Status Update - December 6, 2013 

Kiva has decided to pause its partnership with Motorbank, resulting in this experimental partner no longer posting new loans to the Kiva website. This decision will be reviewed again after one year, and in the meantime, Kiva expects that Motorbank will continue to repay lenders. Over the course of our year-long partnership, Motorbank has raised nearly $72,000 in loans and helped 62 borrowers to purchase their own bikes. During this time, the organization always made payments to Kiva on time. We thank Motorbank for their collaboration and wish them all the best in their work.

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 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

    This Field Partner All Kiva Partners
  Start Date On Kiva Dec 19, 2012 Oct 12, 2005
Total Loans $71,900 $591,510,100
Amount of raised Inactive loans $0 $801,625
Number of raised Inactive loans 0 640
Amount of Paying Back Loans $71,900 $116,887,025
Number of Paying Back Loans 62 124,445
Amount of Ended Loans $0 $473,821,450
Number of Ended Loans 0 601,157
Delinquency Rate 62.66% 4.15%
Amount in Arrears $31,378 $3,134,116
Outstanding Portfolio $50,075 $75,521,492
Number of loanDelinquent 62 14,058
Default Rate 0.00% 1.13%
Amount of Ended Loans Defaulted $0 $5,346,749
Amount of Ended Loans $0 $473,821,450
Number of Ended Loans Defaulted 0 16,817
Currency Exchange Loss Rate 0.00% 0.09%
Amount of Currency Exchange Loss $0 $538,403
Refund Rate 0.00% 0.77%
Amount of Refunded Loans $0 $4,537,625
Number of Refunded Loans 0 5,064

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 17.53% 74.18%
Average Loan Size $1,160 $418
Average Individual Loan Size $1,160 $655
Average Group Loan Size $0 $1,828
Average number of borrowers per group 0 8
Average GDP per capita (PPP) in local country $1,800 $3,429
Average Loan Size / GDP per capita (PPP) 64.43% 12.20%
Average Time to Fund a Loan 2.79 days 5.6 days
Average Dollars Raised Per Day Per Loan $416.19 $74.70
  Average Loan Term 12.79 months 10.35 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 1 296,133
  Journaling Rate 2.94% 42.36%
  Average Number of Comments Per Journal 0.00 0.08
  Average Number of Recommendations Per Journal 0.00 1.87

Borrowing Cost Comparison (based on 2011 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 48% APR 36.00% PY 33.27% PY
  Profitability (return on assets) N/A 0.5% -1.45%
  Average Loan Size (% of per capita income) N/A 56.00% 40.88%

Country Fast Facts

Field Partner Staff

Mwiti Gatobu
Peter Kiura
Andrew Mbogori