5%

4.7%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%


Credit Only MFIs

DTMs Banks

Gross Loan Portfolio per sector (Dec. 2012)

Agriculture Business Consumption Green products

Emergency Asset finance Housing

Gross Loan Portfolio Dec. 2012 - KES mln


Agriculture 1,013 1,013Business 38,861 21,194Consumption 4,352 4,189Green products 276 276Emergency 2,311 1,421Asset finance 1,084 159Housing 22 13

Gross Loan Portfolio per Credit Methodology

Dec.12

Individual lending

Group lending

Credit Only MFIs 57% 43%DTMs 44% 55%Banks 62% 38%Whole sector 53% 46%Sector without banks 47% 52%


it is fairly is accessible to clients. Asset Finance is provided at significantly higher costs in the Credit Only segment with regard to interest and cash collateral compared to the banks and DTMs and the loan size range offered by Credit Only MFIs confirms the limited pool of finance. Housing is an emerging sector in the microfinance industry that is so far provided by one bank and one DTM within similar terms, with the bank having more flexibility on the extension of the term. In the Credit Only segment, there is a tendency to overprice37 the emergency loan based on its typical short term maturity.

37 Maximum rate was 10% flat per month


Prod

uct

No.

of C

redi

t-on

ly

MFI

s, D

TMs a

nd

Bank

s

Inte

rest

rate

(M

in.-M

ax.)

Per A

nnum

Fe

es

Com

puls

ory

savi

ngs

(M

in. –

Max

.)

Term

(M

in.-M

ax.)

Mon

ths

Aver

age

Out

stan

ding

Loa

n Am

ount

(KES

)

Amou

nt

(Min

.-Max

.) KE

S

Busi

ness

Gr

oup

Loan

s

3 Ba

nks

20 -

22%

fla

t 43

%

redu

cing

1%

- 1

.5%

LAF

1

n

a4

LIF

2 20

% -

50%

1 - 3

6 12

3,29

5 1,

000

- <

1,00

0,00

0

5 DT

Ms

16%

- 24

%

flat

24%

- 34

.8%

re

duci

ng

2% -

3%

L

AF

10%

- 20

%

1 - 6

0 45

,037

5,

000

- 20,

000,

000

1.

25%

- 2%

LIF

13

Cre

dit O

nly

MFI

s 18

% -

24%

fla

t 18

% -

43%

red

ucin

g 1%

- 4

%

LAF

10

% -

40%

1

- 55

27,3

29

5,00

0 - 5

,500

,000

1.6%

- 3%

LI

F

Busi

ness

Indi

vidu

al

Loan

s

3 Ba

nks

17%

- 25

%

flat

38.5

%

redu

cing

1%

- 1

.5%

LAF

20

% -

22%

6

- 60

124,

442

5,00

0 -

>1,

000,

000

na

L

IF

7 DT

Ms

16%

- 42

%

flat

16%

- 34

.8%

re

duci

ng

1.5%

- 3%

LA

F 10

- 25

%

1 - 6

0 17

1,37

0 1,

000

- 20,

000,

000

2%

LIF

11

Cre

dit O

nly

MFI

s 15

% -

24%

fla

t 18

% -

42%

re

duci

ng

1% -

4.5

% L

AF

10%

- 30

%

1 - 6

0 83

,371

5,

000

- 5,0

00,0

00

1%

- 3%

L

IF

Agric

ultu

re L

oans

4 DT

Ms

16%

- 25

%

flat

34.8

%

redu

cing

1%

- 3%

LAF

10%

- 20

%

3 - 6

0 51

,630

5,

000

- 5,0

00,0

00

na

LIF

10

Cre

dit O

nly

MFI

s 15

% -

22%

fla

t 18

% -

32%

re

duci

ng

1% -

4%

LA

F 15

% -

36%

1

– 36

27

,661

3,

000

- 3,0

00,0

00

2 %

LIF

Gene

ral

Cons

umpt

ion

Loan

s (in

clud

ing

sala

ry

loan

s)

1 Ba

nk

23%

fla

t

na

L

AF

N/A

5 1

- 36

22,8

52

1,00

0 - 2

00,0

00

na

LIF

4

DTM

s 12

% -

25%

fla

t 1.

5% -

3%

LAF

10%

- 20

%

1 - 6

0 68

,636

3,

000

- 3,0

00,0

00

n

a

LIF

4

Cred

it O

nly

MFI

s 20

.5%

- 30

%

flat

18%

re

duci

ng

1.5%

- 3%

LA

F 10

% -

30%

1

- 36

30,0

44

3,00

0 - 3

,000

,000

2%

L

IF

Educ

atio

n Lo

ans

1 DT

M

24%

fla

t

3%

LA

F N

/A

1 -1

2 21

,787

5,

000

- 100

,000

na

L

IF

7 Cr

edit

Onl

y M

FIs

16%

- 24

%

flat

20.8

%

redu

cing

1%

- 2%

LAF

10%

- 20

%

1 -3

6 25

,696

3,

000

- 1,5

00,0

00

1.6%

- 3%

LI

F

Heal

th L

oans

(in

clud

ing

IPF3 )

1 Ba

nk

13%

fla

t

na

L

AF

N/A

3

- 10

65,3

20

Min

. 5,0

00

na

LIF

1

DTM

10

%

flat

na

LAF

N

/A

1 - 1

0 15

9,32

8 10

,000

- 1,

000,

000

5 Cr

edit

Onl

y M

FIs

18.5

% -

36%

fla

t 42

%

redu

cing

1%

- 3.

5% L

AF

10%

- 20

%

1 - 2

4 92

,220

3,

000

- 100

,000

1%

- 2%

L

IF


Tabl

e 25

: Cre

dit p

rodu

cts (

sour

ce: d

ata

from

3 b

anks

38, 7

DTM

s and

21

Cred

it O

nly

MFI

s)

1 LAF

- Loa

n Pr

oces

sing

Fee/

Loa

n Co

mm

itmen

t Fee

/ Loa

n Ap

prai

sal F

ee

2 LIF

- Loa

n In

sura

nce

Fee

3 IPF

- Ins

uran

ce P

rem

ium

Fin

anci

ng

4 n

a - n

ot a

vaila

ble

5 N/A

- no

t app

licab

le/c

harg

ed

*Dis

clai

mer

: Ad

equa

te b

reak

dow

ns o

f fee

s an

d in

tere

st ra

tes

wer

e no

t pro

vide

d by

all

part

icip

ants

and

the

abov

e ta

ble

is co

nsid

ered

a c

lose

pro

xy o

f the

pro

duct

offe

r in

the

mic

rofin

ance

sec

tor.

The

bank

s’ pr

oduc

t of

fer

is no

t st

anda

rdize

d w

here

Equ

ity a

nd J

amii

Bora

cla

ssifi

ed t

he lo

an p

rodu

cts

cons

ider

ed m

icro

finan

ce a

ccor

ding

to

thei

r in

tern

al d

efin

ition

whi

le K

-REP

Ban

k pr

ovid

ed t

he f

ull

port

folio

. In

the

tabl

e, o

nly

the

loan

app

licat

ion

and

the

loan

insu

ranc

e fe

es a

re fe

atur

ed h

owev

er th

e fe

e st

ruct

ure

is no

t nec

essa

rily

limite

d to

thes

e tw

o fe

es; b

ut th

is w

as n

ot d

ispla

yed

due

to

lack

of a

dequ

ate

info

rmat

ion.

The

loan

app

licat

ion

fee

was

in s

ever

al c

ases

rep

orte

d as

a c

onso

lidat

ed fe

e an

d as

suc

h, t

he lo

an in

sura

nce

fee

does

not

nec

essa

rily

appl

y in

som

e in

stan

ces.

A

rele

vant

num

ber o

f MFI

s req

uire

com

pulso

ry sa

ving

s und

er b

oth

grou

p an

d in

divi

dual

lend

ing.

Col

lect

ion

of c

ompu

lsory

savi

ngs u

nder

indi

vidu

al le

ndin

g is

less

wid

ely

prac

ticed

in th

e ba

nkin

g an

d DT

M se

gmen

t sin

ce 1

ban

k an

d 5

DTM

s com

man

ding

a la

rge

clie

nt b

ase

do n

ot re

quire

cas

h co

llate

ral f

rom

indi

vidu

als,

how

ever

mos

t Cre

dit O

nly

MFI

s req

uire

cas

h co

llate

rals

whe

re 7

Cre

dit O

nly

MFI

s do

not

requ

ire th

is un

der i

ndiv

idua

l len

ding

. In

the

tabl

e, th

e m

axim

um lo

an a

mou

nt is

in a

bsol

ute

figur

es; h

owev

er th

is m

ay n

ot n

eces

saril

y be

the

ceili

ng w

ith ro

om to

lend

up

to 2

5% a

nd

5% o

f cor

e ca

pita

l to

a sin

gle

borr

ower

pro

vide

d fo

r und

er th

e Ba

nkin

g an

d DT

M re

gula

tions

resp

ectiv

ely.

Som

e se

ctor

s und

er th

e ba

nkin

g se

gmen

t are

not

feat

ured

as f

irst,

Equi

ty B

ank

and

Jam

ii Bo

ra B

anks

’ int

erna

l def

initi

ons o

f the

mic

rofin

ance

por

tfol

io d

o no

t inc

lude

all

sect

ors a

nd se

cond

, dat

a pr

ovid

ed b

y on

e of

the

bank

s lac

ked

deta

ils.

38 E

quity

Ban

k, Ja

mii

Bora

Ban

k an

d K-

Rep

Bank

Prod

uct

No.

of C

redi

t-on

ly

MFI

s, D

TMs a

nd

Bank

s

Inte

rest

rate

(M

in.-M

ax.)

Per A

nnum

Fe

es

Com

puls

ory

savi

ngs

(Min

. – M

ax.)

Term

(M

in.-M

ax.)

Mon

ths

Aver

age

Out

stan

ding

Loa

n Am

ount

(KES

)

Amou

nt

(Min

.-Max

.) KE

S

Gree

n Pr

oduc

ts

1 Ba

nk

24%

fla

t

na

LA

F N

/A

1 - 1

2 3,

699

1,00

0 - 1

00,0

00

na

LIF

1 DT

M

22%

fla

t 34

.8%

re

duci

ng

1.5%

L

AF

10%

3

-36

8,79

5 10

,000

- 30

0,00

0 %

- %

LI

F 4

Cred

it O

nly

MFI

s 20

% -

24%

fla

t 1%

- 2%

L

AF

20%

1

- 36

7,31

8 1,

000

- 300

,000

2%

LI

F

Asse

t Fin

ance

Loa

ns

1 Ba

nk

13%

fla

t 25

% r

educ

ing

na

LA

F N

/A

1 - 1

20

431,

646

Min

. 100

,000

na

LI

F 3

DTM

s 14

.5%

- 24

% fl

at

18%

redu

cing

2.

5% -

3% L

AF

N/A

1

- 48

622,

355

5,00

0 - 6

,500

,000

%

- %

L

IF

7 Cr

edit

Onl

y M

FIs

20%

- 30

% fl

at

42

% re

duci

ng b

alan

ce

1% -3

.5%

LA

F 15

% -

37%

1

- 24

38,0

41

5,00

0 - 2

,000

,000

1%

- 3%

L

IF

Hous

ing

Loan

s

1 Ba

nk

18%

fla

t 25

%

redu

cing

na

LA

F N

/A

1 - 2

40

763,

300

Min

. 300

,000

na

LI

F 1

DTM

24

%

flat

19

% -

21%

re

duci

ng

3

%

LAF

N/A

1

- 120

1,

026,

303

100,

000

- 7,5

00,0

00

na

LIF

Emer

genc

y Lo

ans

1 Ba

nk

25%

redu

cing

na

LA

F N

/A

Max

12

220,

028

na

na

LIF

6 Cr

edit

Onl

y M

FIs

15%

- 12

0%

Min

1%

LAF

10%

- 30

%

1 - 4

8 39

,173

5,

000

- 400

,000

M

ax 8

%

LIF


33.. SSAAVVIINNGGSS PPRROODDUUCCTTSS OOFFFFEERR The provision of savings services39 is limited to the Banks and DTMs that are regulated and licensed to mobilize savings from the public. The main savings products include the term deposits and savings accounts but in addition banks are the only segment currently authorized to offer demand deposits managed under current accounts40. Term deposits are currently offered by 3 banks and 6 DTMs (interest rates at 1-12% for banks and 3.75-12% for DTMs) and the term spans 1-36 months. Demand deposits are offered by the 4 banks (interest at 0 – 4% per annum). The savings products broadly targets individuals in formal and informal sector, savings groups, youth and corporate organizations. The minimum balance is tailored to the target client with several accounts not requiring a minimum balance while the minimum balance can range between tens, hundreds or thousands for individuals and even hundreds of thousands for corporates.

44.. OOTTHHEERR FFIINNAANNCCIIAALL AANNDD NNOONN--FFIINNAANNCCIIAALL SSEERRVVIICCEESS The credit life insurance is widely offered and is often inclusive of fees incurred during loan application. Additional insurance services offered by the institutions usually as agents of insurance companies include health (1 Bank, 3 Credit Only MFIs), agriculture (1 DTM, 3 Credit Only MFIs), life (3 Credit Only MFIs) and auto insurance (2 DTMs). The use of mobile money transfer services41 has been embraced as a service delivery mode for payments and disbursements.

Group trainings are the most widely offered non financial services (9 Credit Only MFIs, 2 DTMs and 2 Banks) covering some basic aspects of group, loan and business management. 4 Credit Only MFIs and 1 DTM report to offer business trainings. Health education is provided by one DTM and one Credit Only MFI.

39 Refer to the table below. 40 Current account is a usually a non-interest bearing account meant to run business transactions where there is no restriction on the number and amount of deposits and withdrawals. 41 Some institutions with robust MIS systems have integrated mobile banking platforms.


18

Tabl

e 26

: Sav

ings

pro

duct

s (so

urce

: dat

a fr

om 4

Ban

ks a

nd 7

DTM

s)

na -

not a

vaila

ble

N/A

- no

t app

licab

le/c

harg

ed

Not

e: G

iven

the

une

ven

qual

ity a

nd l

evel

of

deta

il of

the

inf

orm

atio

n re

ceiv

ed,

this

tabl

e ca

n be

con

sider

ed a

s a

clos

e pr

oxy

of t

he s

avin

gs p

rodu

ct o

ffer

amon

g DT

Ms

and

Bank

s.

Prod

uct

No.

of D

TMs

and

Bank

s In

tere

st ra

te

(Min

.-Max

) Fe

es

(KES

) M

inim

um

acce

pted

bal

ance

(K

ES)

Pena

lty if

with

draw

al b

efor

e th

e te

rm

(KES

)

Term

Term

Dep

osits

3 Ba

nks

5%

- 12

% a

nnua

lly

1% -

8% (o

n m

atur

ity)

No

fee

25 -1

00 fo

r cou

nter

with

draw

als

500

to c

lose

the

acco

unt

500

- 50

,000

N

o pe

nalty

15

0 - 4

50

3% -

10%

with

out n

otic

e Lo

se a

ll in

tere

st

1 - 3

6 m

onth

s

6 DT

Ms

Neg

otia

ble

3.75

% -

12%

(on

mat

urity

) N

one

500

for a

ccou

nt c

losu

re

Nil

300

- 30,

000

Non

e Lo

se a

ll in

tere

st

No

limit

3 m

onth

-10

year

s

Dem

and

Dep

osits

(C

urre

nt a

ccou

nt)

4 Ba

nks

0 - 4

% p

.a.

300

- 500

to c

lose

the

acco

unt

25 -

100

for c

ount

er w

ithdr

awal

s 14

.50

per c

hequ

e bo

ok le

af

25 fo

r ATM

with

draw

al

N /A

Non

e

N/A

Ord

inar

y sa

ving

s

7 D

TMs

0 - 6

% p

.a.

0.85

% -

4.15

% p

.m.

0.5%

-3%

hal

f yea

rly

Neg

otia

ble

Non

e 50

per

with

draw

al

50

per p

age

for a

ccou

nt st

atem

ent

200-

1,00

0 fo

r acc

ount

clo

sure

Nil

10,0

00

Non

e

No

limit

0 - 3

mon

ths

Yout

h Sa

ving

s

2 ba

nks

0.75

%-2

% p

.a.

30

0 - 5

00 to

clo

se th

e ac

coun

t 25

- 10

0 fo

r cou

nter

with

draw

als

14.5

0 pe

r che

que

book

leaf

25

for A

TM w

ithdr

awal

Nil

200

Non

e N

/A

4 DT

Ms

1.5%

- 4%

p.m

. 0

- 6%

p.a

. 20

0 - 5

00 to

clo

se th

e ac

coun

t 50

per

with

draw

al li

mite

d to

3 ti

mes

per

yea

r N

il 20

0 - 5

00

Non

e N

/A

Savi

ngs g

roup

2 Ba

nks

0 - 3

% p

.a.

300

- 500

to c

lose

the

acco

unt

25 -

100

for c

ount

er w

ithdr

awal

s N

il 2,

000

Non

e N

/A

4 DT

Ms

0 - 6

% p

.a.

3.25

% -

5% p

.m.

Non

e 50

per

with

draw

al

50 p

er p

age

for a

ccou

nt st

atem

ent

200

- 1,0

00 fo

r acc

ount

clo

sure

Nil

5,00

0 N

one

N/A

Farm

ers s

avin

gs

1 ba

nk

0 - 1

% p

.a.

500

to c

lose

the

acco

unt

25 -

100

for c

ount

er w

ithdr

awal

s N

/A

Non

e N

/A

High

net

wor

th a

nd

corp

orat

e sa

ving

s 2

bank

s 0

- 8%

p.a

. 30

0 - 5

00 to

clo

se th

e ac

coun

t 25

- 10

0 fo

r cou

nter

with

draw

als

Nil

50,0

00 -

300,

000

Non

e N

/A

Call

depo

sit

1 Ba

nk

2 - 4

% (

on m

atur

ity)

Na

50,0

00

Non

e 1

- 7 d

ays

Dias

pora

savi

ngs

1 Ba

nk

0.75

% -

2% p

.a.

300

to c

lose

the

acco

unt

5,00

0 N

one

N/A

Scho

ols s

avin

gs

1 ba

nk

0 - 1

% p

.a.

1,00

0 to

clo

se th

e ac

coun

t 14

.50

per c

hequ

e bo

ok le

af

Nil

Non

e N

/A

Stud

ents

savi

ngs

1 Ba

nk

0 - 1

% p

.a.

