Faulu Kenya
Kenya
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.
The information gathered during this process, together with the Kiva's new risk rating system and half-star support, has led us to revise Faulu Kenya's risk rating from 4 to 3 stars. The analysts have found that Faulu Kenya's risk variables, reviewed in the new risk rating model, were most representative of a 3-Star rating.
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.
Faulu Kenya has been informed of our analysts’ findings and their corresponding change in rating.
Original Partner Description
Faulu Kenya is a Deposit Taking Micro-Finance Company, with a mission to listen and empower Kenyans by providing relevant financial solutions. Faulu was founded in 1992 as a pilot programme of Food for the Hungry International (FHI), offering micro-enterprise lending in Nairobi’s Mathare slum. With a wide range of services and products (including farming loans), Faulu is proving to be one of the most innovative and fast-growing micro finance institutions in Kenya. Today, Faulu serves over 230,000 clients, with over 90 outlets throughout the country. Over the years Faulu has been able to help over 500,000 Kenyans with financial solutions transforming some from poverty into formidable business people.
In May 2009, Faulu made history by becoming the first Deposit Taking Microfinance to be licensed by the Central Bank of Kenya to accept customer deposits, enabling the company to better serve its clients. Faulu aspires to reach 1 million clients by 2011.
Vision: Giving Kenyans hope and a future.
Giving: Proactively seeking to enrich others through service.
Kenyans: Belief in our people’s potential, home-grown solutions for Kenyans by Kenyans.
Hope: Motivation for optimism.
A Future: Facilitate the fulfillment of Kenyans’ aspirations and dreams.
Mission: To listen and empower Kenyans by providing relevant financial solutions.
To Listen: Actively engaging others with a view to know them better hence meet their needs.
To Empower: Going beyond financial services by equipping with knowledge, skills and reaching out through Vision of Community.
Relevant Financial Solutions: Financial products and services that respond to customer needs.
Repayment Performance on Kiva
Repayment Performance on Kiva| This Field Partner | All Kiva Partners | ||
| Start Date On Kiva | Jul 18, 2009 | Oct 12, 2005 | |
|---|---|---|---|
| Total Loans | $2,892,775 | $426,910,600 | |
| Amount of Raised Inactive Loans | $0 | $238,825 | |
| Number Of Raised Inactive Loans | 0 | 207 | |
| Amount of Paying Back Loans | $481,775 | $94,248,000 | |
| Number Of Paying Back Loans | 749 | 101,761 | |
| Amount of Ended Loans | $2,411,000 | $332,423,775 | |
| Number Of Ended Loans | 5,056 | 435,945 | |
| Delinquency Rate | 0.04% | 1.89% | |
| Amount In Arrears | $102 | $1,148,081 | |
| Outstanding Portfolio | $227,683 | $60,666,465 | |
| Number of Loans Delinquent | 2 | 8,937 | |
| Default Rate | 0.74% | 0.97% | |
| Amount of Ended Loans Defaulted | $17,911 | $3,220,059 | |
| Amount of Ended Loans | $2,411,000 | $332,423,775 | |
| Number Of Ended Loans Defaulted | 94 | 9,823 | |
| Currency Exchange Loss Rate | 0.02% | 0.02% | |
| Amount of Currency Exchange Loss | $721 | $77,435 | |
| Refund Rate | 0.96% | 0.95% | |
| Amount of Refunded Loans | $27,675 | $4,068,925 | |
| Number Of Refunded Loans | 46 | 4,589 |
Loan Characteristics On Kiva
Loan Characteristics On Kiva| This Field Partner | All Kiva Partners | ||
| Loans To Women Entrepreneurs | 47.44% | 74.04% | |
|---|---|---|---|
| Average Loan Size | $499 | $407 | |
| Average Individual Loan Size | $499 | $646 | |
| Average Group Loan Size | $1,075 | $1,744 | |
| Average Number Of Entrepreneurs Per Group | 3 | 8 | |
| Average GDP Per Capita (PPP) in Local Country | $1,445 | $3,346 | |
| Average Loan Size / GDP Per Capita (PPP) | 34.53% | 12.17% | |
| Average Time To Fund A Loan | 6.73 days | 4.68 days | |
| Average Dollars Raised Per Day Per Loan | $74.17 | $87.00 | |
| Average Loan Term | 10.7 months | 9.61 months |
Journaling Performance on Kiva
Journaling Performance on Kiva| This Field Partner | All Kiva Partners | ||
| Total Journals | 2,124 | 203,872 | |
|---|---|---|---|
| Journaling Rate | 39.42% | 39.99% | |
| Average Number Of Comments Per Journal | 0.02 | 0.11 | |
| Average Number Of Recommendations Per Journal | 0.02 | 2.72 |
Borrowing Cost Comparison (based on 2011 data)
Borrowing Cost Comparison (based on 2011 data)| This Field Partner | Median for MFI Peers in Country | All Kiva Partners | ||
| Portfolio Yield | 36.90% | 32.90% | 35.13% | |
|---|---|---|---|---|
| Profitability (Return on Assets) | -0.5% | 0.2% | -0.15% | |
| Average Loan Size (% of Per Capita Income) | 54.80% | 51.50% | 47.07% |
Country Fast Facts
Country Fast Facts- Country:
- Kenya
- Capital:
- Nairobi
- Official Language:
- English (official), Kiswahili (official), numerous indigenous languages
- Population:
- 32,021,856
- Avg Annual Income:
- $1,445
- Labor Force:
- agriculture 75%
- Population Below Poverty Line:
- 50%
- Literacy Rate:
- 85.10%
- Infant Mortality Rate (per 1000):
- 62.62 deaths
- Life Expectancy:
- 44.94 years