Motorbank Kenya
Kenya
Last updated December 5, 2012
Partner Description:
Motorbank Kenya is a microfinance institution that helps people purchase their own bikes. It’s the only social enterprise organization that specializes in hire purchase plans that enable its customers to acquire motorcycles and play a positive role in the community while enhancing their livelihoods.
Today, one of the main challenges facing the community health worker system in Kenya is transportation due to poor infrastructure and long distances to be covered in remote locations. Aiming to ease transportation challenges and help community health workers provide on-time sergvices, Motorbank developed a loan product called BodAfya.
This loan product targets two types of borrowers with slightly different terms:
(1) Community Health Workers (CHWs) who take out a motorcycle loan to spend 2 to 3 days per week in their community health work and the other days engaged in other motorcycle service activities to earn extra income. Motorbank offers CHWs an extended loan term (18 months) and lower deposit requirement to make the motorcycle affordable to them.
(2) Boda-boda (motorcycle taxi) drivers who take out a loan to purchase a motorcycle and commit to spending one day per week driving a CHW to his or her community health visits. Motorbank assigns each motorcycle taxi driver to a specific CHW for the purpose of offering free transportation for health outreach. The loan term for these motorcycle taxi drivers is 12 months, and the deposit is higher.
Activities covered by CHWs include patient visits, monitoring of ARVs and TB drug use and compliance, reproductive health consultations, mother-child health counseling, and leading community malaria control and hygiene health messages. The BodAfya loan product will go a long way toward enhancing and supporting community health outreach.
Kiva lenders’ funds are used to expand this loan product for both CHWs and motorcycle taxi drivers who commit to drive CHWs at least one day per week over the 18-month term of the loan. In addition, the funds will enable Motorbank to decrease the requested deposit amount and charge a lower interest rate on this particular loan product.
A motorcycle driver in Kenya with a passenger.
A unique lending approach
The BodAfya loan product is offered to CHWs and motorcycle taxi drivers who commit to providing transportation to expand community health outreach.
For CHWs, this loan allows them to reach more people during their community health visits, which they do 2 to 3 days per week. When not using the motorcycle for community outreach activities, CHWs will use the motorcycle in micro-business activities such as community taxi service, community courier service, and milk delivery service. The prospect of extra income from these activities is a big incentive to the CHWs, who are mostly young and at the beginning of their careers in the health sector.
For motorcycle taxi drivers, this loan product will commit them to driving a CHW one day per week. Once a day ride is completed -- normally after 6 to 8 hours -- the driver will have his or her individual job card stamped by the CHW supervisor, and the card will be sent to a Motorbank agent who will record the information and share it with the Motorbank office in Nairobi.
Partner Description:
Motorbank Kenya is a microfinance institution that helps people purchase their own bikes. It’s the only social enterprise organization that specializes in hire purchase plans that enable its customers to acquire motorcycles and play a positive role in the community while enhancing their livelihoods.
Today, one of the main challenges facing the community health worker system in Kenya is transportation due to poor infrastructure and long distances to be covered in remote locations. Aiming to ease transportation challenges and help community health workers provide on-time sergvices, Motorbank developed a loan product called BodAfya.
This loan product targets two types of borrowers with slightly different terms:
(1) Community Health Workers (CHWs) who take out a motorcycle loan to spend 2 to 3 days per week in their community health work and the other days engaged in other motorcycle service activities to earn extra income. Motorbank offers CHWs an extended loan term (18 months) and lower deposit requirement to make the motorcycle affordable to them.
(2) Boda-boda (motorcycle taxi) drivers who take out a loan to purchase a motorcycle and commit to spending one day per week driving a CHW to his or her community health visits. Motorbank assigns each motorcycle taxi driver to a specific CHW for the purpose of offering free transportation for health outreach. The loan term for these motorcycle taxi drivers is 12 months, and the deposit is higher.
Activities covered by CHWs include patient visits, monitoring of ARVs and TB drug use and compliance, reproductive health consultations, mother-child health counseling, and leading community malaria control and hygiene health messages. The BodAfya loan product will go a long way toward enhancing and supporting community health outreach.