500

to c

lose

the

acco

unt

25 -1

00 fo

r cou

nter

with

draw

als

Nil

Non

e N

/A


PPAARRTT IIVV:: CCOOMMPPEETTIITTIIOONN AANNAALLYYSSIISS AANNNNUUAALL RREEPPOORRTT OONN TTHHEE MMIICCRROOFFIINNAANNCCEE SSEECCTTOORR IINN KKEENNYYAA || SSEECCOONNDD EEDDIITTIIOONN The microfinance sector is highly competitive with the presence of downscaling commercial banks and the ever growing base of microfinance service providers both in the formal and informal sector. The deepening of the financial sector is driven by the thriving mobile banking and payment system. The SACCOs are at the centre of the cooperative movement 42 in Kenya playing a key role with deepened penetration especially in rural areas and they pose relevant competition to the microfinance industry as a whole. The stakes are expected to get higher with entry of new players more so in the DTM segment, SACCOs and the informal segment. Increased competition is expected with the amendment of the Microfinance Act that will extend the financial services offered by the DTMs increase as well as the continued technological innovations aimed at increased outreach and cost effective service delivery. The risk of client over indebtedness is relevant in the sector due to strong competition, the fact that the credit bureau is yet to be extended to a relevant market segment43 and the limited informal information sharing avenues.

The Banks and the DTMs view savings mobilization44 as an area of priority with most pressure coming from the banking sector with potential to grow their deposits base. The Banks are very price sensitive with similar product offer and higher tendency to follow price so as to remain on the cutting edge. The DTMs also reported very high competitive pressure in terms of pricing however they have less flexibility to adjust prices due to their financing structure 45 . Client recruitment is also a challenge in the DTM segment due to the limitations of their service offer46 compared to banks. The Credit Only MFIs face stiff competition in

42 The establishment of SACCO Societies Act 2008 places the licensing, supervision and regulation of deposit taking under the SACCO Societies Regulatory Authority (SASRA). Currently there are 73 deposit-taking SACCOs as per the law and with over 15,000 cooperative societies registered countrywide. 43 The Credit Only MFIs and the SACCOs are yet to be included in the mainstream credit information sharing. 44 Ranks were generated based on weighted scores per segment. 45 DTMs rely on 34% of borrowing, 43% deposits compared to 11% loans and 67% savings for banks. 46 DTMs are not currently allowed to issue third party cheques, operate current accounts and perform foreign trade operations

terms of pricing coming from all segments within the market. The Credit Only MFIs primarily fund operations from borrowings with a relatively higher funding expense ratio and their prices are dictated by their cost structure. Second most competitive area is assigned to client recruitment for the Credit Only MFIs given their limited branch network47 and the fact that their services offer is limited to credit services.

Overall, the internal operational factors were ranked as secondary priority across all segments including the risk of staff poaching, the capacity to fund raise and the geographical area of operation. The trend in the area of operation indicates higher concentration of institutions in the southern parts of the country and a higher density in the main towns and cities; demonstrating that the geographic positioning to a large extent is not a deterring factor in competition.

In terms of product features, the interest rate presents the highest competitive pressure across all segments. The Banks and DTMs placed second priority to the loan size while the Credit Only MFIs ranked the loan term as the second highest competitive pressure reflecting the nature of operations and limitations per segment.

47 Based on the participants to the publication, the average number of branches per MFI is 8 branches compared to 15 and 74 branches per DTM and Banks respectively.


PPAARRTT VV:: DDEEVVEELLOOPPMMEENNTT OOFF TTHHEE RREEGGUULLAATTOORRYY FFRRAAMMEEWWOORRKK AANNNNUUAALL RREEPPOORRTT OONN TTHHEE MMIICCRROOFFIINNAANNCCEE SSEECCTTOORR IINN KKEENNYYAA || SSEECCOONNDD EEDDIITTIIOONN The scope of the regulatory framework in Kenya foresees Prudential Regulation for the formal sector specifically the Banks and the DTMs. The Microfinance Act (2006) that was implemented in May 2008 and the Microfinance Regulations (2008) issued as secondary legislation sets out the legal, regulatory and supervisory framework for the microfinance industry in Kenya. The Credit Only MFIs do not fall under the jurisdiction of CBK’s microfinance regulation and no prudential regulation is foreseen for them, yet as technically since they do not collect deposits from the public. However the Ministry of Finance is at the forefront in developing the Financial Service Consumer Protection Bill that will be the policy framework for the financial sector. The policy seeks to bring all financial services providers48 including the Credit Only MFIs under the scope of Consumer Protection. The oversight on responsible practices will be entrusted to a proposed enforcement agency with market-wide mandate to protect financial consumers and to enhance trust towards the financial system.

Positive strides have been made in terms of policy developments for DTMs within the past year. The CBK issued the ‘Guideline on the Appointment and Operations of Third Party Agents by DTMs’ in December 201149 thus extending the agency model to the microfinance sector in a bid to promote financial inclusion. The CBK is charged with vetting and approval of entities proposed to be appointed as agents. The ‘Guideline on the Opening, Relocation and Closure of Marketing Offices and Agencies of Deposit Taking Microfinance Institutions’ was later issued giving the DTMs the option to operate their marketing offices and branches as self-managed agencies. The move meant to extend their footprint and to address some of the DTM challenges that involved high set up costs for branches. The DTMs have widely embraced the concept of self managed agencies and it is highly preferred considering that external agents for DTMs are yet to be approved.

48 The policy framework will be applicable to banks, DTMs, SACCOs, mobile financial service providers and insurance providers. 49 CBK first rolled out the agency model in the banking industry in May 2010 as part of the initiatives to enhance access and penetration of cost effective financial services.

The proposed amendment of the Microfinance Act (2006) is in the advanced stages and it will allow DTMs to offer a wider range of financial services and products including the issuance of third party cheques, operating current accounts and foreign trade operations. The amendment foresees a name change where deposit taking microfinance institutions will newly be referred to as Microfinance Banks.

The foreseen key reform expected to streamline the credit market in the short term will be the sharing of positive information with the Credit Bureaus and the inclusion of DTMs in credit sharing systems with banks. The Banking and the Microfinance Act were amended following the enactment of the Finance Act 2012 for inclusion of DTMs in credit sharing system with banks. The participation of DTMs in the credit information sharing is expected to kick off in the short term. The Central Bank of Kenya Act was also amended to require banks to share positive information on their customers through CRBs. The sharing of positive information will effectively increase credit access and reduce costs where borrowers will be profiled according to the credit scores generated which lenders will use to arrive at interest rates. The Association of Kenya Credit Providers was recently established as the body that brings together all lenders whereby in addition to DTMs, credit referencing will soon be extended to the SACCOs and other utility companies. Metropol and TransUnion, the two licensed bureaus are currently piloting positive information sharing.

As an initiative, AMFI is lobbying for a Credit Only MFIs’ specific bureau, currently in the development phase.

The DTMs specifically encounter challenges both pre and post transformation. The above-mentioned policy initiatives on the agency model to some extent has addressed the challenge of high set up costs where previously DTMs would be required to set up fully fledged branches for DTM operations. The pre-transformation challenges that may lengthen the licensing process includes the fulfilment of the ownership structure with maximum shareholding of 25%, investment in robust MIS and formulation of feasible strategic plans. The post transformation


challenges revolve around operations including time to breakeven due to high operational costs, the development of effective deposit mobilization strategies and the current limitations50 of the service offer as DTMs are excluded from national payment system. The foreseen amendment of the Microfinance Act will works towards minimizing some these challenge.

50 DTMs are not currently allowed to issue third party cheques, operate current accounts and perform foreign trade operations and other investment banking operations.


BBAALLAANNCCEE SSHHEEEETT 22001133 AANNNNUUAALL RREEPPOORRTT OONN TTHHEE MMIICCRROOFFIINNAANNCCEE SSEECCTTOORR IINN KKEENNYYAA || SSEECCOONNDD EEDDIITTIIOONN

2010 2010 2011 2011 2012 2012Amount (KES mln) % Amount (KES mln) % Amount (KES mln) %

Equity Bank 133,890.0 82.3% 176,911.0 83.4% 215,829.0 84.8%Jamii Bora Bank 1,726.6 1.1% 2,070.0 1.0% 3,479.7 1.4%K-REP Bank 7,670.0 4.7% 9,318.7 4.4% 9,546.1 3.8%Postbank 19,460.7 12.0% 23,864.7 11.2% 25,677.5 10.1%Total 162,747.3 100.0% 212,164.4 100.0% 254,532.2 100.0%


Century DTM na na na na 93.6 0.3%Faulu DTM 4,390.1 18.8% 5,140.6 20.8% 7,637.7 23.4%KWFT DTM 18,958.4 81.2% 17,035.8 68.9% 20,384.4 62.5%Rafiki DTM na na 440.7 1.8% 1,838.2 5.6%REMU DTM na na 124.3 0.5% 181.7 0.6%SMEP DTM na na 1,998.2 8.1% 2,289.5 7.0%SUMAC DTM na na na na 181.5 0.6%Total 23,348.5 100.0% 24,739.6 100.0% 32,606.6 100.0%


AAR Credit Services 305.6 3.5% 547.0 6.2% 631.8 5.6%Bimas 402.8 4.7% 537.9 6.0% 604.0 5.4%Century na na 88.8 1.0% na naECLOF Kenya 728.4 8.4% 789.0 8.9% 824.4 7.3%Greenland Fedha 238.7 2.8% 539.9 6.1% 1,373.5 12.2%Jitegemea Credit Scheme 209.3 2.4% 467.6 5.3% 533.4 4.7%Juhudi Kil imo 174.5 2.0% 265.3 3.0% 469.0 4.2%Kadet 871.6 10.1% 794.3 8.9% 861.9 7.7%KEEF 60.0 0.7% 61.8 0.7% 100.0 0.9%MicroAfrica 674.6 7.8% 905.0 10.2% 1,281.7 11.4%Milango Financial Services 128.1 1.5% 174.7 2.0% 165.0 1.5%Musoni 71.0 0.8% 89.1 1.0% 172.1 1.5%Opportunity Kenya 400.9 4.6% 604.1 6.8% 717.0 6.4%PAWDEP 758.5 8.8% 709.9 8.0% 737.1 6.6%Platinum Credit 888.0 10.3% 1,202.4 13.5% 1,520.6 13.5%REMU 101.4 1.2% na na na naRupia Ltd 21.0 0.2% 24.3 0.3% 29.3 0.3%Samchi Credit na na na na 17.4 0.2%SISDO 414.5 4.8% 467.4 5.3% 526.8 4.7%SMEP 1,859.6 21.5% na na na naSpringboard Capital Ltd na na 29.7 0.3% 56.9 0.5%SUMAC Credit 85.4 1.0% 127.8 1.4% na naTAIFA Option Microfinance 21.8 0.3% 35.3 0.4% 67.2 0.6%U & I na na 51.6 0.6% 54.4 0.5%YEHU 227.2 2.6% 380.4 4.3% 495.3 4.4%Total 8,642.9 100.0% 8,893.3 100.0% 11,238.7 100.0%

TOTAL ASSETS

DTMs

Credit only MFIs

Banks


2010 2010 2011 2011 2012 2012

Amount (KES mln) % Amount (KES mln) % Amount (KES mln) %AAR Credit Services 305.6 1.0% 547.0 1.6% 631.8 1.4%Bimas 402.8 1.3% 537.9 1.6% 604.0 1.4%Century DTM na na 88.8 0.3% 93.6 0.2%ECLOF Kenya 728.4 2.3% 789.0 2.3% 824.4 1.9%Faulu DTM 4,390.1 13.7% 5,140.6 15.3% 7,637.7 17.4%Greenland Fedha 238.7 0.7% 539.9 1.6% 1,373.5 3.1%Jitegemea Credit Scheme 209.3 0.7% 467.6 1.4% 533.4 1.2%Juhudi Kil imo 174.5 0.5% 265.3 0.8% 469.0 1.1%Kadet 871.6 2.7% 794.3 2.4% 861.9 2.0%KEEF 60.0 0.2% 61.8 0.2% 100.0 0.2%KWFT DTM 18,958.4 59.3% 17,035.8 50.7% 20,384.4 46.5%MicroAfrica 674.6 2.1% 905.0 2.7% 1,281.7 2.9%Milango Financial Services 128.1 0.4% 174.7 0.5% 165.0 0.4%Musoni 71.0 0.2% 89.1 0.3% 172.1 0.4%Opportunity Kenya 400.9 1.3% 604.1 1.8% 717.0 1.6%PAWDEP 758.5 2.4% 709.9 2.1% 737.1 1.7%Platinum Credit 888.0 2.8% 1,202.4 3.6% 1,520.6 3.5%Rafiki DTM na na 440.7 1.3% 1,838.2 4.2%REMU DTM 101.4 0.3% 124.3 0.4% 181.7 0.4%Rupia Ltd 21.0 0.1% 24.3 0.1% 29.3 0.1%Samchi Credit na na na na 17.4 0.0%SISDO 414.5 1.3% 467.4 1.4% 526.8 1.2%SMEP DTM 1,859.6 5.8% 1,998.2 5.9% 2,289.5 5.2%Springboard Capital na na 29.7 0.1% 56.9 0.1%SUMAC DTM 85.4 0.3% 127.8 0.4% 181.5 0.4%TAIFA Option Microfinance 21.8 0.1% 35.3 0.1% 67.2 0.2%U & I na na 51.6 0.2% 54.4 0.1%YEHU 227.2 0.7% 380.4 1.1% 495.3 1.1%Total 31,991.3 100.0% 33,632.9 100.0% 43,845.3 100.0%

SECTOR WITHOUT BANKS

TOTAL ASSETS



Equity Bank 8,951.1 non relevant 11,533.0 non relevant 11,622.5 non relevantJamii Bora Bank na non relevant 110.8 non relevant 339.9 non relevantK-REP Bank 5,986.5 non relevant 7,265.9 non relevant 7,556.1 non relevantPostbank 738.3 non relevant 886.2 non relevant 972.4 non relevantTotal 15,676 19,796 20,491


Century DTM na na na na 26.0 0.1%Faulu DTM 2,677.3 17.9% 3,308.5 20.1% 5,052.4 24.6%KWFT DTM 12,277.4 82.1% 11,456.6 69.7% 13,168.9 64.1%Rafiki DTM na na 105.6 0.6% 520.2 2.5%REMU DTM na na 42.4 0.3% 88.9 0.4%SMEP DTM na na 1,532.1 9.3% 1,573.2 7.7%SUMAC DTM na na na na 103.5 0.5%Total 14,954.7 100.0% 16,445.2 100.0% 20,533.0 100.0%


AAR Credit Services 163.8 2.8% 373.4 6.0% 447.8 5.5%Bimas 259.1 4.4% 402.0 6.5% 401.0 4.9%Century na na 1.5 0.0% na naECLOF Kenya 376.0 6.5% 448.3 7.2% 470.4 5.8%Greenland Fedha 232.4 4.0% 530.7 8.5% 1,256.1 15.5%Jitegemea Credit Scheme 207.3 3.6% 413.6 6.7% 398.8 4.9%Juhudi Kil imo 105.3 1.8% 163.8 2.6% 355.5 4.4%Kadet 511.1 8.8% 375.6 6.0% 427.8 5.3%KEEF 33.8 0.6% 28.6 0.5% 72.5 0.9%MicroAfrica 247.1 4.2% 442.3 7.1% 751.4 9.3%Milango Financial Services 125.1 2.1% 142.7 2.3% 111.8 1.4%Musoni 73.1 1.3% 79.0 1.3% 161.4 2.0%Opportunity Kenya 318.0 5.5% 413.9 6.7% 439.8 5.4%PAWDEP 695.0 11.9% 663.4 10.7% 696.9 8.6%Platinum Credit 762.9 13.1% 1,033.8 16.7% 1,391.3 17.2%REMU 16.8 0.3% na na na naRupia Ltd 16.9 0.3% 18.7 0.3% 26.1 0.3%Samchi Credit na na na na 15.3 0.2%SISDO 240.2 4.1% 295.0 4.8% 304.5 3.8%SMEP 1,260.2 21.6% na na na naSpringboard Capital Ltd na na 25.7 0.4% 54.9 0.7%SUMAC Credit 66.5 1.1% 103.3 1.7% na naTAIFA Option Microfinance 9.2 0.2% 26.5 0.4% 32.3 0.4%U & I na na 20.5 0.3% 24.8 0.3%YEHU 104.6 1.8% 206.2 3.3% 269.4 3.3%Total 5,824.5 100.0% 6,208.3 100.0% 8,109.9 100.0%

Banks

DTMs

Credit only MFIs

GROSS LOAN PORTFOLIO


2010 2010 2011 2011 2012 2012

Amount (KES mln) % Amount (KES mln) % Amount (KES mln) %AAR Credit Services 163.8 0.8% 373.4 1.6% 447.8 1.6%Bimas 259.1 1.2% 402.0 1.8% 401.0 1.4%Century DTM na na 1.5 0.0% 26.0 0.1%ECLOF Kenya 376.0 1.8% 448.3 2.0% 470.4 1.6%Faulu Kenya (DTM) 2,677.3 12.9% 3,308.5 14.6% 5,052.4 17.6%Greenland Fedha 232.4 1.1% 530.7 2.3% 1,256.1 4.4%Jitegemea Credit Scheme 207.3 1.0% 413.6 1.8% 398.8 1.4%Juhudi Kil imo 105.3 0.5% 163.8 0.7% 355.5 1.2%Kadet 511.1 2.5% 375.6 1.7% 427.8 1.5%KEEF 33.8 0.2% 28.6 0.1% 72.5 0.3%KWFT (DTM) 12,277.4 59.1% 11,456.6 50.6% 13,168.9 46.0%MicroAfrica 247.1 1.2% 442.3 2.0% 751.4 2.6%Milango 125.1 0.6% 142.7 0.6% 111.8 0.4%Musoni 73.1 0.4% 79.0 0.3% 161.4 0.6%Opportunity Kenya 318.0 1.5% 413.9 1.8% 439.8 1.5%PAWDEP 695.0 3.3% 663.4 2.9% 696.9 2.4%Platinum Credit 762.9 3.7% 1,033.8 4.6% 1,391.3 4.9%Rafiki DTM na na 105.6 0.5% 520.2 1.8%REMU DTM 16.8 0.1% 42.4 0.2% 88.9 0.3%Rupia Ltd 16.9 0.1% 18.7 0.1% 26.1 0.1%Samchi Credit na na na na 15.3 0.1%SISDO 240.2 1.2% 295.0 1.3% 304.5 1.1%SMEP DTM 1,260.2 6.1% 1,532.1 6.8% 1,573.2 5.5%Springboard Capital na na 25.7 0.1% 54.9 0.2%SUMAC DTM 66.5 0.3% 103.3 0.5% 103.5 0.4%TAIFA Option Microfinance 9.2 0.0% 26.5 0.1% 32.3 0.1%U & I na na 20.5 0.1% 24.8 0.1%YEHU 104.6 0.5% 206.2 0.9% 269.4 0.9%Total 20,779.1 100.0% 22,653.6 100.0% 28,642.9 100.0%


