September 11, 2011
 
As part of an ongoing effort to fully migrate risk ratings to our new and enhanced risk rating system, Kiva has conducted a re-assessment of the level of risk posed by this institution.
 
During this re-assessment, our analysts were able to gather updated operational and financial information about the institution, as well as speak with key members of the staff. 
 
Kiva's new risk rating system, which now includes half stars, has enabled us to display VisionFund Kenya's risk rating with a higher level of granularity. As a result, VisionFund Kenya's risk rating will now be displayed as 3.5 stars instead of 4 stars. 
 
We have prepared a blog post with more information on Kiva's new and enhanced risk rating system, along with a chart showing the relative magnitude of the overall changes for Kiva's portfolio.  To view that, please go here: http://www.kiva.org/updates/kiva/2011/09/07/kiva-risk-ratings-now-with-half-stars.html.
 
VisionFund Kenya has been informed of the change in the display of their rating on Kiva's website.
 
Original Partner Description
VisionFund Kenya was established by World Vision Kenya in 2000 to provide effective credit inter-mediation and economic empowerment through business support for remote communities. In the past eight years of operations, we have been able to steadily develop a dominant niche as the preferred rural financier, alongside developing a portfolio that demonstrates the sustainability of rural finance. VisionFund Kenya has entered into partnerships that have allowed the MFI to develop unique and contextualized financial products which are marketed in all of VisionFund Kenya’s 54 Offices countrywide.

VisionFund Kenya Legal Standing
VisionFund Kenya is registered as a liability limited company under the Companies Act (Cap 486) Laws of Kenya, with all the shares held by the World Vision Kenya. It operates as a non regulated micro finance institution and as a member of the Association of Micro Finance Instructions in Kenya (AMFI) It’s Memorandum and Articles of Association required that no dividends are to be declared and that all the surpluses are to be ploughed back to the company for the furtherance of its purpose, ideals and objectives.

VisionFund Kenya Statements of Belief
Our Vision: Our vision for every child, life in all its fullness; Our prayer for every heart, the will to make it so.

Our Mission: To improve the lives of children living in poverty and unlock potential for communities to thrive by empowering women and their families through small loans and financial services.  

Our Values for Success
We are Christian
VisionFund Kenya is founded on Christian principles and the teachings of Jesus Christ as recorded in the Holy Bible.

We are Committed to Rural Financing
We are called to serve by making finances accessible to rural communities; to relieve their suffering and promote the transformation of their condition of life by offering financial products that economically empower the communities we work with.

We Value People
We act in ways that respect the dignity, uniqueness and intrinsic worth of every customer and communities we serve, the donors, our staff and their families, boards and business partners. We celebrate the richness of diversity in human personality, culture and contribution.

We are Stewards
We are faithful to the purpose for which the resources (from donors and customers) are given, and manage them in a manner that brings maximum benefit to the rural and urban rural communities that we serve.

We are Partners
We are partners of the World Vision Micro Enterprise Development Program (MED), a part of an international World Vision Partnership that transcends legal, structural and cultural boundaries. We are partners with the rural and urban rural communities that we serve and with donors and financial institutions. We pursue relationships with the Government, investors, and communities around us, our staff and desire mutual participation.

We are Responsive
We are responsive to the deep-seated and often complex economic deprivation calls for sustainable and long-term economic empowerment. We maintain the commitments necessary for this to occur. We are responsive to new and unusual opportunities to meet customer demands.

VisionFund Kenya Lending Methodologies
VisionFund Kenya uses the group-based methodology for credit lending. This is not only cost effective but is also a prerequisite to effective outreach and rural penetration. However individual lending products are being developed and piloted commensurate with the dynamic needs of its target clientele.

VisionFund Kenya Product Mix
VisionFund Kenya has developed market driven loan products that are tailored to suit our client needs across the country. These products are categorized as follows;

1. Business Loans
a) Business capital loans (Mkopo Biashara) - Loans for the enterprising community in both rural and urban areas.
b) Business start up loans – Loans for especially the economically disempowered community members who have challenges meeting the basic requirements of accessing a standard business loans.
c) Business asset acquisition loans (Jenga Mali) - Loans to VisionFund Kenya customers to acquire assets needed in their businesses.
2. Consumer loans
a) School fees loans (Somesha Loan) - Loans for VisionFund Kenya clients to meet school fees needs for their children.
b) Water tanks for Community financing (Maji Kwa Jamii) - loans for acquisition of plastic water tanks to enhance availability of safe water within the communities.
3. General Agri-business loans
a) Agricultural loan (Mkopo Shambani) – seasonal crop credit for farmers and entrepreneurs trading in agricultural produce.
4. Non – Financial services
a) Micro-Health Insurance (Uzima Health Insurance cover) - a package to enable customers and families of World Vision registered children to access quality health care services. This is in partnership with CIC insurance and National Hospital Insurance Fund (NHIF).
b) Credit with Education – a value added service availed to VisionFund Kenya clients within the groups on HIV & AIDS, Environment, and health and Hygiene education in partnership with World Vision Kenya programs.

