Alice Njoki

Thank you for your loan. It has been disbursed to ALICE NJOKI by Ebony Foundation (Eb-F) in Kenya. We are excited to watch this business grow. Over the next 16 - 18 months, Ebony Foundation (Eb-F) will be collecting repayments from this entrepreneur and posting progress updates on the Kiva website.

Alice Njoki Gitau aged 46 years old and a married mother who hails from Ngorika Wendani group situated in the Great Rift Valley; Alice had a contagious smile, especially when she was narrating of how the loan has changed her life. She says previously she was unable to plant her produce on time because of lack of funds, and when the rainy season came it would find her land unprepared. This resulted to her land being less productive. But now she has been able to plant maize and beans, she is now weeding her farm. it will be ready in three months time to begin harvesting beans thereafter maize. She involved the group members to help her acquire the loan, for it has not been easy for her to take care of her kids and the family responsibilities. She cannot determine the market value of her products only till the time she harvests her crops especially beans. Alice is positive because this time she has planted enough for this season and she hasn’t had any complications in her farming work.

Alice has used her loan well to cut out the middleman and thereby increase her profits. She is currently farming 1.5 acres of her farmland. She grows maize and beans, staple crops of the Ngorika settlement. Her crops are in an advanced stage and all indications are that they will be ready for harvest ahead of schedule. She is expecting to harvest in December, about a month ahead of schedule. Alice thinks she can get a total yield of 30 bags. Previously, when she sold to the middlemen, known locally as brokers, she would receive only 700 Kenyan shillings (~ $10) per bag. However, she now employs one of her sons to transport her crops to the nearest urban area, Nakuru town. In the Nakuru markets Alice can command a price of 1000 shillings (~ $15) per bag. She does pay an additional 100 shillings per bag in transport fees though. The extra income she will be receiving will help her meet the cost of her children’s education. Currently she is paying 6000 shillings (~ $90) per child per term in school fees.

(Alice is pictured here with her group’s Ebony Foundation Business Development Officer, Henry.)

Dear Kiva lender,

As a recent Kiva blog post (http://www.kiva.org/about/inside) discussed, the situation unfolding in Kenya has disrupted the day-to-day operations of many of Kiva’s microfinance partners, like Ebony Foundation.

James Maina, Director of Ebony Foundation (EbF) (http://www.kiva.org/about/aboutPartner?id=25), has provided the update below for you. Due to the exceptional circumstances (including lack of reliable internet) where James is working in Kenya right now, Kiva is posting this update on his behalf.

Thank you,

Kiva Team

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Dear Kiva Lenders,

I wish to thank you for your continued concern and support during this very difficult moment in Kenya’s history. We have been a peaceful Country in a generally troubled region and people sort of took the peace for granted.

The country is now battered almost to a pulp and blood spilt with vengeance, senseless killings and wanton destruction. Markets, food stores and shops have been looted. Hospitals are dysfunctional and health centers incapacitated by riots and barricades. The violence, death and destruction witnessed in the Country for the last couple weeks has jolted the Nation into conscience and every body is now craving normalcy.

While peace is slowly returning to all affected parts of the Country, the impact of the riots has been devastating. Hundreds of people have been killed turning thousands of innocent children into helpless orphans and over one million people have been displaced, becoming internal refugees over night.

The impact of the riots is most felt in the micro and small business sector. Over 1 million small businesses were looted and or burnt down destroying the only source of income to millions of Kenyans. Most of the fighting and destruction occurred in slum areas in Nairobi, Mombasa, Nakuru and Kericho in Rift Valley. These regions are home to over 70% of Ebony Foundation’s clients and as you can imagine almost all of our clients in these regions have been affected by the riots. Only one region- (Mount Kenya) which is home to about 20% of EbF’s clients was spared the violence. The economy in this safe region is now getting stretched as the residents have to now house the displaced population.

We have recently completed auditing the riot’s impact on our clients and as of yesterday about 4,900 of our clients had been badly affected by the riots:

-- About 1,532 of our clients were displaced and both their homes and business premises burnt down. This population is currently housed in church compounds and police stations.

-- Another 2,479 clients had their business premises burnt down or looted leaving them with no source of income at all.

-- 833 clients had their homes looted or burnt down and about 56 clients are missing and feared dead or critically injured.

We arrived at these figures through a survey being administered at holding grounds, police stations, and through reliable reports from groups and community leaders. Our staff and local group officials have also been committed to conducting field assessments. I am sending a photo today which you may share with the lenders. The biggest tasks at the moment are to feed and house the displaced people, and to finance the reconstruction of the small businesses that were affected in order to enable the people to reclaim their source of income. In addition, Ebony Foundation is now helping other MFI’s audit their clients.

Eb-F has formed the following committees to address the above issues:

-- A humanitarian committee that is working with the International Red Cross to provide food, shelter and medical care to the victims.

-- A business reconstruction committee that is working with the affected clients to re finance and rebuild the small businesses that were looted and/or burnt down.

-- A compliance committee that is studying the legal and contractual aspects of the affected loans to arrive at the best policy action.

Thus, we ask for your continued patience as many loan repayments will be late, and it even may be impossible for some loans to be repaid in full at all. Thank you for your patience as we work hard to address all of these difficult issues, to serve our borrowers and help them recover, and to repay loans as quickly and as much as is possible in the coming months.

Sincerely,

James Maina

Executive Director

Ebony Foundation

Kenya

After continuing non-payment to Kiva, all active Ebony Foundation loans have now been defaulted. Kiva will continue to pursue recovery of funds on these loans and apply funds proportionally to lenders if and as funds are received. However, Kiva staff have judged the likelihood of recovery on these loans to be sufficiently low such as to update the loan status of these loans to “defaulted”.

For further details on this default, please see Ebony Foundation’s Field Partner page