Kiva lenders’ funds are used to expand this loan product for both CHWs and motorcycle taxi drivers who commit to drive CHWs at least one day per week over the 18-month term of the loan. In addition, the funds will enable Motorbank to decrease the requested deposit amount and charge a lower interest rate on this particular loan product.
A motorcycle driver in Kenya with a passenger.
A unique lending approach
The BodAfya loan product is offered to CHWs and motorcycle taxi drivers who commit to providing transportation to expand community health outreach.
For CHWs, this loan allows them to reach more people during their community health visits, which they do 2 to 3 days per week. When not using the motorcycle for community outreach activities, CHWs will use the motorcycle in micro-business activities such as community taxi service, community courier service, and milk delivery service. The prospect of extra income from these activities is a big incentive to the CHWs, who are mostly young and at the beginning of their careers in the health sector.
For motorcycle taxi drivers, this loan product will commit them to driving a CHW one day per week. Once a day ride is completed -- normally after 6 to 8 hours -- the driver will have his or her individual job card stamped by the CHW supervisor, and the card will be sent to a Motorbank agent who will record the information and share it with the Motorbank office in Nairobi.
Repayment Performance on Kiva
Repayment Performance on Kiva| This Field Partner | All Kiva Partners | ||
| Start Date On Kiva | Dec 19, 2012 | Oct 12, 2005 | |
|---|---|---|---|
| Total Loans | $30,075 | $426,651,775 | |
| Amount of Raised Inactive Loans | $7,225 | $238,975 | |
| Number Of Raised Inactive Loans | 11 | 213 | |
| Amount of Paying Back Loans | $22,850 | $94,149,725 | |
| Number Of Paying Back Loans | 19 | 101,646 | |
| Amount of Ended Loans | $0 | $332,263,075 | |
| Number Of Ended Loans | 0 | 435,701 | |
| Delinquency Rate | 0.00% | 1.91% | |
| Amount In Arrears | $0 | $1,156,960 | |
| Outstanding Portfolio | $18,451 | $60,497,022 | |
| Number of Loans Delinquent | 0 | 9,042 | |
| Default Rate | 0.00% | 0.97% | |
| Amount of Ended Loans Defaulted | $0 | $3,220,059 | |
| Amount of Ended Loans | $0 | $332,263,075 | |
| Number Of Ended Loans Defaulted | 0 | 9,823 | |
| Currency Exchange Loss Rate | 0.00% | 0.02% | |
| Amount of Currency Exchange Loss | $0 | $77,435 | |
| Refund Rate | 0.00% | 0.95% | |
| Amount of Refunded Loans | $0 | $4,068,925 | |
| Number Of Refunded Loans | 0 | 4,589 |
Loan Characteristics On Kiva
Loan Characteristics On Kiva| This Field Partner | All Kiva Partners | ||
| Loans To Women Entrepreneurs | 10.94% | 74.04% | |
|---|---|---|---|
| Average Loan Size | $1,003 | $407 | |
| Average Individual Loan Size | $1,003 | $646 | |
| Average Group Loan Size | $0 | $1,744 | |
| Average Number Of Entrepreneurs Per Group | 0 | 8 | |
| Average GDP Per Capita (PPP) in Local Country | $1,445 | $3,345 | |
| Average Loan Size / GDP Per Capita (PPP) | 69.38% | 12.17% | |
| Average Time To Fund A Loan | 0.6 days | 4.68 days | |
| Average Dollars Raised Per Day Per Loan | $1,676.59 | $86.95 | |
| Average Loan Term | 10.83 months | 9.61 months |
Journaling Performance on Kiva
Journaling Performance on Kiva| This Field Partner | All Kiva Partners | ||
| Total Journals | 1 | 203,769 | |
|---|---|---|---|
| Journaling Rate | 0.00% | 39.99% | |
| Average Number Of Comments Per Journal | 0.00 | 0.11 | |
| Average Number Of Recommendations Per Journal | 0.00 | 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 | N/A | N/A | 35.02% | |
|---|---|---|---|---|
| Profitability (Return on Assets) | N/A | N/A | -0.38% | |
| Average Loan Size (% of Per Capita Income) | N/A | 51.50% | 46.53% |
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
Field Partner Staff
Mwiti GatobuAndrew Mbogori