GROSS LOAN PORTFOLIO



Equity Bank 28,307.0 86.0% 35,047.0 86.6% 42,671.0 86.9%Jamii Bora Bank 1,023.5 3.1% 1,527.0 3.8% 2,093.4 4.3%K-REP Bank 1,157.5 3.5% 1,331.0 3.3% 1,527.2 3.1%Postbank 2,429.0 7.4% 2,573.4 6.4% 2,797.7 5.7%Total 32,917.0 100.0% 40,478.4 100.0% 49,089.3 100.0%


Century DTM na na na na 74.3 1.85%Faulu DTM 529.7 24.6% 556.3 18.7% 614.6 15.31%KWFT DTM 1,622.3 75.4% 1,924.8 64.8% 2,303.1 57.38%Rafiki DTM na na 134.6 4.5% 139.6 3.48%REMU DTM na na 99.6 3.4% 102.8 2.56%SMEP DTM na na 256.7 8.6% 619.8 15.44%SUMAC DTM na na na na 159.6 3.98%Total 2,152.0 100.0% 2,972.0 100.0% 4,013.8 100.0%


AAR Credit Services 23.7 1.1% 24.5 1.1% 24.9 1.1%Bimas 196.4 9.0% 222.3 9.7% 253.6 10.7%Century na na 85.9 3.8% na naECLOF Kenya 204.8 9.4% 175.1 7.7% 188.0 7.9%Greenland Fedha 160.2 7.4% 166.8 7.3% 185.0 7.8%Jitegemea Credit Scheme 30.1 1.4% 39.6 1.7% 59.0 2.5%Juhudi Kil imo 22.7 1.0% 5.4 0.2% 4.0 0.2%Kadet 189.8 8.7% 154.1 6.7% 153.7 6.5%KEEF 50.8 2.3% 55.3 2.4% 71.7 3.0%MicroAfrica 357.2 16.4% 352.4 15.4% 329.4 13.9%Milango Financial Services 28.5 1.3% 37.8 1.7% 23.2 1.0%Musoni (7.5) -0.3% (14.3) -0.6% (55.3) -2.3%Opportunity Kenya (36.4) -1.7% 129.2 5.6% 118.0 5.0%PAWDEP 61.0 2.8% 63.5 2.8% 64.5 2.7%Platinum Credit 177.2 8.1% 340.0 14.9% 492.4 20.8%REMU 93.5 4.3% na na na naRupia Ltd 0.1 0.0% 1.3 0.1% 1.9 0.1%Samchi Credit na na na na 16.3 0.7%SISDO 145.8 6.7% 158.9 6.9% 183.7 7.8%SMEP 294.1 13.5% na na na naSpringboard Capital Ltd na na 23.0 1.0% 34.2 1.4%SUMAC Credit 81.4 3.7% 99.4 4.3% na naTAIFA Option Microfinance 19.1 0.9% 34.4 1.5% 66.5 2.8%U & I na na 43.2 1.9% 43.7 1.8%YEHU 83.5 3.8% 89.3 3.9% 107.0 4.5%Total 2,175.9 100.0% 2,287.4 100.0% 2,365.6 100.0%

DTMs

Credit only MFIs

EQUITY

Banks


2010 2010 2011 2011 2012 2012

Amount (KES mln) % Amount (KES mln) % Amount (KES mln) %AAR Credit Services 23.7 0.5% 24.5 0.5% 24.9 0.4%Bimas 196.4 4.5% 222.3 4.2% 253.6 4.0%Century DTM na na 85.9 1.6% 74.3 1.2%ECLOF Kenya 204.8 4.7% 175.1 3.3% 188.0 2.9%Faulu Kenya (DTM) 529.7 12.2% 556.3 10.6% 614.6 9.6%Greenland Fedha 160.2 3.7% 166.8 3.2% 185.0 2.9%Jitegemea Credit Scheme 30.1 0.7% 39.6 0.8% 59.0 0.9%Juhudi Kil imo 22.7 0.5% 5.4 0.1% 4.0 0.1%Kadet 189.8 4.4% 154.1 2.9% 153.7 2.4%KEEF 50.8 1.2% 55.3 1.1% 71.7 1.1%KWFT (DTM) 1,622.3 37.5% 1,924.8 36.6% 2,303.1 36.1%MicroAfrica 357.2 8.3% 352.4 6.7% 329.4 5.2%Milango 28.5 0.7% 37.8 0.7% 23.2 0.4%Musoni (7.5) -0.2% (14.3) -0.3% (55.3) -0.9%Opportunity Kenya (36.4) -0.8% 129.2 2.5% 118.0 1.8%PAWDEP 61.0 1.4% 63.5 1.2% 64.5 1.0%Platinum Credit 177.2 4.1% 340.0 6.5% 492.4 7.7%Rafiki DTM na na 134.6 2.6% 139.6 2.2%REMU DTM 93.5 2.2% 99.6 1.9% 102.8 1.6%Rupia Ltd 0.1 0.0% 1.3 0.0% 1.9 0.0%Samchi Credit na na na na 16.3 0.3%SISDO 145.8 3.4% 158.9 3.0% 183.7 2.9%SMEP DTM 294.1 6.8% 256.7 4.9% 619.8 9.7%Springboard Capital na na 23.0 0.4% 34.2 0.5%SUMAC DTM 81.4 1.9% 99.4 1.9% 159.6 2.5%TAIFA Option Microfinance 19.1 0.4% 34.4 0.7% 66.5 1.0%U & I na na 43.2 0.8% 43.7 0.7%YEHU 83.5 1.9% 89.3 1.7% 107.0 1.7%Total 4,328.0 100.0% 5,259.4 100.0% 6,379.4 100.0%


EQUITY



Equity Bank 105,583.0 81.3% 141,864.0 82.6% 173,158.0 84.3%Jamii Bora Bank 703.1 0.5% 543.0 0.3% 1,386.2 0.7%K-REP Bank 6,512.5 5.0% 7,987.7 4.7% 8,018.9 3.9%Postbank 17,031.6 13.1% 21,291.3 12.4% 22,879.8 11.1%Total 129,830.3 100.0% 171,686.0 100.0% 205,442.9 100.0%


Century DTM na na na na 19.3 0.1%Faulu DTM 3,860.4 18.2% 4,584.3 21.1% 7,023.1 24.6%KWFT DTM 17,336.1 81.8% 15,111.0 69.4% 18,081.4 63.2%Rafiki DTM na na 306.0 1.4% 1,698.6 5.9%REMU DTM na na 24.8 0.1% 78.9 0.3%SMEP DTM na na 1,741.5 8.0% 1,669.7 5.8%SUMAC DTM na na na na 22.0 0.1%Total 21,196.4 100.0% 21,767.6 100.0% 28,592.8 100.0%


AAR Credit Services 281.9 4.4% 522.5 7.9% 606.9 6.8%Bimas 206.4 3.2% 315.7 4.8% 350.4 3.9%Century na na 2.8 0.0% na naECLOF Kenya 523.5 8.1% 613.9 9.3% 636.3 7.2%Greenland Fedha 78.5 1.2% 373.1 5.6% 1,188.5 13.4%Jitegemea Credit Scheme 179.2 2.8% 428.0 6.5% 474.5 5.3%Juhudi Kil imo 151.8 2.3% 259.9 3.9% 465.0 5.2%Kadet 681.9 10.5% 640.2 9.7% 708.2 8.0%KEEF 9.2 0.1% 6.4 0.1% 28.2 0.3%MicroAfrica 317.3 4.9% 552.6 8.4% 952.2 10.7%Milango Financial Services 99.6 1.5% 136.9 2.1% 141.8 1.6%Musoni 78.5 1.2% 103.4 1.6% 227.4 2.6%Opportunity Kenya 437.3 6.8% 474.9 7.2% 599.0 6.8%PAWDEP 697.5 10.8% 646.3 9.8% 672.6 7.6%Platinum Credit 710.8 11.0% 862.4 13.1% 1,028.1 11.6%REMU 7.9 0.1% na na na naRupia Ltd 20.8 0.3% 23.0 0.3% 27.5 0.3%Samchi Credit na na na na 1.1 0.0%SISDO 268.8 4.2% 308.5 4.7% 343.1 3.9%SMEP 1,565.5 24.2% na na na naSpringboard Capital Ltd na na 6.7 0.1% 22.7 0.3%SUMAC Credit 4.0 0.1% 28.3 0.4% na naTAIFA Option Microfinance 2.8 0.0% 0.9 0.0% 0.7 0.0%U & I na na 8.4 0.1% 10.8 0.1%YEHU 143.8 2.2% 291.1 4.4% 388.3 4.4%Total 6,467.0 100.0% 6,605.9 100.0% 8,873.1 100.0%

Banks

DTMs

Credit only MFIs

TOTAL LIABILITIES


2010 2010 2011 2011 2012 2012

Amount (KES mln) % Amount (KES mln) % Amount (KES mln) %AAR Credit Services 281.9 1.0% 522.5 1.8% 606.9 1.6%Bimas 206.4 0.7% 315.7 1.1% 350.4 0.9%Century DTM na na 2.8 0.0% 19.3 0.1%ECLOF Kenya 523.5 1.9% 613.9 2.2% 636.3 1.7%Faulu Kenya (DTM) 3,860.4 14.0% 4,584.3 16.2% 7,023.1 18.7%Greenland Fedha 78.5 0.3% 373.1 1.3% 1,188.5 3.2%Jitegemea Credit Scheme 179.2 0.6% 428.0 1.5% 474.5 1.3%Juhudi Kil imo 151.8 0.5% 259.9 0.9% 465.0 1.2%Kadet 681.9 2.5% 640.2 2.3% 708.2 1.9%KEEF 9.2 0.0% 6.4 0.0% 28.2 0.1%KWFT (DTM) 17,336.1 62.7% 15,111.0 53.3% 18,081.4 48.3%MicroAfrica 317.3 1.1% 552.6 1.9% 952.2 2.5%Milango 99.6 0.4% 136.9 0.5% 141.8 0.4%Musoni 78.5 0.3% 103.4 0.4% 227.4 0.6%Opportunity Kenya 437.3 1.6% 474.9 1.7% 599.0 1.6%PAWDEP 697.5 2.5% 646.3 2.3% 672.6 1.8%Platinum Credit 710.8 2.6% 862.4 3.0% 1,028.1 2.7%Rafiki DTM na na 306.0 1.1% 1,698.6 4.5%REMU DTM 7.9 0.0% 24.8 0.1% 78.9 0.2%Rupia Ltd 20.8 0.1% 23.0 0.1% 27.5 0.1%Samchi Credit na na na na 1.1 0.0%SISDO 268.8 1.0% 308.5 1.1% 343.1 0.9%SMEP DTM 1,565.5 5.7% 1,741.5 6.1% 1,669.7 4.5%Springboard Capital na na 6.7 0.0% 22.7 0.1%SUMAC DTM 4.0 0.0% 28.3 0.1% 22.0 0.1%TAIFA Option Microfinance 2.8 0.0% 0.9 0.0% 0.7 0.0%U & I na na 8.4 0.0% 10.8 0.0%YEHU 143.8 0.5% 291.1 1.0% 388.3 1.0%Total 27,663.4 100.0% 28,373.6 100.0% 37,466.0 100.0%


TOTAL LIABILITIES


Equity Bank 95,204.0 83.1% 125,492.0 83.6% 142,386.0 83.7%Jamii Bora Bank 532.4 0.5% 392.7 0.3% 1,213.1 0.7%K-REP Bank 5,454.5 4.8% 6,446.0 4.3% 6,649.6 3.9%Postbank 13,415.1 11.7% 17,746.2 11.8% 19,909.3 11.7%Total 114,605.9 100.0% 150,076.9 100.0% 170,158.1 100.0%


Century DTM na na na na 13.5 0.1%Faulu DTM 1,854.6 23.1% 1,965.0 19.7% 4,464.5 29.0%KWFT DTM 6,162.8 76.9% 7,076.9 70.9% 9,354.0 60.7%Rafiki DTM na na 102.5 1.0% 485.8 3.2%REMU DTM na na 20.1 0.2% 68.0 0.4%SMEP DTM na na 813.9 8.2% 1,014.0 6.6%SUMAC DTM na na na na 0.6 0.0%Total 8,017.4 100.0% 9,978.4 100.0% 15,400.3 100.0%

Banks

DTMs

CLIENTS DEPOSITS


DDIIRREECCTTOORRYY 22001133 AANNNNUUAALL RREEPPOORRTT OONN TTHHEE MMIICCRROOFFIINNAANNCCEE SSEECCTTOORR IINN KKEENNYYAA || SSEECCOONNDD EEDDIITTIIOONN The following directory pages were endorsed by the participants. The analysis provided in the “overview” section is in some cases limited due to the wish of certain participants. The provinces are circled on the map if the institution is operational in that province. The number of branches with the MIS interconnected to the Head Office is noted.


31

AAR CREDIT SERVICES LTD

Mission:

We provide beneficial financial services that enrich the lives of our customers

Vision: To be the most admired financial services

company in the region

Background AAR Credit Services Ltd was established in May 1999 as a division of AAR Health services and then incorporated in May 2000 as a separate limited liability company, to serve as a vehicle for providing credit for medical insurance premium financing and other short term financial needs which contribute to alleviating poverty in the country. The company is owned by AAR Holdings Limited, Loita Capital Partners International, the company’s Managing Director John K. Kariuki, and Margaret Njoroge, with participations of 40.1%, 35.4%, 21.5% and 3.0% respectively. As of now, AAR Credit Services has a branchless banking business model and the majority of its customer loans are originated by its strategic business partners. The Company’s main products are: 1) AAR and insurance premium financing (IPF); 2) Asset financing targeting individuals and small businesses; 3) Short-term loans to employees of established companies and insurance agents; 4) Loans to Postbank savers - AAR Credit has invested in an IT platform that enables Postbank customers to apply for loans electronically at any of the 100 Postbank branches countrywide. AAR Credit Services also operates in Uganda where it has a customer base of over 6,000 civil servants and a countrywide geographical presence.

Overview AAR Credit Services runs its operations from its office in Nairobi. AAR Credit Services has experienced strong portfolio growth over the past three years. As of Dec. 2012, it had a KES 540mln loan book which is forecasted to exceed KES 1bn by Dec. 2013. PAR 30 increased from 5.1% in 2011 to 8.6% in 2012, as a result of a rise in the cost of living which negatively impacted on loan repayments. The business had lower spreads which affected profitability on account of higher cost of funds as a result of the unfavourable macroeconomic environment in the first 3 quarters of 2012. Operational self sufficiency remains above 100%. The debt to equity ratio increased from 21.3 in 2011 to 24.3 in 2012. To lower its debt leverage and cost of funds, the Company is in discussion with a number of private equity investors with a view to raising an additional KES 300mln in equity capital by the end of 2013.

Charter type NBFI (for profit)Year of starting operations 2000No. Branches (Dec 12) 1 (Head Office)Staff (Dec 12) 13MIS FinMFI

Contact details-

John Kariuki - MD Methodist Ministries Centre, 1st FloorOloitokitok Road, NairobiTel: +254(0)722425040/(0)736425040Email: [email protected]; [email protected]: www.aarcredit.co.ke/

No. of branches interconnected

Profile Dec-10 Dec-11 Dec-12Active Borrowers 2,815 11,767 14,781Gross Outstanding Portfolio (USD) 2,028,932 4,389,278 5,206,656 Total Assets (USD) 3,784,405 6,430,626 7,346,427 PAR 30 5.3% 5.1% 8.6%ROE 44.7% 16.5% 9.8%ROA 3.0% 0.9% 0.4%Oper. Self-sufficiency (OSS) 114.8% 105.7% 101.0%Staff productivity (borrow.) N/A N/A 1137LO productivity (borrow.) N/A N/A 3695Portfolio yield 49.5% 41.8% 45.5%Operating Expense ratio 31.8% 23.5% 18.0%Oper. Expense ratio (over assets) 19.3% 14.8% 12.5%Funding Expense ratio 14.1% 17.6% 28.2%Provision Expense ratio 1.1% 0.9% 4.0%Debt/Equity Ratio 11.9 21.3 24.3

58%

15%

4%

23%

Equity and Liabilities structure (Dec 2012)

Domestic Debt

International Debt

Equity

Other


BIMAS

Mission: To offer innovative financial and non financial services to the rural economically productive

poor for sustainable wealth creation

Vision: To be the leading micro finance institution in

Kenya.

Background Bimas began as a Micro-enterprise development programme under the auspices of Plan Embu and became operational in the year 1997. Bimas is based in Embu town, Eastern province and is positioned to provide financial services to the rural population mainly employing the group based lending methodology. Their main credit product is a business loan targeting small entrepreneurs.

Overview The clients base has followed a steady growth over the last three years while the outstanding loan portfolio remained quite stable in 2012, indicating a decrease in the average outstanding loan amount. Portfolio quality deteriorated and the PAR 30 was at 7.5% as of December 2012. BIMAS’ sustainability remains very sound as the level of profitability increases over the past three years. Portfolio yield increased significantly in 2011. The level of capitalization is strong, leaving a large margin for further debt leverage.

