What to know about this Lending Partner
Kiva conducts regular, ongoing monitoring of all Lending Partners, but only posts status updates here in response to relevant, major changes at the partner.
Status update — March 20, 2017
Kiva's efforts to recover lender funds from Milango, including engaging a local lawyer, have proven unsuccessful at recovering the amount owed to Kiva. As a result, we don't believe future repayment is likely. All remaining loans have been defaulted and the partnership is now closed.
Status update — November 1, 2016
Since the last update, Kiva engaged a local lawyer in Kenya to follow up on Milango's owed payments to Kiva. The lawyer has written 2 demand letters to Milango, but has yet to have any success in recovering the current debt which still totals $183,050.33. Kiva, working together with the local lawyer, continues to make efforts to recover lender funds. We are now exploring a few other legal options and will keep lenders updated as more information becomes available.
Status update — May 10, 2016
Following the 12 month agreed upon grace period which concluded in December 2015, Kiva has tried unsuccessfully to recover Milango’s current debt, which totals $183,050.33. Kiva has made every effort possible to recover lender funds, however Milango has only 1 branch that's currently operational and their delinquency rate is currently reflected as 99.76%. Kiva is considering taking legal actions against Milango and will keep lenders updated as more information becomes available.
Status update — December 19, 2014
In the second half of 2014, Milango stopped remitting monthly loan repayments to Kiva. As of December 2014, Milango Financial Services has a total of $155,219.30 currently in arrears, out of a total outstanding portfolio of $178,331.89. As a result, its delinquency rate as expressed on the Kiva’s website is currently 82.40%.
At the request of Milango, Kiva has agreed to allow a twelve month grace period to allow the organization to recover from high portfolio delinquency and seek additional funding. During this period Milango will not be actively raising funds on the Kiva website. Kiva will continue to monitor the situation provide additional updates as they become available.
Status update — July 15, 2014
Milango is not currently raising funds on the Kiva platform. They have a total outstanding balance $204,160 owed to Kiva. Kiva and Milango have reached a restructure agreement with a new repayment plan. Milango will pay Kiva $12K per month until their balance is cleared. Milango continues to remit monthly payments on time to Kiva.
Partner description:
Milango Financial Services is a private limited company by shares registered in Kenya in the year 2009. Their head office is located in Mombasa town on Moi Avenue at Rozina house next to the famous Mombasa elephant tusks opposite Uhuru Gardens. The organization is currently serving 4 Counties of the larger coast region which has 6 Counties. Their desire is to have a presence in all of the counties and Extend operations in the neighboring lower Eastern Counties by year 2012.
Milango is particularly focused on women and the youth, as both categories are largely excluded in the mainstream financial markets and the form a large portion of the base of the pyramid. The organization sees itself as agents to spur acceleration of including these two demographics to the banked statistics and not just statistically but much more with tangible transformation both to their lives and their communities.