Ololailumtia 2 Group
Edward presently operates a diesel generator to power lights in his customers’ rooms. He only runs the generator for a few hours each evening and asks customers to either pay for generator fuel or use kerosene lanterns if they would like additional light. Customers sometimes complain and shorten their stay because of the lack of power. To provide more light, Edward would need to raise room charges to cover the fuel costs, which would scare away customers. Furthermore, the generator is unreliable and breaks often. To be repaired, it must be taken over three hours to the nearest large town. This takes Edward away from his business for over a day and causes him to lose a lot of income.
The solar micro-grid will provide Edward a constant and reliable power source to use for lighting and other energy services, such as phone charging and small TVs to attract more customers to his hotel. Edward will pre-pay for electricity in small bundles using his mobile phone. The solar system will require very little maintenance and a large battery bank ensures there will be plenty of power even on cloudy days. Edward will spend a lot less money for the micro-grid power than he was on diesel fuel and the frequent generator maintenance trips. He can then reinvest this money in his hotel or use it to pay school fees for his children. Furthermore, the solar system is far better for the environment and Edward’s health than the noisy, polluting diesel generator.
Aside from Edward, three other business owners in the village are also a part of the loan connecting to the grid: Patricia, Isaac, and John. They are all looking forward to having reliable power at an affordable rate which they will also use to grow their businesses. The micro-grid, will thus, spur economic activity in Ololailumtia and provide better and cheaper options for more residents to use energy to improve their lives.
More information about this loan
PowerGen is a Nairobi-based renewable energy enterprise, founded in 2013, that aims to improve access to electricity in rural regions of East Africa by providing communities with micro-grids. PowerGen seeks not only to reduce dependence on inefficient, expensive and harmful forms of energy (e.g. kerosene) but also to unlock the potential contained within these communities by supplying them with enough power to drive forward economic growth.
By partnering with Kiva, PowerGen will be able to provide micro-grids to communities on credit, thereby vastly increasing the organization’s impact. Kiva lenders’ funds will help PowerGen to provide in-kind micro-grid loans, which will be repaid over the loan term with the 2.7 cent fee that users pay per kilowatt hour. A 5-10% loan administration fee will be applied over the loan term.
This is a Group Loan
In a group loan, each member of the group receives an individual loan but is part of a larger group of individuals. The group is there to provide support to the members and to provide a system of peer pressure, but groups may or may not be formally bound by a group guarantee. In cases where there is a group guarantee, members of the group are responsible for paying back the loans of their fellow group members in the case of delinquency or default.
Kiva's Field Partners typically feature one borrower from a group. The loan description, sector, and other attributes for a group loan profile are determined by the featured borrower's loan. The other members of the group are not required to use their loans for the same purpose.
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This loan has been fully funded!