Charter type NGOYear of starting operations 1997No. Branches (Dec 12) 19Staff (Dec 12) 126Loan officers (Dec 12) 88MIS Bankers Realm

Contact details2Patrick Gathondu - Executive DirectorBIMAS Comlex - EmbuTel: 08-31645/+ 254 724574552Email: [email protected]; [email protected]: http://www.bimaskenya.com/


Profile Dec-10 Dec-11 Dec-12Active Borrowers 7,019 9,353 10,118Gross Outstanding Portfolio (USD) 3,208,418 4,725,886 4,662,777 Total Assets (USD) 4,988,079 6,323,680 7,023,717 PAR 30 5.2% 6.1% 7.5%ROE 6.8% 7.3% 9.5%ROA 3.1% 3.2% 4.0%Oper. Self-sufficiency (OSS) 124.5% 123.1% 125.5%Staff productivity (borrow.) N/A N/A 80LO productivity (borrow.) N/A N/A 115Portfolio Yield 30.3% 36.3% 37.5%Operating Expense ratio 30.0% 27.1% 27.8%Oper. Expense ratio (over assets) 16.9% 19.1% 19.6%Funding Expense ratio 0.4% 2.7% 5.9%Provision Expense ratio -3.2% 1.7% 0.6%Debt/Equity Ratio 1.1 1.4 1.4

12%

8%

33%

42%

5%

Equity and Liabilities Structure (Dec 2012)

Domestic Debt

International Debt

Compulsory Savings

Equity

Other

B IM A SY

ou

r F

in

a n c ia l S e r v ic e s Pa

r t ne

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CENTURY DTM LTD

Mission:

Vision:

Background Century Deposit Taking Microfinance Limited started its operation in the year 2012. It is an institution that specializes on providing financial services to Micro, Small and Medium Businesses sector at large, driven by the need to serve the agricultural sector specifically using the value chain financing approach. Century DTM’s main credit product so far is a business group loan.

Overview Century DTM Ltd was licensed by the CBK as a DTM in September 2012. As of December 2012, the institution was serving 582 borrowers with a loan portfolio amounting to USD 302,503. As with most new structures, starting-up costs being high, operational self sufficiency has not been achieved yet.

Charter type DTMYear of starting operations 2012No. Branches (Dec 12) 1Staff (Dec 12) 18Loan officers (Dec 12) 7MIS Bankers Realm

-

Contact details Pauline Githugu - CEONew Pumwani Rd, GikombaTel:+254(0)202664282/+254(0)756305138Email: [email protected];[email protected]: http://www.century.co.ke/

No. of branches interconnected (Wide Area Network)

Profile Dec-12Active Borrowers 582Gross Outstanding Portfolio (USD) 302,503Total Assets (USD) 1,088,257Total Savings (USD) 157,083PAR 30 14.5%ROE -23.9%ROA -21.0%Oper. Self-sufficiency (OSS) 34.1%Staff productivity (borrow.) 32.3LO productivity (borrow.) 83.1Portfolio Yield 41.4%Operating Expense ratio 258.4%Oper. Expense ratio (over assets) 39.0%Funding Expense ratio 9.2%Provision Expense ratio 23.0%Debt/Equity Ratio 0.26

1%5%

9%

80%

5%


Domestic Debt

Compulsory Savings

Demand Deposits

Equity

Other


ECLOF-KENYA Mission:

Vision:

Background ECLOF Kenya was set up in 1994 and is an affiliate of the ECLOF International Network. ECLOF Kenya provides both financial and non-financial services to micro, small, and medium entrepreneurs predominantly under the group lending with recent introduction of individual lending.

Overview ECLOF-Kenya achieved a limited growth in 2012, in parallel with the deepening of the outreach. The PAR 30 remained constant in 2012 in relation to year end 2011, at a level of 10.9%. ECLOF-Kenya sustained a sound operational self sufficiency over the period of analysis, with a rebound in profitability in 2012, while both operating expenses and portfolio yield significantly increased. The debt leverage level also remained steady.

*ROE, ROA and OSS are calculated including the grant income as this income was used to fund expenses that wouldn’t have been incurred otherwise.

Charter type NBFI (for profit)Year of starting operations 1994No. Branches (Dec 12) 16Staff (Dec 12) 168Loan officers (Dec 12) 85MIS Bankers Realm

Contact details Mary Munyiri - CEORoyal Offices, 2nd Floor, Mogotio Road Westlands, NairobiTel: +254 20 721344699, +254 20 707661077Email: [email protected]: www.eclof-kenya.org

-No. of branches interconnected (Wide Area Network)

Profile Dec-10 Dec-11 Dec-12Active Borrowers 17,099 18,712 17,898Gross Outstanding Portfolio (USD) 4,656,779 5,269,548 5,469,728Total Assets (USD) 9,020,177 9,275,149 9,585,510PAR 30 14.0% 10.9% 10.9%ROE* 6.4% 2.5% 8.1%ROA* 1.8% 0.6% 1.8%Oper. Self-sufficiency (OSS)* 108.1% 102.8% 106.8%Staff productivity (borrow.) N/A N/A 107LO productivity (borrow.) N/A N/A 211Portfolio Yield 36.0% 35.3% 41.7%Operating Expense ratio 31.4% 32.1% 37.1%Oper. Expense ratio (over assets) 16.8% 17.4% 21.2%Funding Expense ratio 6.5% 6.6% 8.5%Provision Expense ratio 4.0% 2.6% 1.8%Debt/Equity Ratio 2.6 3.5 3.4

29%

6%

38%

23%

4%


Domestic Debt

International Debt

Compulsory Savings

Equity

Other


EQUITY BANK

Mission: We offer inclusive, customer focused

financial services that socially and economically empower our clients and

other stakeholders

Vision: To be the champion of the socio-economic

prosperity of the people of Africa.

Background Equity Bank was founded in 1984 and began operations as Equity Building Society before successively transforming into a rapidly growing MFI and later into a commercial bank. Equity Bank caters to a diversified target client profile with a wide array of products including financial and non-financial services.

Overview The growth of Equity Bank’s loan portfolio registered at 38% in 2011 and 15% in 2012; while the microfinance portfolio remained stable in 2012. Growth of the loan book is especially due to strategic growth of SME lending. Focus on agency and mobile banking worked to enhance service delivery channels resulting in deepened outreach due to the convenience, accessibility and affordability of the Banks' services. Portfolio quality marginally deteriorated in 2012, especially in regards to development and working capital loans. This was occasioned by the prevailing high interest environment then and the uncertainity arising from the impending elections. The PAR 30 of the microfinance portfolio is higher than the aggregate PAR 30 over the three years. Profitability is high but slightly declined in 2012, although portfolio yield increased. Efficiency level is good and remains stable.

Charter type BankYear of starting operations 1984No. Branches (Dec 12) 149Staff (Dec 12) 6,030Loan officers (Dec 12) 1,614MIS -

Contact details

149

Dr James Mwangi - CEO and MDEquity Centre, Hospital Hill Road, Upper Hill, NairobiTel.: +254 (0) 20 2262000Email: [email protected]: http://www.equitybank.co.ke/


Profile Dec-10 Dec-11 Dec-12

Active Borrowers (Whole portfolio) 619,561 744,544 781,604

Active Borrowers (Microfinance) 113,805 122,143 120,935Whole Gross Loan Portfolio (USD) 924,398,793 1,278,657,922 1,471,300,267

Microfinance Gross Loan Portfolio (USD)

110,847,466 135,574,265 135,144,007

Total Assets (USD) 1,658,040,570 2,079,639,724 2,509,616,190Total Savings (USD) 1,178,968,515 1,475,194,579 1,655,635,762PAR 30 (Whole portfolio) 6.2% 3.5% 6.4%PAR 30 (Microfinance) 13.6% 7.4% 10.6%ROE 29.3% 30.9% 28.3%ROA 6.6% 6.3% 5.6%Oper. Self-sufficiency (OSS) 174.0% 174.8% 172.3%Staff productivity (borrow.) N/A N/A 130LO productivity (borrow.) N/A N/A 484Portfolio Yield (Whole portfolio) 17.6% 19.3% 23.1%Operating Expense ratio 13.6% 12.9% 12.2%Oper. Expense ratio (over assets) 8.1% 7.6% 7.3%Funding Expense ratio 2.7% 3.1% 5.4%Provision Expense ratio 2.3% 1.7% 1.2%Debt/Equity Ratio 3.7 4.0 4.1

0% 12%

20%

53%

13%

2%


Domestic Debt

International Debt

Equity

Demand Deposits

Term Deposits

Other


FAULU KENYA DTM LIMITED

Mission:

Vision: Giving Kenyans Hope and a future

Background Faulu Kenya began as a programme of Food for the Hungry International (FHI) and started its microfinance operations in 1992. In May 2009, Faulu Kenya became the first microfinance institution to be licensed as a deposit taking institution by CBK. Faulu Kenya offers both savings and credit services targeting the low income people in both rural and urban areas. Faulu Kenya’s main credit product is business group loan.

Overview In 2012, Faulu Kenya DTM sustained a strong growth in both loan portfolio and savings collected, thanks to enhanced marketing campaigns, continous improvement and development of new products in response to client needs. The number of borrowers however decreased, contributing to an increased average outstanding loan balance. Portfolio quality significantly improved in 2011 and remained steady in 2012. Faulu Kenya DTM reached the operational self-sufficiency in 2011 sustained a significant profitability growth in 2012 thanks to a better efficiency through economies of scale. The debt leverage was on an upward trend and the debt over equity ratio reached 11.4 in 2012.

Charter type DTMYear of starting operations 1992No. Branches (Dec 12) 29Staff (Dec 12) 697Loan officers (Dec 12) 320MIS T-24

Contact details

na

John Mwara Kibochi - Managing DirectorNgong Lane, Off Ngong Road Tel :+254 20 3877290 /0789797691Email:[email protected]: www.faulukenya.com


Profile Dec-10 Dec-11 Dec-12Active Borrowers 96,238 82,328 79,221Gross Outstanding Portfolio (USD) 33,154,112 38,892,523 58,748,756 Total Assets (USD) 54,364,994 60,428,950 88,809,360 Total Savings (USD) 22,966,679 23,099,164 51,912,319 PAR 30 10.8% 5.2% 5.2%ROE -24.5% 2.0% 7.1%ROA -3.0% 0.2% 0.7%Oper. Self-sufficiency (OSS) 87.7% 100.1% 105.1%Staff productivity (borrow.) N/A N/A 114LO productivity (borrow.) N/A N/A 248Portfolio Yield 37.2% 39.0% 36.4%Operating Expense ratio 38.4% 32.9% 27.6%Oper. Expense ratio (over assets) 24.8% 20.6% 18.0%Funding Expense ratio 5.7% 7.9% 9.1%Provision Expense ratio 2.8% 1.4% 0.9%Debt/Equity Ratio 7.3 8.2 11.4

19%

10%

8%

32%

26%

5%


Domestic Debt

International Debt

Equity

Demand Deposits

Term Deposits

Other


JUHUDI KILIMO

Mission: To provide market driven, wealth-creating

financial services that empower smallholder farmers and rural enterprises to create sustainable agri-businesses and

improve their livelihoods.

Vision: To reach 100,000 farmers by 2015 with

superior financial services for agri-business.

Background Juhudi Kilimo began as an initiative of K-Rep Development Agency and later became an independent for-profit company in April 2009. Juhudi Kilimo provides asset financing and technical assistance to small holder farmers and small-to-medium agro-businesses with an outreach in the rural areas.

Overview Juhudi Kilimo has maintained a strong growth path over the last 3 years, and especially in 2012 thanks to new funding from additional senior lenders. The portfolio quality remained quite good and stable over the period of analysis. Profitability may not have been achieved but there has been a steady improvement from year to year, as well as efficiency. Burdened by accumulated losses, equity has been decreasing while the debt level has been increasing ; leading to a very high Debt/Equity ratio.

Charter type NBFI (for profit)Year of starting operations 2009No. Branches (Dec 12) 8Staff (Dec 12) 67Loan officers (Dec 12) 32MIS Microsoft NAV Dynamics

Contact details Nat Robinson - CEO2nd Floor, Priory Place, Argwings Kodhek Road, NairobiTel: + 254 (0)713 793 554 Email: [email protected]: http://www.juhudikilimo.com/

8No. of branches interconnected (Wide Area Network)

Profile Dec-10 Dec-11 Dec-12Active Borrowers 3,471 4,795 9,493Gross Outstanding Portfolio (USD) 1,303,686 1,925,059 4,133,747Total Assets (USD) 2,161,492 3,118,446 5,453,044PAR 30 2.5% 4.1% 3.2%ROE -91.5% -124.7% -333.2%ROA -11.9% -8.0% -4.3%Oper. Self-sufficiency (OSS) 53.3% 63.4% 81.3%Staff productivity (borrow.) N/A N/A 142LO productivity (borrow.) N/A N/A 297Portfolio Yield 25.3% 30.4% 28.9%Operating Expense ratio 44.6% 39.8% 30.1%Oper. Expense ratio (over assets) 26.9% 24.4% 21.3%Funding Expense ratio 4.3% 7.9% 10.4%Provision Expense ratio 3.6% 1.7% 2.1%Debt/Equity Ratio 7 48 116

65%

27%

1%7%


International Debt

Compulsory Savings

Equity

Other


GREENLAND FEDHA LIMITED

Mission: To provide high quality affordable financial

services for the low income and medium households in Kenya through increased

access to lending and savings services to enable a positive impact on customer's

economic, social and natural environment.

Vision: To be the preferred provider of high quality and affordable financial services in Kenya.

Background Greenland Fedha Ltd is a Microfinance Subsidiary of Kenya Tea Development Agency (KTDA) Holdings incorporated in August 2009. Greenland Fedha provides credit services mainly employing the individual lending methodology and also serves to create linkages through financial support in the tea industry value chain. The main credit products are Agricultural and Education loans which targets individual tea growers.

Overview Greenland Fedha experienced a very positive growth in its loan book and client base since commencing it’s operations, thanks to vigorous marketing through additional loan officers and the development of new loan products. Portfolio quality is very sound. Profitability follows an upward trend thanks to the increase in portfolio yield and a better efficiency due to economies of scale. Operational self sufficiency is achieved in 2012. The debt leverage increases leading to a higher funding expense ratio.

*The financial statements as of 2010 cover a 10 months period

Charter type NBFI (for profit)Year of starting operations 2009No. Branches (Dec 12) 4Staff (Dec 12) 63Loan officers (Dec 12) 44MIS Microsoft Dynamics Navision 2009

Contact details

na

Anne Gathuku - General ManagerKTDA Farmers Building, Moi Avenue, NairobiTel: +254 203227228Email: [email protected] Website: http://www.ktdateas.com


84%

13%3%

Equity and Liabilities Structure (June 2012)

Domestic Debt

Equity

Other


JITEGEMEA CREDIT SCHEME

Mission: To empower our clients by availing financial

and social programmes that will enable them to realize their potential.

Vision: To be a reputable financial institution in

Africa.

Background Jitegemea Credit Scheme (JCS) started in 1998 as a programme of the Presbyterian Church of East Africa (PCEA) and was registered as a separate company limited by guarantee in 2003. JCS provides financial services and trainings to clients through the Jitegemea Advisory Services wing and their core business is business group loans targeting micro and small entrepreneurs.

Overview Jitegemea Credit Scheme has experienced a strong growth in its client base over the period with expansion in geographic outreach while the loan book has slightly decreased, indicating a decrease in the average outstanding loan amount. Portfolio quality remains well-managed. Profitability has improved thanks to an increase of the financial investment income in 2012. OSS is achieved in all three years. The debt leverage is high, with a debt over equity ratio at 8 in 2012.

Charter type NBFI (Company limited by guarantee)Year of starting operations 1998No. Branches (Dec 12) 17Staff (Dec 12) 95Loan officers (Dec 12) 67MIS Bankers Realm

Contact details

4

Francis Kihiko - CEO2nd Floor, KCB Building, Jogoo RoadTel:+254(0)20 2365951/ (0)722207637Email: [email protected] Website: http://www.jitegemea.co.ke


Profile Dec-10 Dec-11 Dec-12Active Borrowers 9,096 12,812 18,103Gross Outstanding Portfolio (USD) 2,567,279 4,861,465 4,636,641Total Assets (USD) 2,591,500 5,496,771 6,202,724PAR 30 6.5% 2.6% 3.5%ROE 8.3% 22.8% 39.2%ROA 1.4% 2.3% 3.9%Oper. Self-sufficiency (OSS) 104.7% 108.3% 113.9%Staff productivity (borrow.) N/A N/A 191LO productivity (borrow.) N/A N/A 270Portfolio Yield 31.0% 32.9% 34.6%Operating Expense ratio 20.1% 20.1% 24.6%Oper. Expense ratio (over assets) 20.1% 18.4% 20.0%Funding Expense ratio 8.2% 9.3% 7.8%Provision Expense ratio 2.1% 1.5% 1.9%Debt/Equity Ratio 5.9 10.8 8.0

36%

6%37%

11%

10%


Domestic Debt

International Debt

Compulsory Savings

Equity

Other


JAMII BORA BANK

Mission: To leverage innovation and technology

to provide financial products and services that fit into and enhance lives

of people across Africa in order to achieve a customer base of 6 million

customers by the year 2018. Vision:

To develop the most innovative financial service delivery platform that

will transform lives across Africa.

Background Jamii Bora Trust was founded as a charitable trust in 1999 to provide microfinance solutions to low income earners. It later transitioned to Jamii Bora Kenya to act as a microfinance vehicle, and thereafter the acquisition by City Finance Bank in March 2010, it transformed into Jamii Bora Bank. The bank focuses on the bottom end market. The main credit product is individual based business loans which target stable micro enterprises.

Overview In 2012, Jamii Bora Bank experienced a very strong growth pattern in terms of loan book (+277% in KES) and clients deposits (+209% in KES). The microfinance portfolio accounts for 24.3% of the total portfolio. PAR 30 is still relatively high (+15.2% whole loan book) though with notable improvements. Operational Self Sufficiency was achieved in 2012 thanks to the strong growth that led to economies of scales. Efficiency indeed improved significantly in 2012 as revealed by the commendable decline in operating expenses over the period. However, the portfolio yield is yet to cover the total cost structure. Debt/Equity level remains very low and leaves additional room for further debt leverage.

