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

    This Field Partner All Kiva Partners
  Start Date On Kiva Jul 18, 2009 Oct 12, 2005
Total Loans $2,892,775 $573,010,825
Amount of raised Inactive loans $0 $311,275
Number of raised Inactive loans 0 306
Amount of Paying Back Loans $21,125 $117,333,875
Number of Paying Back Loans 20 122,956
Amount of Ended Loans $2,871,650 $455,365,675
Number of Ended Loans 5,785 580,312
Delinquency Rate 0.00% 3.62%
Amount in Arrears $0 $2,773,489
Outstanding Portfolio $3,503 $76,542,883
Number of loanDelinquent 0 11,589
Default Rate 0.62% 1.08%
Amount of Ended Loans Defaulted $17,911 $4,927,943
Amount of Ended Loans $2,871,650 $455,365,675
Number of Ended Loans Defaulted 94 15,212
Currency Exchange Loss Rate 0.02% 0.07%
Amount of Currency Exchange Loss $721 $406,266
Refund Rate 0.96% 0.78%
Amount of Refunded Loans $27,675 $4,479,350
Number of Refunded Loans 46 5,008

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 47.44% 74.23%
Average Loan Size $499 $418
Average Individual Loan Size $499 $656
Average Group Loan Size $1,075 $1,823
Average number of borrowers per group 3 8
Average GDP per capita (PPP) in local country $1,800 $3,442
Average Loan Size / GDP per capita (PPP) 27.72% 12.16%
Average Time to Fund a Loan 6.73 days 5.5 days
Average Dollars Raised Per Day Per Loan $74.17 $76.14
  Average Loan Term 10.7 months 10.24 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 2,130 286,081
  Journaling Rate 34.46% 42.44%
  Average Number of Comments Per Journal 0.02 0.08
  Average Number of Recommendations Per Journal 0.02 1.94

Borrowing Cost Comparison (based on 2011 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Portfolio Yield 36.00% 36.00% 33.65%
  Profitability (return on assets) -0.5% 0.5% -1.29%
  Average Loan Size (% of per capita income) 54.80% 56.00% 41.84%

Country Fast Facts

Field Partner Staff

Nelius Mwai
mercy olero