Kiva HelpRepayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva May 29, 2009 Oct 12, 2005
Total Loans $8,526,250 $538,432,075
Amount of Raised Inactive Loans $0 $319,600
Number Of Raised Inactive Loans 0 243
Amount of Paying Back Loans $1,611,100 $110,295,425
Number Of Paying Back Loans 2,848 113,938
Amount of Ended Loans $6,915,150 $427,817,050
Number Of Ended Loans 15,819 549,600
Delinquency Rate 1.25% 3.35%
Amount In Arrears $11,158 $2,392,132
Outstanding Portfolio $893,384 $71,413,577
Number of Loans Delinquent 124 10,630
Default Rate 0.60% 1.01%
Amount of Ended Loans Defaulted $41,248 $4,334,868
Amount of Ended Loans $6,915,150 $427,817,050
Number Of Ended Loans Defaulted 215 14,050
Currency Exchange Loss Rate 0.02% 0.06%
Amount of Currency Exchange Loss $2,053 $298,028
Refund Rate 0.59% 0.82%
Amount of Refunded Loans $50,250 $4,417,000
Number Of Refunded Loans 97 4,864

Kiva HelpLoan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans To Women Entrepreneurs 51.06% 74.09%
Average Loan Size $457 $417
Average Individual Loan Size $457 $656
Average Group Loan Size $708 $1,813
Average Number Of Entrepreneurs Per Group 3 8
Average GDP Per Capita (PPP) in Local Country $1,800 $3,463
Average Loan Size / GDP Per Capita (PPP) 25.39% 12.05%
Average Time To Fund A Loan 4.72 days 5.29 days
Average Dollars Raised Per Day Per Loan $96.75 $78.96
  Average Loan Term 8.61 months 10.05 months

Kiva HelpJournaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 3,167 268,567
  Journaling Rate 18.37% 42.09%
  Average Number Of Comments Per Journal 0.02 0.09
  Average Number Of Recommendations Per Journal 0.06 2.06

Kiva HelpBorrowing Cost Comparison (based on 2011 data)

    This Field Partner Median for MFI Peers in Country All Kiva Partners
  Portfolio Yield 31.20% 32.90% 34.93%
  Profitability (Return on Assets) -9.3% 0.2% -1.11%
  Average Loan Size (% of Per Capita Income) 34.90% 51.50% 42.70%

Kiva HelpCountry Fast Facts

Field Partner Staff

Marion Aduda
Margaret Anyembe
Mercy Chemutai
Dorothy Chepchieng
Mercy Chepkangor
Julie Ekessa
Stella Kaariah
Helen Kahenya
Phylis Kahura
Fredrick Karisa
Evans Kariuki
Grace Kariuki
Kenndy Kariuki
Agnes Katya
Nancy Kebut
Nancy Kebut
Gladys Kimani
Paul Kimani
hillary kimutai
Hilda Kingatua
Faith Kiptoo
Amos Komen
Monicah Kuria
Laurenter Lanke
Catherine Lengewa
Dorice Lucy Anyango
Deborah Maalafu
Esther Mararo
Lilian Masoni
Caroline Mbijiwe
Mildred Mboss
Miriam Miriam
Angela Mokua
Lydia Muasya
Peter Mugendi
Dadson Mugothi
Sheran Muhonja
Regina Muindi
Beatrice Munka
Josphine Mutai
Robai Mutali
Vincent Mutuku
purity mwamati
Hellen Mwangi
Angela Mwende
Lydiah Namayani
Dina Ndeda
William Nderitu
ronald ndiku
Joshua Ndisio
Jorum Ndungu
Justin Nthiani
Mike Ochieng
Nelson Odero
Ken Oketch
Fidel Okillah
Brenda Olenja
George Oloo
Julius Onganga
willie owino onyango
Fredrick Opiyo
esther orengo
Dorothy Osodo
Susan Otieno
Dickson Ouma
dorcas sein
Brenda Sekeita
Alice Syuki
Jematia Toroitich
Job Wafula
Grace Wambui
Lucy Wanjiku
David Warui