Charter type BankYear of starting operations 1999No. Branches (Dec 12) 13Staff (Dec 12) 227Loan officers (Dec 12) 99MIS Bankers Realm

Contact details

13

Sam Kimani - CEOHead Office, Jamii Bora House, Koinange Street, NairobiTel : +254(0)202224238-9 /(0)722383813 Email: [email protected]: www.jamiiborabank.co.ke


Profile Dec-10 Dec-11 Dec-12Active Borrowers (Wole portfolio) N/A 13,695 12,108Active Borrowers (Microfinance) N/A 1,171 6,845Whole Gross Loan Portfolio (USD) 4,733,607 4,361,964 16,283,488Microfinance Gross Loan Portfolio (USD) N/A 2,161,617 3,952,665Total Assets (USD) 21,381,256 24,333,552 40,460,740Total Savings (USD) 6,592,857 4,615,914 14,105,962PAR 30 (Whole portfolio) N/A 44.8% 15.2%PAR 30 (Microfinance) N/A 31.0% 14.7%ROE -11.6% -3.0% 2.9%ROA -7.0% -2.0% 1.9%Oper. Self-sufficiency (OSS) 61.9% 82.0% 116.8%Staff productivity (borrow.) N/A N/A 45LO productivity (borrow.) N/A N/A 151Portfolio Yield (Whole portfolio) 50.5% 27.3% 23.9%Operating Expense ratio 76.7% 43.5% 29.1%Oper. Expense ratio (over assets) 20.2% 8.6% 9.3%Funding Expense ratio 3.2% 1.5% 3.0%Provision Expense ratio 12.0% 5.2% 3.5%Debt/Equity Ratio 0.7 0.4 0.7

3%

18%

17%60%

2%


Domestic Debt

Demand Deposits

Term Deposits

Equity

Other


KADET LIMITED

Mission:

Securing the child’s future through economic transformation.

Vision: Our Vision for every child, life in all its fullness; our prayer for every heart, the will to make it

so.

Background KADET was established by World Vision in 2000 providing credit services for small and micro entrepreneurs as well as to the marginalized community members located in the Integrated Program Areas (IPAs) of World Vision Kenya and has overall deepened rural outreach. The main credit product is a group business loan.

Overview KADET’s client base and loan book decreased significantly in 2011 as a result of a change of loan tracking system : the data migration led to a period of data reconciliation during which disbursements slowed down and clients exited. In 2012, the portfolio slightly increased as clients started regaining their confidence in Kadet. PAR dropped in 2012 as more efforts were focused on recovery after the data migration was successfully completed. Profitability was not achieved, although it improved in 2012. Efficiency was still low and the operating expense ratio sharply increased in 2012. Debt leverage increased but remained at an adequate level.

Charter type NBFIYear of starting operations 2001No. Branches (Dec 12) 11Staff (Dec 12) 168Loan officers (Dec 12) 83MIS na

Contact details

-

Peter Mugendi - CEO2nd Floor, Capitol Hill TowersTel: +254 (0)20 2731954Email: [email protected] Website: http://www.kadet.co.ke


Profile Sep-10 Sep-11 Sep-12Active Borrowers 18,384 14,439 14,117Gross Outstanding Portfolio (USD) 6,329,123 4,414,792 4,974,942Total Assets (USD) 10,794,043 9,337,789 10,021,570PAR 30 11.0% 11.2% 5.8%ROE -25.2% -43.0% -9.4%ROA -6.3% -8.9% -1.8%Oper. Self-sufficiency (OSS) 78.5% 69.9% 94.4%Staff productivity (borrow.) N/A N/A 84LO productivity (borrow.) N/A N/A 170Portfolio Yield 27.4% 26.8% 33.0%Operating Expense ratio 43.3% 46.6% 56.4%Oper. Expense ratio (over assets) 25.5% 24.8% 27.4%Funding Expense ratio 4.8% 3.8% 6.0%Provision Expense ratio 0.0% -0.5% 2.1%Debt/Equity Ratio 3.6 4.2 4.6

13%

35%36%

16%


Domestic Debt

International Debt

Compulsory Savings

Equity


KEEF KENYA

Mission: To promote sustainable economic growth in rural and urban areas through provision of

financial services and capacity building

Vision: To be a dynamic sustainable and viable

institution of the future where local communities have access to financial

services that empower them economically and socially

Background KEEF was established in 2004 as a non-profit organization operational in marginalized areas, targeting women and youth entrepreneurs managed under two distinct programs, namely the Women Entrepreneurship Empowerment Program (WEEP) and the Youth Enterprise Development Program. Their main credit product is a business group loan targeting micro and small entrepreneurs.

Overview A significant positive growth in the portfolio and client base is achieved due to increase in market share as the existing customers participate actively in obtaining new clients through referrals. Portfolio quality is good. Profitability is increasing and at a very high level thanks to a high portfolio yield (significant income from service commissions) and an improved efficiency. The level of capitalization is very high.

Charter type TRUSTYear of starting operations 2007No. Branches (Dec 12) naStaff (Dec 12) 25Loan officers (Dec 12) 18MIS MIFOS

Contact details

na

Stephen M. NjengaMapa house 3rd floorTel: 020 3535617/ 0722 440419Email: [email protected]@keefkenya.orgWebsite: http://www.keefkenya.org/


Profile Jun-10 Jun-11 Jun-12Active Borrowers 2,382 3,377 11,685Gross Outstanding Portfolio (USD) 412,942 317,917 861,214Total Assets (USD) 732,778 687,234 1,186,701PAR 30 N/A N/A 1.9%ROE 12.1% 21.6% 25.8%ROA 10.5% 18.8% 20.3%Oper. Self-sufficiency (OSS) 140.5% 166.7% 185.3%Staff productivity (borrow.) N/A N/A 467LO productivity (borrow.) N/A N/A 649Portfolio Yield 50.7% 83.2% 59.3%Operating Expense ratio 41.8% 50.0% 34.6%Oper. Expense ratio (over assets) 24.4% 25.6% 21.6%Funding Expense ratio 2.6% 5.0% 3.5%Provision Expense ratio 0.0% 0.0% 0.0%Debt/Equity Ratio 0.2 0.1 0.4

20%

33%

47%

0%


Domestic Debt

International Debt

Equity

Other


K-REP BANK

Mission: To provide inclusive financial services that

create value and enrich the lives of our customers, shareholders, employees and the

community

Vision: To be the financial services provider of choice

Background K-Rep Bank was formed by the K-Rep Group (Kenya Rural Enterprise Programme) and in 1987, K-Rep Ltd took form as a local NGO to run its micro-credit lending program. With growth of operations, K-Rep Bank was established in 1999 to concentrate on group based microcredit lending activities as their main credit product serving small and micro enterprises.

Overview Over the past three years, K-REP client base has reduced while its loan book has grown, indicating an increase in the average outstanding loan amount. Profitability is sound and stable over the past 2 years ; OSS is achieved all three years. Porfolio yield increased as portfolio quality improved (although PAR 30 remains significant at 15.8%). Operational efficiency also improved while funding expenses increased. The debt leverage remains stable over the past three years.

Charter type BankYear of starting operations 1999No. Branches (Dec 12) 36Staff (Dec 12) 471Loan officers (Dec 12) 150MIS na

Contact details

na

Mr Albert Ruturi - CEOK-Rep Centre, Wood Avenue, NairobiTel: +254 (0)203871511 /(0)711058000Email: [email protected]: http://www.k-repbank.com/


Profile Dec-10 Dec-11 Dec-12Active Borrowers 65,073 57,917 47,229Gross Outstanding Portfolio (USD) 74,134,574 85,412,437 87,861,297Total Assets (USD) 94,982,815 109,544,177 110,999,550Total Savings (USD) 67,545,965 75,774,769 77,320,707PAR 30 22.4% 16.6% 15.8%ROE 4.5% 13.9% 13.7%ROA 0.7% 2.0% 2.1%Oper. Self-sufficiency (OSS) 108.4% 116.3% 115.8%Staff productivity (borrow.) N/A N/A 100LO productivity (borrow.) N/A N/A 315Portfolio Yield 19.5% 21.8% 25.1%Operating Expense ratio 19.1% 16.1% 15.0%Oper. Expense ratio (over assets) 14.7% 12.6% 11.8%Funding Expense ratio 3.1% 1.9% 5.4%Provision Expense ratio 1.0% 4.4% 3.9%Debt/Equity Ratio 5.6 6.0 5.3

10%

16%

11%

33%

26%

4%


Domestic Debt

Equity

Compulsory Savings

Demand Deposits

Term Deposits

Other


KENYA WOMEN FINANCE TRUST (KWFT)

Mission: To partner with women in their creation

of wealth

Vision: To be the women financial solution provider

with a difference

Background KWFT was founded by a group of professional women in the year 1981 to address the financial needs of women exclusively and to bridge the gap in outreach to the financially excluded. KWFT has since then grown, building on an extensive network coverage deepening outreach in the urban and rural set up targeting women entrepreneurs. KWFT became the second DTM in Kenya after it was issued with Deposit taking license by the CBK in 2010. The main credit product is group based business loan targeting micro and small entrepreneurs.

Overview After a decrease in the loan book and client base in 2011, positive growth is achieved in 2012 thanks to expansion in new areas and good customer service. The amount of savings collected follows an upward trend. Portfolio quality improved significantly over the past three years. The level of profitability is decreasing as the strong portfolio yield increase in 2012 is not sufficient to compensate the growth of the funding and operating expenses. However, sustainability is sound as operational self-sufficiency remains achieved all three years.

Charter type DTMYear of starting operations 1981No. Branches (Dec 12) 23Staff (Dec 12) 2,198Loan officers (Dec 12) 1,096MIS T24

Contact details

23

Mwangi Githaiga - Managing DirectorKiambere Road, Upper Hill Nairobi Tel:+254 (0)20-2715334/(0)729920920Email: [email protected]: www.kwftdtm.com


Profile Dec-10 Dec-11 Dec-12Active Borrowers 312,610 248,187 247,375Gross Outstanding Portfolio (USD) 152,038,345 134,675,901 153,125,517 Total Assets (USD) 234,773,220 200,260,556 237,026,144 Total Savings (USD) 76,317,845 83,190,526 108,766,093 PAR 30 15.5% 6.1% 5.7%ROE 16.7% 13.1% 8.2%ROA 1.4% 1.3% 0.9%Portfolio Yield 30.9% 30.9% 37.5%Oper. Self-sufficiency (OSS) 111.8% 106.6% 105.2%Staff productivity (borrow.) N/A N/A 113LO productivity (borrow.) N/A N/A 226Operating Expense ratio 20.2% 24.5% 27.9%Oper. Expense ratio (over assets) 13.1% 16.2% 18.3%Funding Expense ratio 7.5% 9.6% 10.3%Provision Expense ratio 0.9% -1.9% 0.3%Debt/Equity Ratio 10.7 7.9 7.9

25%

14%

34%

7%

5%4%

11%


Domestic Debt

International Debt

Compulsory Savings

Demand Deposits

Term Deposits

Other

Equity


MICRO AFRICA LIMITED

Mission: To transform the livelihoods of its clients

who are in viable economic activities while creating a rewarding and

stimulating working environment for its employees.

Vision: To be a market leader and a partner of

choice in the provision of Innovative, Profitable and Customer Focused Financial

Services to small and micro entrepreneurs in Eastern Africa

Background Micro Africa Ltd. Kenya is an affiliate of the Micro Africa Limited (MAL) Group network and was founded in September 2000 to provide customer focused credit services. The diversified product offer targets the low income individuals and the micro entrepreneurs. Their main credit product is business loans targeting business persons.

Overview Micro Africa has continued to experience a strong postive growth over the past 3 years due to geographical expansion, diversified product offering, and market demand. PAR 30 increased to 4.9% in December 2012. Profitability has been decreasing over the past three years as the cost of funding, the provision and the operational expenses have increased. As of 2012, operational self-sufficiency has not been achieved yet.

Charter type NBFI (for profit)Year of starting operations 2000No. Branches (Dec 12) 12Staff (Dec 12) 121Loan officers (Dec 12) 84MIS Abacus

Contact details

-

Charles Njoroge - CEOCape Office Park, 2nd floor, Ring Road Kilimani, NairobiTel:+254 (0)20 3861 681-4 / (0)726564996 Email: [email protected]: http://www.letshego.com/kenya/index.php


Profile Dec-10 Dec-11 Dec-12Active Borrowers 5,768 9,493 11,989Gross Outstanding Portfolio (USD) 3,060,186 5,199,822 8,737,175 Total Assets (USD) 8,353,508 10,638,594 14,902,885 PAR 30 4.4% 3.6% 4.9%ROE 8.1% 0.6% -5.4%ROA 4.5% 0.3% -1.7%Oper. Self-sufficiency (OSS) 122.6% 102.1% 96.1%Staff productivity (borrow.) N/A N/A 99LO productivity (borrow.) N/A N/A 143Portfolio Yield 38.4% 43.4% 44.2%Operating Expense ratio 38.5% 31.4% 34.8%Oper. Expense ratio (over assets) 13.3% 13.7% 19.0%Funding Expense ratio 7.0% 9.2% 12.0%Provision Expense ratio 2.0% 2.9% 5.0%Debt/Equity Ratio 0.9 1.6 2.9

54%

26%

20%


Domestic Debt

Equity

Other


MILANGO FINANCIAL SERVICES LTD

Mission:

To maximize wealth creation through innovative and relevant financial, training

and business development services.

Vision:

Empowering every Kenyan to change the society and conquer poverty.

Background Milango Kenya began in March 2009, inspired from the vision of a single entrepreneur. Milango Kenya’s main credit product is group based business loans that target micro and small entrepreneurs. By leveraging and utilizing technology and seeking young, vibrant, and innovative staff, Milango is able to offer a fusion of other benefits such as green energy solutions, micro-housing, and micro-insurance. Milango aims in the coming years to expand its operations to other counties within Kenya.

Overview Milango’s client base has reduced over the past three years while the loan book has increased in 2011 before decreasing in 2012. Portfolio quality has significantly deteriorated. Operational self-sufficiency was reached in 2011 but dropped at 70.7% in 2012, because of the strong increase of operational costs and the reduction of portfolio yield. Debt leverage increased in 2012.

Charter type NBFI (for profit)Year of starting operations 2009No. Branches (Dec 12) 5Staff (Dec 12) 60Loan officers (Dec 12) 30MIS Microbanker

Contact details

-

Johnson Kithendu - MDRozina Building, Moi AvenueTel: +254 (041) 2009222/(0)717177056Email: [email protected]: www.milangokenya.co.ke/


Profile Dec-10 Dec-11 Dec-12Active Borrowers 6,614 4,920 3,646Gross Outstanding Portfolio (USD) 1,549,797 1,677,739 1,300,406Total Assets (USD) 1,585,937 2,054,045 1,918,061PAR 30 3.0% 7.7% 17.2%ROE -40.8% 5.9% -70.1%ROA -11.1% 1.3% -12.6%Oper. Self-sufficiency (OSS) 72.4% 109.6% 70.7%Staff productivity (borrow.) N/A N/A 61LO productivity (borrow.) N/A N/A 122Portfolio Yield 29.6% 39.4% 34.3%Operating Expense ratio 32.6% 50.4% 61.8%Oper. Expense ratio (over assets) 28.8% 44.6% 46.3%Funding Expense ratio 3.3% 4.6% 3.6%Provision Expense ratio 9.5% -3.7% 0.1%Debt/Equity Ratio 3.5 3.6 6.1

19%

12%

45%

14%

10%


Domestic Debt

International Debt

Compulsory Savings

Equity

Other


MUSONI KENYA

Mission: To grow, build and maximize the potential of

the business of the poor and unbanked of Kenya through the provision of affordable, flexible and customer-orientated financial

services Vision:

To be the leading Microfinance Institution (hereinafter known as MFI) in Kenya, offering

the best value, most flexible and most customer-orientated financial services in the

market.

Background Musoni Kenya was established in 2010 by Musoni BV to become the first microfinance institution to provide financial services exclusively via mobile technology to serve the poor and reach out to the unbanked population. Musoni Kenya positions itself to be an integral part of the mobile future employing a convenient and flexible service delivery system and is internationally recognized in use of innovative technology.

Overview Musoni’s client base and loan book expanded significantly in 2012. However, the level of profitability dropped because of continued investments in building the company. Musoni Kenya funds its growth with resources coming from shareholder’s capital and debt funding.

Charter type DTMYear of starting operations 2010No. Branches (Dec 12) 5Staff (Dec 12) 75Loan officers (Dec 12) 44MIS na

5

Contact details James Owino - CFOCape Officer Park, Yaya centre, NairobiTel: +254(0)202609355Email: [email protected]: www.musoni.co.ke


224.1

-55.3 3.3

-100

-50

-

50

100

150

200

250

Due to related parties

Equity OtherKES mln


Due to related parties

Equity

Other


OPPORTUNITY KENYA LIMITED

Mission: To empower the economically active

disadvantaged poor through financial and related services which attract and retain a

growing a clientele base

Vision: To be a nationwide agent of economic, spiritual

and social transformation that is a global centre of excellence

Background Opportunity Kenya was incorporated in July 2006 and is a member of the Opportunity International Network. The Institution provides credit services to the economically active poor with the goal of bridging the gap to ensure access to microfinance by the low income bracket. Opportunity Kenya mostly offers group based loans (96% of portfolio) targeting micro and small entrepreneurs.

Overview Opportunity Kenya has maintained a steady growth over the last three years, backed by the introduction of new products, namely asset finance and individual lending. The portfolio quality remains very good. Full OSS has not yet been achieved but the level of profitability is improving thanks to an increased portfolio yield and an enhanced operational efficiency.

Profile Dec-10 Dec-11 Dec-12Active Borrowers 7,374 8,998 9,340Gross Outstanding Portfolio (USD) 3,938,023 4,865,490 5,113,534 Total Assets (USD) 4,964,463 7,101,322 8,336,585 PAR 30 0.6% 0.8% 1.4%ROE N/A -89.9% -11.7%ROA -17.0% -8.3% -2.2%Oper. Self-sufficiency (OSS) 65.6% 76.3% 92.9%Staff productivity (borrow.) N/A N/A 102LO productivity (borrow.) N/A N/A 259Portfolio Yield 33.6% 34.4% 36.8%Operating Expense ratio 53.3% 43.1% 38.9%Oper. Expense ratio (over assets) 48.2% 31.4% 25.1%Funding Expense ratio 2.7% 4.1% 7.8%Provision Expense ratio -4.1% 0.5% 0.8%Debt/Equity Ratio -12.0 3.7 5.1

48%

31%

17%4%


International Debt

Compulsory Savings

Equity

Other


RAFIKI DTM

Mission: Empowering the youth to achieve social and

economic freedom.

Vision: To be the leading change agent in youth entrepreneurship development in Africa.

Background Rafiki DTM is a nationwide Deposit Taking Micro Finance Institution which is a wholly owned subsidiary of Chase Bank (Kenya) Limited. Rafiki DTM offers ideal banking solutions to their clients drawn from various segments of the economy which include: farmers, salaried and employed, self-help groups and investment clubs. Their main credit product is individual business loans targeting micro and small entrepreneurs.

Overview Since it started operating in 2011, Rafiki DTM has continued to experience an increase in both their client base and loan book; due to the increase in branches as they set their footprint in other counties (namely Kiambu, Mombasa, Makueni and Nairobi). Portfolio quality deteriorated in 2012 as to enter the market, Rafiki concentrated on one product which involved unsecured lending. Although operating, funding and provision expenses are high, Rafiki achieves operational self-sufficiency in 2012 thanks to a high portfolio yield and a high income on financial investments. The debt leverage increased significantly in 2012.

Other : due to related parties and short term deposits and balances due to banking institutions


Contact details

5

George Mbira - General ManagerBiashara Street , Nairobi Tel: +254(0)20-216 6401/ (0)719 804 370Email: [email protected]:http://www.rafiki.co.ke/


Profile Dec-11 Dec-12Active Borrowers 623 2,954Gross Outstanding Portfolio (USD) 1,057,418 6,099,612 Total Assets (USD) 4,414,030 21,553,938 Total Savings (USD) 1,027,167 5,696,027 PAR 30 N/A 30.8%ROE -11.4% 3.6%ROA -3.5% 0.4%Oper. Self-sufficiency (OSS) 47.6% 103.5%Staff productivuty (borrow.) N/A 23LO productivity (borrow.) N/A 72Portfolio Yield 8.7% 43.3%Operating Expense ratio 38.3% 45.5%Oper. Expense ratio (over assets) 9.2% 12.5%Funding Expense ratio 0.9% 19.3%Provision Expense ratio 0.0% 3.9%Debt/Equity Ratio 2.3 12.2

24%

2%

24%8%

42%


Domestic Debt

Compulsory Savings

Demand Deposits

Equity

Other


Pamoja Women Development Program (PAWDEP)

Mission:

Vision:

Background PAWDEP is a Financial NGO founded in 2003 and duly registered in 2004. PAWDEP provides microfinance solutions mainly focusing on the economically disadvantaged women in rural and urban areas and mostly uses group lending with recent diversification in its target to include men. The head quarters are based in Kiambu county. PAWDEP mostly offers business loans to both groups and individuals targeting small and medium enterprises.

Overview PAWDEP’s gross outstanding portfolio remains relatively stable over the last three years, with a slight growth in 2012. Portfolio quality improved in 2012. Though PAWDEP remained sustainable over the last three years profitability decreased in 2012 due to a decrease in portfolio yield and a greater cost of funding. However, efficiency improved significantly in 2012. The debt leverage is high, with a debt over equity ratio at 10.4 in 2012.

Charter type NGOYear of starting operations 2004No. Branches (Dec 12) 11Staff (Dec 12) 103Loan officers (Dec 12) 57MIS Loan Performer

Contact details-

Mary M. Chege - CEO Kikinga House, Biashara Street, KiambuTel: 0715792111/+254 (0)20 238 3881Email: [email protected] Website: www.pawdep.org


Profile Dec-10 Dec-11 Dec-12Active Borrowers 41,172 39,124 39,401Gross Outstanding Portfolio (USD) 8,606,707 7,798,788 8,103,878 Total Assets (USD) 9,392,552 8,344,968 8,571,314 PAR 30 7.5% 8.8% 7.8%ROE 4.3% 4.2% 1.6%ROA 0.3% 0.4% 0.1%Oper. Self-sufficiency (OSS) 103.3% 102.6% 101.5%Staff productivuty (borrow.) N/A N/A 383LO productivity (borrow.) N/A N/A 691Portfolio Yield 21.1% 19.4% 18.0%Operating Expense ratio 19.1% 18.4% 13.4%Oper. Expense ratio (over assets) 16.6% 17.1% 12.6%Funding Expense ratio 2.4% 1.7% 5.8%Provision Expense ratio 0.8% -0.1% 0.1%Debt/Equity Ratio 11.4 10.2 10.4

5%

17%

68%

9% 1%


Domestic Debt

International Debt

Compulsory Savings

Equity

Other


KENYA POST OFFICE SAVINGS BANK (KPOSB)

Mission: To provide accessible and sustainable

banking and other related financial services through innovative delivery systems for

wealth creation to the benefit of customers and other stakeholders.

Vision:

To be the Bank of choice.

Background Postbank was established in 1910 and is wholly owned by the Government of Kenya. It primarily engages in the mobilization of savings for national development and operates under the Kenya Post Office Savings Bank Act Cap 493(B). The Bank offers a wide range of over 28 savings, investment, transactional and money transfer/remittance services catering for all segments of the market through diverse channels that include Postbank branches, Postbank Mashinani agents, ATMS, PataCash mobile banking and internet banking.

Overview Postbank has maintained a steady growth path over the past three years. Profitability has remained sound and stable.

Charter type BankYear of starting operations 1910No. Branches (Dec 12) 99Staff (Dec 12) 798Loan officers (Dec 12) n/aMIS na

Contact details

99

Dr. Nyambura Koigi, DBA, MBS - CEO Postbank House, 16th Banda street, NairobiTel: +254(0)202803202/ (0)713053976Email: [email protected]; [email protected]: http://www.postbank.co.ke/


Profile Dec-10 Dec-11 Dec-12Active Borrowers N/A N/A N/AStaff loans (USD) 9,142,239 10,417,271 11,307,317Total Assets (USD) 240,993,214 280,536,020 298,572,749Total Savings (USD) 166,126,778 208,611,422 231,501,262PAR 30 N/A N/A N/AROE 5.6% 8.2% 8.4%ROA 0.6% 0.9% 0.9%Oper. Self-sufficiency (OSS) 104.7% 108.5% 106.5%Staff productivity (borrow.) N/A N/A N/ALO productivity (borrow.) N/A N/A N/APortfolio Yield 4.7% 4.4% 4.4%Operating Expense ratio 314.1% 226.8% 275.5%Oper. Expense ratio (over assets) 11.1% 8.5% 10.3%Funding Expense ratio 50.4% 61.7% 95.0%Provision Expense ratio 3.6% 0.1% 0.3%Debt/Equity Ratio 7.0 8.3 8.2

11%

75%

2%12%


Equity

Demand Deposits

Term Deposits

Other


REMU DTM LIMITED

Mission: We provide unique and innovative financial services in a manner that adds value to all

stakeholders.

Vision:

To be a model Financial services provider with the capacity to address the needs of all.

Background REMU DTM acquired the deposit taking license from CBK in January 2011 as a start-up microfinance institution to become the fifth Deposit Taking Microfinance to provide financial solutions targeting small and medium enterprises with a view to bridge the financial inclusion gap. Remu DTM’s main credit product is individual business loan targeting small and medium enterprises.

Overview In its second year of operations, Remu DTM experienced a strong growth both in its loan book and client base. Portfolio quality dropped due to delayed repayments as a result of distances to branches. The DTM was in the process of introducing mobile banking to ease the accessibity hitch. Although revenue improved, it did not to cover the operating expenses which increased with establishment of a New Business Unit towards end of the year. Operational self-sufficiency is therefore not yet achieved although improving. The strong level of capitalization leaves room for further debt leverage.


na

Contact details Lydia Kibaara - CEOFinance House,Loita street Tel: +254(0)20-2214483 / (0)733 554 555Email: [email protected]; [email protected]: http://www.remultd.co.ke/


Profile Dec-11 Dec-12Active Borrowers 310 548Gross Outstanding Portfolio (USD) 498,939 1,033,189Total Assets (USD) 1,461,657 2,112,681Total Savings (USD) 235,918 790,494PAR 30 6.8% 14.2%ROE -13.6% -7.4%ROA -11.6% -4.9%Oper. Self-sufficiency (OSS) 51.8% 67.8%Staff productivity (borrow.) N/A 22LO productivity (borrow.) N/A 55Portfolio Yield 22.0% 28.0%Operating Expense ratio 86.4% 52.5%Oper. Expense ratio (over assets) 22.7% 22.5%Funding Expense ratio 0.3% 3.4%Provision Expense ratio 5.4% 2.3%Debt/Equity Ratio 0.25 0.77

57%

4%

11%

22%

6%


Equity

Compulsory Savings

Demand Deposits

Term Deposits

Other


RUPIA MICROCREDIT LTD

Mission: To significantly strengthen the economic base of the poor and the low income entrepreneurs through increased access to a wide range of

financial services including loans, savings and money transfers.

Vision: Rupia envisages a future with entrepreneurial

ventures transformed and economically empowered population, reaping the fruits of

their entrepreneurial ventures.

Background Rural and Urban Projects Investment Agency Ltd (RUPIA) is a fast growing microfinance institution based in Western, Nyanza and Rift Valley Provinces. It was registered on February, 2006 under the Company’s Act by a group of private investors. RUPIA Ltd provides a wide range of market led financial products to low income entrepreneurs which include working capital, emergency, agricultural, medical,asset and education loans. At least 65 per cent of the active clientele are youth. RUPIA Ltd uses a group based lending methodology based on the GRAMEEN Model applying best practice and holistic principles of microfinance development.

Overview RUPIA Microcredit Ltd has continued to experience growth both in its loan book and client base over the past three years; although the limited Marketing resources have inhibited a strong growth in outreach. Portfolio quality has remained good. Operational self-sufficiency was above 100% all three years and profitability indicators have remained stable. Both portfolio yield and operating expense ratio are at a high level. The debt leverage is also high.

Charter type NBFI (for profit)Year of starting operations 2005No. Branches (Dec 12) 5Staff (Dec 12) 18Loan officers (Dec 12) 6MIS na

Contact details

5

Mildred Wafula - Operations Manager View Park Towers, 10th FloorP.O. Box 2987-00200 NairobiTel : +254 (0)2251389/(0)721332262Email : [email protected]


Profile Dec-10 Dec-11 Dec-12Active Borrowers 1,000 1,708 1,902Gross Outstanding Portfolio (USD) 208,713 220,112 303,194Total Assets (USD) 259,653 285,339 341,167PAR 30 N/A 2.1% 1.3%ROE 298.8% 48.7% 25.0%ROA 2.0% 1.6% 1.5%Oper. Self-sufficiency (OSS) 107.1% 106.0% 104.4%Staff productivity (borrow.) N/A N/A 106LO productivity (borrow.) N/A N/A 317Portfolio Yield 38.0% 50.3% 47.8%Operating Expense ratio 32.0% 45.0% 48.2%Oper. Expense ratio (over assets) 25.7% 35.4% 40.3%Funding Expense ratio 1.1% 2.5% 3.9%Provision Expense ratio 2.3% 0.0% 4.8%Debt/Equity Ratio 146.8 17.6 14.7

25%

38%

6%

31%


Domestic Debt

Other (includes loan insurance fund)Equity

Loan from directors


SAMCHI CREDIT LIMITED

Mission: To be the first port of call when an SME or

individual needs liquidity

Vision: To be a leading provider of Financial solutions

in Africa for SMEs

Background Samchi Credit Limited started its operations in the year 2012. Samchi Credit is a lender to the SME's and individuals against liquid assets.

Overview In its first year of operations, Samchi Credit Ltd reached 203 active borrowers and a loan book amounting to USD 177,593. Portfolio quality is good. Operational self-sufficiency is not yet achieved as setting-up costs are high and economies of scale remain to be reached. Samchi credit has no debt funding yet.

Charter type NBFI (for profit)Year of starting operations 2012No. Branches (Dec 12) 1Staff (Dec 12) 5Loan officers (Dec 12) 4MIS Pastel

Contact details

-

Kevin Mutiso - Executive DirectorParklands Plaza, NairobiTel: +254(0)20521178 / (0)708777770Email: [email protected] Website: http://www.samchicredit.co.ke


Profile Dec-12Active Borrowers 203Gross Outstanding Portfolio (USD) 177,593Total Assets (USD) 202,476PAR 30 1.8%ROE -7.1%ROA -6.7%Oper. Self-sufficiency (OSS) 81.7%Staff productivity (borrow.) 41LO productivity (borrow.) 51Portfolio Yield 32.2%Operating Expense ratio 41.6%Oper. Expense ratio (over assets) 36.5%Funding Expense ratio 0.0%Provision Expense ratio 0.0%Debt/Equity Ratio 0.1

6%

94%


Other

Equity


SISDO

Mission: To provide reliable and affordable financial

services to entrepreneurs for wealth creation and improved livelihoods.

Vision: To be the financial services provider of choice

to entrepreneurs.

Background SISDO was initially established in 1991 as a Smallholder Irrigation Schemes Development Organization and became a fully fledged microfinance institution registered as an NGO. SISDO provides financial services targeting the small holder crop and dairy farmers, agribusinesses and other micro-entrepreneurs with a focus on the rural and urban low income communities. The main credit product is business loan that is channeled through groups.

Overview SISDO’s loan book has grown over the past three years as clients retention is high with an increased rate of borrowing. However, the client base has slightly decreased as SISDO has been focusing on improving portfolio quality. PAR has indeed reduced thanks to intensified repayment collections at the branch level and the introduction of mechanisms for default management. Profitability indicators are on a positive trend as portfolio yield is increasing while provision expenses are decreasing. The debt leverage remains low.

Charter type NGOYear of starting operations 1991No. Branches (Dec 12) 16Staff (Dec 12) 89Loan officers (Dec 12) 43MIS Bankers Realm

Contact details

13

Simon Maina - CEO Ngong Lane, off Ngong Road Tel: +254(0)72220008/ (0)203870280P.O. Box 76622-00508 NairobiEmail:[email protected] Website: http://www.sisdo.org


Profile Dec-10 Dec-11 Dec-12Active Borrowers 8,332 8,371 7,566Gross Outstanding Portfolio (USD) 2,974,694 3,467,226 3,540,786Total Assets (USD) 5,133,448 5,494,703 6,126,053PAR 30 8.9% 9.6% 7.1%ROE 12.9% 7.9% 16.0%ROA 4.5% 2.7% 5.5%Oper. Self-sufficiency (OSS) 130.4% 114.9% 129.6%Staff productivity (borrow.) N/A N/A 85LO productivity (borrow.) N/A N/A 176Portfolio Yield 30.6% 33.6% 34.7%Operating Expense ratio 27.3% 26.3% 26.0%Oper. Expense ratio (over assets) 15.9% 16.0% 15.7%Funding Expense ratio 2.5% 2.7% 2.9%Provision Expense ratio -4.1% 1.1% 1.9%Debt/Equity Ratio 1.8 1.9 1.9

17%

35%

40%

8%


Domestic Debt

Equity

Compulsory Savings

Other


SUMAC DTM LIMITED

Mission: To mobilize and prudently apply resources as a deposit taking microfinance institution for

the benefit of our customers and other stakeholders

Vision: To be the preferred deposit taking

microfinance institution in providing solutions to our customers

Background Sumac DTM Limited is a financial institution registered under the Companies Act. Sumac specializes in providing bridging finances to both individuals and companies, by offering asset financing, personal and business loans as well as insurance services. Sumac DTM was granted the deposit-taking license in October 2012 and became the 8th DTM in Kenya. The main credit product is individual based loans that target micro and small entrepreneurs.

Overview SUMAC has experienced a strong growth in 2011, which slowed down in 2012. Portfolio quality has been deteriorating over the past three years. Profitability is on a downward trend because of very high and increasing operating expenses, Portfolio yield increases significantly in the last two years. OSS remains above 100% over the three years. The debt leverage is very low.


Contact details

2

Duncan Mwaniki - Managing DirectorConsolidating Bank BuildingTel: +254(0)20 2210440/(0)725 223 499E-mail: [email protected]@sumadtm.co.keWebsite: http://www.sumacdtm.co.ke/


Profile Dec-10 Dec-11 Dec-12Active Borrowers 199 206 247Gross Outstanding Portfolio (USD) 843,638 1,226,956 1,218,035Total Assets (USD) 1,057,339 1,501,767 2,110,987Total Savings (USD) 0 0 6,500PAR 30 5.0% 7.1% 7.3%ROE 5.6% 5.5% 3.2%ROA 5.3% 4.6% 2.7%Oper. Self-sufficiency (OSS) 130.4% 115.6% 109.1%Staff productivity (borrow.) N/A N/A 9LO productivity (borrow.) N/A N/A 62Portfolio Yield 41.3% 52.0% 51.1%Operating Expense ratio 29.4% 45.5% 48.1%Oper. Expense ratio (over assets) 20.0% 36.8% 32.5%Funding Expense ratio 4.4% 4.5% 3.9%Provision Expense ratio 2.9% 1.3% 1.2%Debt/Equity Ratio 0.0 0.3 0.1

9%

88%

3%


Domestic Debt

Equity

Demand Deposits

Other


SMEP DTM LIMITED

Mission: To improve the quality of life of our customers through the provision of competitive market

driven financial solutions

Vision: To be a model christian provider of financial solutions to transform the lives of the poor in

Kenya and beyond

Background SMEP DTM began as a programme of the National Council of Churches of Kenya (NCCK) to offer microcredit services and was incorporated as SMEP Ltd. by Guarantee in 1999. SMEP was awarded the deposit-taking nationwide license in December 2010 to become the third deposit taking MFI in Kenya. Their main credit product is business loan targeting individuals, groups, churches and corporate bodies.

Overview SMEP has continued to experience a positive growth both in its client base and loan book over the past three years. OSS is above 100% and profitability is improving thanks to a better portfolio yield, a higher return on financial investments and lower provision expenses. Debt/Equity ratio decreased significantly due to a strong increase in equity and a decrease in debt funding.

Charter type DTMYear of starting operations 1975No. Branches (Dec 12) 44Staff (Dec 12) 289Loan officers (Dec 12) 158MIS T24

Contact details

27

Phyllis Mbungu - CEOKirichwa Rd. Off Argwings Kodhek Rd.Tel: +254 20 3870191 /(0)711 606900Email: [email protected] Website: http://www.smep.co.ke


Profile Dec-10 Dec-11 Dec-12Active Borrowers 37,758 51,831 54,430Gross Outstanding Portfolio (USD) 15,605,767 18,010,135 18,292,400 Total Assets (USD) 23,028,107 23,489,651 26,621,962 Total Savings (USD) 7,603,873 9,567,546 11,790,611 PAR 30 8.7% 8.9% 17.2%ROE 1.6% 6.2% 10.3%ROA 0.3% 0.9% 2.1%Oper. Self-sufficiency (OSS) 103.5% 105.1% 114.2%Staff productivity (borrow.) N/A N/A 188LO productivity (borrow.) N/A N/A 344Portfolio Yield 28.2% 30.3% 33.9%Operating Expense ratio 22.9% 24.1% 25.8%Oper. Expense ratio (over assets) 15.8% 17.4% 18.7%Funding Expense ratio 4.8% 5.7% 5.8%Provision Expense ratio 2.5% 3.8% 2.1%Debt/Equity Ratio 5.3 6.8 2.7

26%

27%0%

29%

16%2%

Equity and Liabilities structure (Dec 2012)

Domestic Debt

Equity

Funds under managementDemand Deposits

Short Term Deposits

Other


SPRINGBOARD CAPITAL LIMITED

Mission: To offer unmatched, focused financial

services to our targeted customers and support them to grow economically.

Vision: To be the most preferred microcredit

organization of choice in all the areas of our operation by our entrepreneurial

customers.

Background Springboard Capital traces its roots to a social welfare group formed in 2000 by four individuals and was then converted into an investment club. Springboard Holdings Limited was formed in 2004, based on an equal member’s shareholding aligned to every individual member’s contribution to the investment club. Springboard Holdings Limited grew its membership, investing in real estate properties. In 2008, the holding company changed its investment strategy and started lending to its members. This marked the beginning of a formal financial lending institution - Springboard Capital Limited - that entered into microcredit business with non-members in 2010 and has plans to transform into a Deposit-Taking Microfinance.

Overview Springboard Capital experienced a strong growth in 2012, both in terms of loan portfolio and client base. Portfolio quality slightly improved in 2012. Profitability is very high and on an upward trend, due to a very high increase in portfolio yield and a very limited cost of funding as Springboard Capital almost exclusively funds its operations with equity.

Charter type NBFI (for profit)Year of starting operations 2010No. Branches (Dec 12) 1Staff (Dec 12) 9Loan officers (Dec 12) 3MIS kylix

-

Contact details Wilson Karanja - CEO Murang'a road, 1st floor Kensia House, Nairobi Tel: 0722818921Email:[email protected] www.springboardcapital.co


Profile Dec-11 Dec-12Active Borrowers 98 239Gross Outstanding Portfolio (USD) 301,647 638,401Total Assets (USD) 348,638 661,091PAR 30 11.8% 10.3%ROE 12.7% 25.6%ROA 9.8% 16.9%Oper. Self-sufficiency (OSS) 286.7% 222.8%Staff productivity (borrow.) N/A 27LO productivity (borrow.) N/A 80Portfolio Yield 24.4% 45.3%Operating Expense ratio 8.7% 19.9%Oper. Expense ratio (over assets) 7.5% 18.5%Funding Expense ratio 0.0% 0.0%Provision Expense ratio 0.0% 1.2%Debt/Equity Ratio 0.3 0.7

32%

60%

8%


Borrowings from shareholdersEquity

Other


TAIFA OPTION MICROFINANCE LIMITED Mission:

To empower MSE's through provision of financial and non financial services to

enhance employment opportunities and business growth

Vision: To be a model financial service provider for

a working nation

Background Taifa Option Microfinance Ltd was incorporated in 2005 as a Company Limited by Shares. It is a member based Company in which members buy shares as part owners. It exclusively operates in the Ruiru area (central province), offering both individual and group loans as well as savings services to its members.

Overview Taifa options experienced strong growth in 2011 as there were many loan disbursements to farmers. OSS was achieved in 2011, profitability decreased in 2012 but remains positive. Efficiency improved significantly with economies of scale. Portfolio quality is good in 2012.

Charter type NBFI (for profit)Year of starting operations 2005No. Branches (Dec 12) 1Staff (Dec 12) 7Loan officers (Dec 12) 2MIS na

Contact details

-

Francis Macharia - CEOFinance House, Kenyatta HighwayTel : +254(0)675855169/(0)725315978E-mail : [email protected]; website: http://taifaoptionfinance.kbo.co.ke/


Profile Dec-10 Dec-11 Dec-12Active Borrowers 300 620 500Gross Outstanding Portfolio (USD) 113,985 311,596 375,749Total Assets (USD) 270,482 414,688 781,545PAR 30 N/A N/A 1.2%ROE -7.6% 16.6% 6.0%ROA -6.6% 15.5% 5.9%Oper. Self-sufficiency (OSS) 54.5% 201.5% 166.0%Staff productivity (borrow.) N/A N/A 71LO productivity (borrow.) N/A N/A 250Portfolio Yield 6.8% 15.2% 18.5%Operating Expense ratio 28.4% 24.4% 12.7%Oper. Expense ratio (over assets) 14.2% 15.3% 7.3%Funding Expense ratio 0.3% 0.0% 2.8%Provision Expense ratio 0.0% 0.0% 0.0%Debt/Equity Ratio 0.1 0.0 0.0

99%

1%


Equity

Other


YEHU Mission:

Empower rural marginalized entrepreneurs socially and economically

through enhanced accessibility to innovative, affordable and sustainable

financial solutions that are environmentally friendly

Vision:

Background Yehu was founded in 1998 as a project of Choice Humanitarian Kenya, an international NGO based in the US. In July 2007, it was transformed into a Trust company and in April 2011 into a private company limited by shares. Yehu covers 7 of the 13 Coastal districts and mostly serves women through the group lending methodology.

Overview Yehu experienced significative growth both in its client base and loan book thanks to branch network expansion, marketing and change of strategy in service delivery. There is still unexploited potential in the rural areas which is their main focus as an institution. Portfolio quality has deteriorated over the past three years. OSS remains above 100% during the three years while profitability is improving thanks to a higher portfolio yield and better operational efficiency through economies of scale. The funding expense ratio increases as Yehu receives more debt funding.

Charter type NBFI (for profit)Year of starting operations 1998No. Branches (Dec 12) 8Staff (Dec 12) 79Loan officers (Dec 12) 38MIS Kredits

Contact details

8

Adet Kachi - CEOBuxton, Behind Cool Breeze Hotel, MombasaTel:254-(0)41-2492598/ (0)722506563 Email: [email protected]:www.yehu.org


Profile Dec-10 Dec-11 Dec-12Active Borrowers 6,348 11,411 17,657Gross Outstanding Portfolio (USD) 1,295,390 2,424,157 3,132,076 Total Assets (USD) 2,814,078 4,471,461 5,759,002 PAR 30 1.9% 3.4% 6.2%ROE 0.1% 3.3% 16.1%ROA 0.0% 0.9% 3.6%Oper. Self-sufficiency (OSS) 100.2% 104.8% 119.1%Staff productivity (borrow.) N/A N/A 224LO productivity (borrow.) N/A N/A 465Portfolio Yield 35.1% 36.6% 41.3%Operating Expense ratio 37.0% 29.1% 25.9%Oper. Expense ratio (over assets) 15.6% 14.9% 14.1%Funding Expense ratio 6.9% 8.5% 11.5%Provision Expense ratio 0.9% 0.9% 2.0%Debt/Equity Ratio 1.7 3.3 3.6

25%

18%

30%

22%

5%


Domestic Debt

International Debt

Compulsory Savings

Equity

Other


AANNNNEEXX 11:: LLIISSTT OOFF PPAARRTTIICCIIPPAANNTTSS

Credit-only MFIs DTMs Banks AAR Credit Services Faulu DTM Equity Bank Bimas KWFT DTM Jamii Bora Bank ECLOF Kenya K-REP Bank Greenland Fedha Postbank

Juhudi Kil imo Kadet Ltd KEEF MicroAfrica Ltd

Musoni Opportunity Kenya PAWDEP Platinum Credit Ltd REMU Rupia Ltd SISDO SMEP SUMAC Credit Ltd

YEHU

Milango Financial Services Ltd

Jitegemea Credit Scheme

Kadet: FS end in September

2010

TAIFA Option Microfinance Ltd

GreenLand Fedha and KEEF: FS end in June

Credit-only MFIs DTMs Banks AAR Credit Services Faulu DTM Equity Bank Bimas KWFT DTM Jamii Bora Bank Century Rafiki DTM K-REP Bank ECLOF Kenya REMU DTM Postbank Greenland Fedha SMEP DTM

Juhudi Kil imo Kadet Ltd KEEF MicroAfrica Ltd

Musoni Opportunity Kenya PAWDEP Platinum Credit Ltd Rupia Ltd SISDO

SUMAC Credit Ltd

U&I YEHU

Rafiki: 6 months FS


Jitegemea Credit Scheme

GreenLand Fedha and KEEF: FS end in June Kadet: FS end in September

U&I: only included in Part 1 of the publication

2011

TAIFA Option Microfinance Ltd

Springboard Capital Ltd

Credit-only MFIs DTMs Banks AAR Credit Services Century DTM Equity Bank Bimas Faulu DTM Jamii Bora Bank ECLOF Kenya KWFT DTM K-REP Bank Greenland Fedha Rafiki DTM Postbank Jitegemea Credit Scheme REMU DTM Juhudi Kil imo SMEP DTM Kadet Ltd SUMAC DTM KEEF MicroAfrica Ltd

Musoni Opportunity Kenya PAWDEP Platinum Credit Ltd Rupia Ltd Samchi Credit SISDO

U&I

YEHU


Kadet: FS end in September U&I: only included in Part 1 of the publication

2012

GreenLand Fedha and KEEF: FS end in June

TAIFA Option Microfinance Ltd Springboard Capital Ltd


AANNNNEEXX 22:: DDEEFFIINNIITTIIOONNSS OOFF TTHHEE RRAATTIIOOSS

Ratio Formula

PROFITABILITY

ROE (before donations) Net income before donations / Average equity

ROA (before donations) Net income before donations / Average assets

Operational Self-sufficiency (OSS) (Financial revenues + Other operating revenues) / (Financial expenses + Provision expenses + Operating expenses)

Portfolio Yield Interest and fee revenues on loan portfolio / Average gross outstanding portfolio

Funding Expense Ratio Interest and fee expenses on funding liabilities / Average gross outstanding portfolio

Provision Expense Ratio Loan loss provision expenses / Average gross outstanding portfolio

ASSET QUALITY

Portfolio at Risk 30 (PAR 30) Outstanding balance on loans with arrears > 30 days / Gross outstanding portfolio



Write-off Ratio Value of loans written-off during the period / Average gross outstanding portfolio

Risk Coverage Ratio (PAR 30) Loan loss reserve / Portfolio at risk >30 days

EFFICIENCY & PRODUCTIVITY Portfolio to Assets Ratio Net outstanding portfolio / Total assets

Average Outstanding Loan Amount. Total outstanding loan amount / Number of active loans

Avg. Outstanding Loan on p.c. GDP Average outstanding loan amount / Per capita GDP

Staff Allocation Ratio Number of loan officers / Number of staff

Loan Officer Productivity – Borrowers Number of active borrowers / Number of loan officers

Loan Officer Productivity – Amount Gross outstanding portfolio / Number of loan officers

Staff Productivity – Borrowers Number of active borrowers / Number of staff

Staff Productivity – Amount Gross outstanding portfolio / Number of staff

Operating Expenses Ratio Operating expenses / Average gross outstanding portfolio

CAPITAL ADEQUACY & ALM

Liquidity over Total Assets Ratio

Cash and cash equivalents / Total assets

Debt to Equity Ratio Total liabilities / Total equity

Equity to Asset Ratio

Total equity / Total assets


AANNNNEEXX 33:: GGEEOOGGRRAAPPHHIICC CCOOVVEERRAAGGEE

Legend:

# MFIs, DTMs and Banks

0 1-5 6-10 11-15 16-20 >20


Province CountyCredit only MFIs, DTMs and Banks

(# branches)#Institutions #Branches

Bimas(2)Eclof Kenya(2)Greenland Fedha(1)Jitegemea CS (1)Kadet(1)KEEF(1)Postbank(8)K-Rep Bank(1)KWFT DTM (1)Microafrica(2)Musoni DTM(1)PAWDEP(5)SISDO(3)SMEP DTM (2)Equity Bank (9)Taifa Options (1)Bimas(2)Equity Bank(3)Faulu DTM(1)Jitegemea CS (1)K-Rep Bank (2)PAWDEP (1)Postbank (1)Eclof Kenya(1)Equity Bank(5)Faulu DTM (1)Juhudi Kilimo (1)Postbank(1)SMEP DTM (1)Bimas(2)Eclof Kenya(1)Equity Bank(2)Faulu Kenya(1)Postbank (1)K-Rep Bank(1)Milango(1)PAWDEP(1)Bimas(1)Eclof Kenya(1)Equity Bank(6)Faulu DTM(1)Jitegemea CS (1)K-Rep Bank (1)KWFT DTM (1)Platinum Credit (1)Postbank(2)SISDO(1)SMEP DTM (2)

TOTAL 90

11 18

7 11

Muranga 6 10

Nyandarua 8 10

CENTRAL Kiambu 16 41

Kirinyaga

Nyeri



Equity Bank(2)Jitegemea CS (1)Postbank (4)K-Rep Bank(1)KWFT DTM(1)Milango (2)SMEP DTM(2)YEHU(1)Equity Bank(1)KWFT DTM(1)Milango(1)Postbank(2)YEHU(4)

Lamu KADET(1) 1 1Faulu Kenya(3)Equity Bank (7)Jamii Bora Bank(1)Jitegemea CS (1)KADET(1)Postbank(5)K-Rep Bank(2)KWFT DTM(1)Milango (2)Microafrica (1)Platinum Credit(1)Rafiki DTM(2)SMEP DTM (3)YEHU(2)Equity Bank(1)KWFT DTM (1)Post Bank(2)SMEP DTM(3)YEHU(1)

Tana River Equity Bank (1) 1 1TOTAL 65

5 8

8 14

Kwale 5 9

Mombasa 14 32

COAST Kilifi

Taita Taveta




Bimas(1)Equity Bank(2)Jitegemea CS (1)K-Rep Bank(1)KWFT DTM (1)Postbank(1)SISDO(2)SMEP DTM (4)Postbank (1)K-Rep Bank(1)SMEP DTM (1)Equity Bank(1)Bimas(2)Equity Bank(2)K-Rep Bank(1)Postbank(2)SMEP DTM (2)Bimas(2)Faulu DTM(2)Equity Bank(4)K-Rep Bank(1)KWFT DTM (1)Microafrica (1)Platinum Credit(1)Postbank(5)SISDO(1)SMEP DTM (2)Bimas(1) Equity Bank(1)K-Rep Bank (2)KWFT DTM (1)Postbank(3)

Marsabit Equity Bank(2) 1 2Bimas (3)Eclof Kenya(2)Equity Bank(4)Faulu DTM (3)Greenland Fedha(1)Jitegemea CS (1)Juhudi Kilimo (1)K-Rep Bank(3)KWFT(1)Postbank(3)REMU(1)SISDO (1)SMEP DTM(2)Bimas(1)Equity Bank(1)SISDO(1)

TOTAL 85

13 26

Tharaka Nithi 3 3

5 9

Machakos 10 20

Makueni 5 8

EASTERN Embu 8 13

Isiolo 4 4

Meru

Kitui



AAR Credit Services (1)Bimas (2)Century DTM (1)ECLOF Kenya(2)Equity Bank (45)Faulu DTM (9)Jamii Bora Bank (11)Jitegemea CS (7)Kadet (2)Postbank (20)K-REP Bank (8)KWFT DTM (3)Micro-Africa (4)Musoni (2)Opportunity Kenya PAWDEP(2)Platinum Credit (1)Rafiki DTM(1)Remu DTM (1)Samchi Credit (1)SISDO(3)SMEP DTM (2)Springboard Capital (1)Sumac Credit (2)U&I (1)

TOTAL 136Wajir Equity Bank (1) 1 1

Equity Bank (2)Postbank(1)

Mandera Equity Bank(1) 1 1TOTAL 5

NORTH EASTERNGarissa 2 3

NAIROBI Nairobi 25 136



Equity Bank(2)Postbank(2)Rupia Ltd (1)Equity Bank(2)Greenland Fedha(1)Juhudi Kilimo (1)K-Rep Bank(1)KWFT DTM (1)Opportunity Kenya(1)Platinum Credit (1)Postbank (2)SMEP DTM (1)Eclof Kenya(1)Equity Bank(2)Faulu DTM(1)Jamii Bora(1)KADET(1)K-Rep Bank(1)Opportunity Kenya(1)Platinum Credit(1)Postbank(1)Rupia Ltd(1)SMEP DTM (1)KWFT DTM (1)Equity Bank(2)Postbank(3)Equity Bank(1)Juhudi Kilimo(1)Postbank(1)Equity Bank(2)Postbank(1)SMEP DTM (1)

TOTAL 41

Siaya 3 4

11 12

Migori 3 6

Nyamira 3 3

NYANZA Homa Bay 3 5

Kisii 9 11

Kisumu




Equity Bank(1)Faulu DTM(1)Kadet (1)Postbank(2)Eclof Kenya(1)Equity Bank(1)Juhudi Kilimo(1)Kadet(1)Postbank(1)

Elgeyo Marakwet

0 0

Equity Bank(7)K-Rep Bank(1)MicroAfrica(1)Musoni(1)Opportunity Kenya(1)PAWDEP(1)Postbank(4)SISDO(1)SMEP DTM(3)Eclof Kenya(1)Equity Bank(2)Greenland Fedha(1)Juhudi Kilimo (1)K-Rep Bank(1)KWFT DTM (1)Postbank(1)SMEP DTM (1)Equity Bank(1)Faulu DTM (1)K-Rep Bank(1)KWFT DTM (1)Postbank(1)Equity Bank(3)Postbank(2)Rupia Ltd(1)Equity Bank(2)Kadet(1)Postbank(1)Eclof Kenya(1)Equity Bank(5)Faulu DTM (2)Jitegemea (1)Kadet (1)K-Rep (2)KWFT DTM (2)Microafrica(2)Musoni(1)PAWDEP(1)Platinum Credit(1)Postbank(4)SISDO(1)SMEP DTM(4)

Samburu Equity Bank(1) 1 1Eclof Kenya(1)Equity Bank(1)Faulu DTM (1)Juhudi Kilimo(1)K-Rep Bank(1)KWFT DTM (1)Platinum Credit(1)Postbank(1)Equity Bank(1)Postbank(1)

RIFT VALLEY

Trans Nzoia 8 8

Turkana 2 2

Narok 3 4

Nakuru 14 28

Laikipia 5 5

Nandi 3 6

Kajiado 9 20

Kericho 8 9

Baringo 4 5

Bomet 5 5



RIFT VALLEY Eclof Kenya(1)Equity Bank(2)Faulu DTM (1)Jitegemea(1)Juhudi Kilimo (1)Kadet (1)K-Rep Bank(1)KWFT DTM (1)Micro-Africa(1)Opportunity Kenya(1)Platinum Credit(1)Postbank(1)SISDO(1)SMEP DTM (3) Equity Bank (1)Post Bank(1)

TOTAL 112Equity Bank (3)Faulu DTM(1)KWFT(1)Opportunity Kenya(1)Platinum Credit(1)Postbank (2)Rupia Ltd (2)SMEP DTM (1)Eclof Kenya(1)Equity Bank (1)Faulu DTM (1)K-Rep Bank(1)KWFT(1)Opportunity Postbank (2)SISDO (1)SMEP (3)Equity Bank(2)Postbank(1)K-Rep Bank(1)Opportunity Equity Bank(1)Postbank (2)

TOTAL 32

Uasin Gishu 14 17

West Pokot 2 2

12

Busia 4 5

Vihiga 2 3

WESTERN Kakamega 8 12

Bungoma 9


No. MEMBER NAME CEO/CONTACT ADDRESS

BANKS

1. K-rep Bank Ltd Mr. Albert Ruturi-CEO

Contact person: Wycliffe Mwanzi, Microfi nance Manager

K-Rep Centre, Wood AvenueP.O BOX 25363-00603 NAIROBITel 3871511 Fax [email protected]/ [email protected]; [email protected]

2. Equity Bank James Mwangi-CEO

Contact Person – Stephen Kingori

Equity Centre, UpperhillP.O BOX 75104-00200 NAIROBITel: 27366620/[email protected] [email protected]

3. Co-operative Bank Moses M. GitauManager Micro Credit Unit

Co-operative Bank of Kenya LtdCo-operative Hse Building- 4th FloorP.O BOX 48231-00100, NAIROBITEL: 3276210 Fax: [email protected]

4. Kenya Post Offi ce Savings Bank

Nyambura Koigi-CEOTel: 224949Contact person: Vincent Makori

Market Lane Off 17 Banda Street, Postbank HouseP.O BOX 30311-00100NAIROBI.Tel 229551-6 Fax: [email protected]@postbank.co.ke

5. Jamii Bora Bank Sam Kimani – CEO

Pauline Kariuki - PAHead Offi ce, Jamii Bora House,18, koinange StreetP.O. Box 22741-00400Nairobi, Kenya.Tel : 020 2224238-9 / 2210339Mobile : 0722383813/0722201112/0734600682Email : [email protected] [email protected]

WHOLESALE MFIs

6. Jitegemee Trust Ben Mbai – CEO/ Director

Contact person - Florence Odwako

K-Rep Centre, Wood AvenueP.O BOX 21768-00505 NAIROBITel: 3874693/3872998Fax: [email protected]

7. OIKOCREDIT Judy Ngarachu (Regional Director) Contact person-Carol Mulwa(Country Manager)

Methodist Ministries Centre, Olitokitok road2nd FloorP.O BOX 67181 NAIROBITel: 3862314/[email protected]

8. MESPT Jeff Njagi – CEOJohn Masha - General Manager, Credit

2nd fl r vision towers muthithi rd, westlandP.O. Box 187 Sarit Centre 00606 NairobiTel: 3746354/3749942/020-2067885Cell: 0722-207905/0728-817315/[email protected]; [email protected]; [email protected]

9. Women Enterprise Fund S.T. Wainaina - CEO NSSF Building, Eastern Wing, Block A, 14th FloorP.O. Box 17126-00100 NairobiTel: 2727980 Ext 2228/2306Fax: [email protected]

10. Stromme Microfi nance East Africa Ltd

Harriet Mulyanti - CEO Stromme Microfi nance East Africa LtdPlot 25, Block LRV 235,Folio 3 Bukoto StreetP.O. Box 27200Kampla, UgandaTel: 0414-532842Fax:0414-532992E-Mail: [email protected]

AMFI members as at August 20th 2013


DEPOSIT TAKING MICROFINANCE INSTITUTIONS

11. Kenya Women Finance Trust-DTM

Mwangi Githaiga - MD2715334/5 Isabella Nyambura

Upperhill, Kiambere RoadP.O BOX 4179-00506 NAIROBI.Tel : 2715333/2470272/2470273/2470274/2470275 [email protected]; [email protected]

12. Rafi ki Deposit taking Microfi nance Ltd

Daniel Mavindu-CEOContact PersonGeorge Mbira

Elroy Plaza, Tom Mboya Street,P.O. Box 66049 00800 NairobiTel:2774000/4454803/4/6/8Cell: 0736 432025/0722 206917gmbira@rafi ki.co.ke;dmavindu@rafi ki.co.ke

13. Faulu Kenya DTM John Mwara - CEOCaroline Muteithia – Business Manager &personal assistant

Ngong Road, Ngong laneP.O BOX 60240-00200 NAIROBI Tel: 3877290/3872184/4Fax:3867504/[email protected]@faulukenya.com

14. SMEP DTM Phyllis Mbungu- CEO Kirichwa Road, KilimaniP.O BOX 64063 NAIROBITel:3870162/3861927Fax:[email protected]@smep.co.ke

15. Remu DTM Ltd Lydia Kibaara – General Manager Finance House, 14th Floor, Loita streetP.O. Box 20833-00100 NairobiTel : 020-2214483/2215387/8/9Cell : 0716 [email protected]

16. Uwezo DTM Ltd Henry N. MutahiGeneral ManagerContact person – Isabel Mwangi

Park Plaza, Ground Floor, Moktah Daddah StreetP.O. Box 1654-00100 GPO NairobiTel : 2212917/9Cell : 0720 350800E-mail :[email protected]; [email protected]

17. Century DTM Ltd Pauline W. Githungu - CEO New Pumwani RoadK K Plaza, GikombaCell : 0770230570-Head Offi ce OR 0722168721 ; 0733155652Tel : 3741450Email : [email protected]@century.co.ke

18. Sumac Credit DTM Ltd Duncan MwanikiCEO

Consolidating Bank Building, Koinange Street, 2nd FloorP.O. Box 11687-00100NairobiTel: 020 2210440/2212587Fax: 020 2210430Cell Phone: 0725 223 499E-mail: [email protected] [email protected]

19. U&I Deposit Taking Microfi nance Ltd

P. Gitau – Acting CEO 1st Floor,Asili ComplexRiver Road/Latema Road JunctionOpposite Kampala CoachTel: 020 2367388 Cell: 0713 -112791E-mail: info@uni-microfi nance.co.kepgitau@uni-microfi nance.co.ke

RETAIL MFIs

20. Blue Limited Phillip Muturi Mwangi CEO

Chester House-Koinange StreetP.O BOX 27749-00100 NAIROBITel: 3599489/0717111792Fax : 24405493 [email protected]@blueltd.co.ke



21. K-rep Development Agency

Dora Waruiru – Acting MD K-Rep Development Agency Ltd K-Rep Centre| 7th Flr. Wood Av. Kilimani

P.O. Box Box 10528 – 00100, Nairobi.

+254 39 06 787

+254 711 058 787

+254 732 158 [email protected]

22. Eclof Kenya Mary Munyiri - CEO Chiromo, Royal Offi ces, Mogotio RoadP.O BOX 34889 NAIROBITel: 254-020-4453947,4453948Cell: 0721344699Fax: 254-020-4454006Email: [email protected] [email protected] [email protected]

23. KADET Fidel OkillahFinance & Adminstration Director (Acting CEO)

Capital Hill, Cathedral RoadCommunityP.O BOX 1676-00200 NAIROBIMobile: 0712-233 333Landline: +254-020-2731954/2731987fi [email protected]

24. BIMAS Patrick Gathondu-CEO Bimas ComplexP.O BOX 2299 EMBUTel: 068-31645Fax: [email protected]

25. SISDO Simon Maina- CEO Ngong Road, Ngong laneP.O BOX 76622-00508 NAIROBITel : 3870280Fax: [email protected]

26. Micro Africa Ltd James Mugambi – Executive Director Micro Africa LtdCharles Njoroge – CEO Microkenya

P.O BOX 52926 NAIROBITel: 2727373/Fax: [email protected]/ [email protected]

27. Opportunity Kenya Lydia Njoroge-CEOContact person: Geoffrey Thige-COO

Geomaps Centre-Matumbata rd Upper HillP.O BOX 19497-00202 NairobiTel: 2720159/69Fax: 27201730722205171/[email protected]@opportunitykenya.com

28. Yehu Microfi nance Trust Adet N. Kachi-CEO Buxton, Tom Mboya StreetP.O BOX 82120 NAIROBITel: [email protected] @gmail.com

29. Fusion Capital Ltd Luke Kinoti-CEOPA- Ruth Macharia

ACK Garden house, Wing A, Ground Floor, 1st Ngong Avenue, Community next to ardhi house.Tel: 2710149/53/55Cell: 0727287994/0733918776Email: [email protected]@fusiongroupafrica.com

30. Canyon Rural Credit Ltd Contact person: Isaac Nteere Studio Hse,3rd fl oorP.O. box 46532-00100 Nairobi.Tel: 2043407/2725024/[email protected]; [email protected]



31. One Africa Capital Ltd Michael Karanja Koinange Street-Ratansi Educational Trust Building, 2nd FloorP.O. Box 74093-00200Cell: 0726376293Fax: 020- 2210260 oneafrica.microfi [email protected]

32. Jitegemea Credit Scheme

Francis Kihiko - CEO Jogoo Road, KCB buildingP.O BOX 46514, NAIROBITel: 535866/[email protected]

33. AAR Credit Services John Kariuki – MDMargaret Njoroge – Finance Director

Methodist Ministries Centre, 1st FloorOloitokitok RoadP.O BOX 41766 GPOTel: 0722425040; 0736425040Email: [email protected]

34. ADOK TIMO Robert George Jura- CEO Sifa House, Ground Floor, Mission Rd.Off Kakamega Rd. Opposite Kibuye Market. KISUMU.Tel: 057 2025570P.O. Box 3650-40100Email: [email protected]

35. Pamoja Women Development Programme

Mary Muthoni ChegeCEO

Kikinga House, Kiambu TownP.O. Box 2472 – 00100 Nairobi.Tel: 066 – 22205Fax: 055 22455Mobile: 0721 756567/ 0721 526436E-mail: [email protected]

36. Juhudi Kilimo Co.Ltd Nat Robinson - CEO The Priory Place, 2nd Floor Argwings Kodhek RoadP.O. Box 25441-00100NairobiTel : +254 715 446614E-mail : [email protected]

37. Musoni Kenya Ltd Stanley Munyao - CEO

Contact person – Anne Mwasi- Finance

Cape Offi ce ParkAlong Ring Road Kilimani, Opposite Yaya CentreP.O. Box 25351-00100Nairobi.Offi ce: +254 (0) 202609355 E-mail: [email protected]@musoni.eu

38. Molyn Credit Ltd Lydia N. Anyangu - CEO Bruce House 9th Floor Standard StreetP.O. Box 10144-00100 NairobiTel : 310726Email : [email protected] / [email protected]

39. Renewable Energy Technology Assistance Programme(RETAP)

Charles Gitundu - CEO Waumini Hse, Westlands 1st FloorP.O. Box 28201-00200 NairobiTel : 4454306/2033867/3002344E-mail : [email protected]/ [email protected]

40. Rupia Ltd Mildred Wafula View Park Towers, 10th FloorP.O. Box 2987-00200 NairobiTel : 2251389Email : [email protected]

41. Taifa Options Microfi nance

Francis Macharia Mwangi - CEOContact Person – Rawlings Thuo

Finance House, Kenyatta HighwayP.O. Box 727, RuiruTel : 067-5855169/0725-315978/0724-705854E-mail : [email protected]@yahoo.com

42. Select Management Services Ltd

Paul Kihiu - CEO Kenya Re towers, off Ragati RoadP.O. Box 27639,00506Nairobi.Tel: 2777500/1Fax: [email protected]



43. Greenland Fedha Ltd Anne Gathuku-MFI manager KTDA, KTDA farmers buildingP.O. Box 30213-00100Nairobi.Tel: 32277000-2/221441-4Fax:[email protected]@yahoo.com

44. Youth Initiatives – Kenya (YIKE)

Benedict Kariuki-coordinator Youth Desk

Kariobangi North, Sanoda Hse, 2nd FlrP.O. Box 50622-00200, City Square, NairobiTel : 020 2303065Cell : 0725 362382Email : [email protected]

45. Platinum Credit Limited Ignatius ObaraFinance Director

2nd fl oor, union towers, moi avenueP.O. Box 73304-00200 NairobiTel: 2247950/2210109/2210105Mobile: 0722200480/[email protected]

46. Ngao Credit Ltd John Mwenja Ngumba – CEOEvelyn Murungi – Operations Manager

2nd Floor NHIF Bldg. Community P.O. Box 60776-00200 NairobiTel: 2720196/7Cell: 0723283947Email: [email protected] [email protected]

47. Indo Africa Finance Leon .M .Ndubai – CEO

Maya Mitrovic – Managing Director

Museum Hill Centre 3rd Floor, Museum Hill RoadP.O. Box 39435-00623 Nairobi – KenyaTel: 020-2692965/6Cell: 0733 – 200030 OR 0717-399181Email: info@indoafricafi nance.co.ke

48. Springboard Capital Wilson K. Karanja - CEO Kensia House along Muranga road, Opposite Kobil Petrol Station 1st Floor, suite no.15P.O. Box 23720-00100, Nairobi.Tel: 020 2319430Cell: 0722818921Email: [email protected]

49. Mini Savings & Loans Ltd Jeremiah M. Mwaura - Manager Highway Building, Githunguri Town (Near Githunguri Post Offi ce)P.O. Box 874-00216, Githunguri, KiambuTel: 020 2013292Cell: 0721953290Email: [email protected]

50. KEEF-Kenya Entrepreneurship Empowerment Foundation

Daniel K. Kariuki- CEO Mapa House 3rd Floor Kiambu RoadP.O. Box 648 KiambuTel: 020 3535617/ 020 2046423Cell: 0722 440419Email: [email protected]

51 Women Enterprise Solutions

Juster Waweru – CEO/MD Development House, Moi AvenueP.O. Box [email protected]: 020 2217508Cell: 0723 714498

52. Focus Capital Limited George Ngugi Karungo - Director Donholm Mina CentreP.O. Box [email protected]: 0705-693555

53. Samchi Credit Limited Kevin Mutiso – Executive Director

Contact person: Martin Gikera

Parklands PlazaP.O. Box 16982-00620Nairobi.Tel: 020521178 / 0708 777770Email: [email protected]@samchicredit.co.ke



54. Fountain Credit Services Ltd

Miriam GachauGeorge Kariuki

Ngong Road , near Kobil Petrol StationP.O. Box 72367-00200 Nairobi.Tel: 020 2501812Cell: 0715-530042; [email protected]@fep-group.com

55. Milango Financial Services

Johnson Kithendu - MD Rozina Building, Moi Avenue StreetP.O. Box 99637-80107, MombasaTel: (041) 2009222/0717177056e-mail: [email protected]

56. Nationwide Credit Kenya Ltd

Mathara Mwangi – DirectorFrancis Gitau Ngure - Treasurer

Trishul Towers, 1st FloorNear Globe Roundabout Next to Paramount PlazaP.O. Box 41873-00100Nairobi.e-mail: [email protected]: 254 (020)3744584Cell: 0725-702780/0734-209844

57. Fort Credit Limited Simon Kimani KomuDirector

Equity Plaza (Thika) 2nd FloorP.O. Box 6685-001000 ThikaCell Phone: 0725 353555 / 0725 593997Email: [email protected]

SACCOS

58. Unaitas Sacco Society ltd. formerelyMuramati Sacco Society Ltd

Tony Mwangi – CEOContact person – Mercy Njoroge (Microfi nance Coordinator)

Muramati Building, hospital road, MurangaP.O. Box 1145-10200, Muranga.Tel: 060 2030273/2030882Fax: 060 2030058e-mail: [email protected]@yahoo.com

INSURANCE COMPANIES

59 CIC Insurance Nelson KuriaMDContact PersonDavid Ronoh

CIC Plaza, Mara RoadP.O Box 59485-00200,NAIROBI.Tel:2823000Fax: 2823333Email: [email protected]

60. AIG Kenya Insurance Co. Ltd

Walter OratoAssistant general Manager, Accident and Health Contact person: Carolyne Ayiro; Manager Alternative distribution channels

AIG House, Eden Square Complex, Chiromo RoadP.O Box 49460-00100,Nairobi.Tel: 020-3676901/3751800Fax: 020-3676001-2Cell : 0723 600 500Email: [email protected]

61. Microensure Advisory Services

Kate Waiganjo – Country Manager Microensure - Kenya

Hughes building, Kenyatta avenue, 8th fl oorP.O. Box 13383-00100, Nairobi.Tel: 2221074/5/6/7Email: [email protected]

DEVELOPMENT INSTITUTIONS

62 Swiss Contact John Njoroge – Project Manager

Veronique Su - Regional Program Director Financial Services

P.O. Box 47996 - 00100, Nairobi. Kenya6th Floor , Victoria Plaza11 Parklands Road , Westlands , Tel : +254 - 20 374 3927 or + 254 - 20 374 4042

[email protected] [email protected]@swisscontact.co.ke


PLATINUM INSTITUTION

ROSALID NJERI WAWERU RAFIKI DTM

SAMUEL NJOROGE NGUGI MUSONI

JAMES AMWARI REMU DTM

PETER MUTISO WAMBUA REMU DTM

Gabriel Ndimba OPPORTUNITY KENYA

AMFI-K wishes to congratulate the 2012 CMA awardees for the exemplary achievement in promoting the microfi nance agenda in Kenya.

GOLD

MARGARET WAIRIMU KIMANI CENTURY DTM

GEORGE ORUWA OUMA TAIFA OPTION

MIRIAM WAWIRA NJERU INDO AFRICA

SIVI MUSYOKA MUINDE SELECT KENYA

ROSALID NJERI WAWERU RAFIKI DTM

SILVER

CHRISTINE MALINDA KREP BANK

ELIUD ELIAKIM MUSONI

PATRICK GICHOGO MACHARIA CENTURY DTM

BRONZE

GLADYS AKOTH OTIENO MUSONI

ROSELINE TATU NZEWA YEHU

DAVID KIPRUTO JUHUDI KILIMO

2013 Annual Report Kenya - MicroFinanza · PDF fileAMFI Kenya and MicroFinanza Rating are...

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