Status update — September 22, 2016
In December 2014, VisionFund Kenya, looking to enter into a new geographical region called Kisii, opened a new branch with a local partner that had grassroots connections in the area. The product was a simple loan to purchase a cow, and this helped VisionFund Kenya grow their customer numbers. However, challenges developed with the local partner and VisionFund Kenya experienced major challenges in collecting on these loans. While VisionFund Kenya embarked on concerted efforts to collect repayments, and has since stopped disbursements in the area, their efforts were not successful, and as a result, all their outstanding loans from the Kisii region were defaulted. VisionFund Kenya has been transparent and collaborative with Kiva through this process and we plan to continue to allow them to raise funds for loans in those areas of Kenya where their lending operations are strong.
Status update — March 11, 2016
VisionFund Kenya is currently experiencing high delinquency which is the result of an expansion into a new geographical region of Kisii (Western Kenya). In December 2014 VFKenya rolled out this project to offer simple, standard loans to borrowers in order to purchase cows, in collaboration with a partner called RPM that had grass root connections in the area. This project allowed VFKenya to expand quickly and grow their customer base by 15K clients in a 6 month period. But being in a new area to them, they started experiencing major challenges with collection of the loans in July 2015.
As a stop gap measure they immediately stopped further disbursements, effective August 2015, and consequently opened a physical office in a place called Nyakoe in Kisii. They’re now focusing all their efforts on collection and are hopeful that they will be able to recover substantial amounts of the outstanding loans. VFKenya continues to fundraise on Kiva and to remit their loan repayments as they collect.
VisionFund Kenya was established by World Vision Kenya in 2000 to provide effective credit inter-mediation and economic empowerment through business support for remote communities. In the past eight years of operations, we have been able to steadily develop a dominant niche as the preferred rural financier, alongside developing a portfolio that demonstrates the sustainability of rural finance. VisionFund Kenya has entered into partnerships that have allowed the MFI to develop unique and contextualized financial products which are marketed in all of VisionFund Kenya’s 54 Offices countrywide.
VisionFund Kenya Legal Standing
VisionFund Kenya is registered as a liability limited company under the Companies Act (Cap 486) Laws of Kenya, with all the shares held by the World Vision Kenya. It operates as a non regulated micro finance institution and as a member of the Association of Micro Finance Instructions in Kenya (AMFI) It’s Memorandum and Articles of Association required that no dividends are to be declared and that all the surpluses are to be ploughed back to the company for the furtherance of its purpose, ideals and objectives.
VisionFund Kenya Statements of Belief
Our Vision: Our vision for every child, life in all its fullness; Our prayer for every heart, the will to make it so.
Our Mission: To improve the lives of children living in poverty and unlock potential for communities to thrive by empowering women and their families through small loans and financial services.
Our Values for Success
We are Christian
VisionFund Kenya is founded on Christian principles and the teachings of Jesus Christ as recorded in the Holy Bible.
We are Committed to Rural Financing
We are called to serve by making finances accessible to rural communities; to relieve their suffering and promote the transformation of their condition of life by offering financial products that economically empower the communities we work with.
We Value People
We act in ways that respect the dignity, uniqueness and intrinsic worth of every customer and communities we serve, the donors, our staff and their families, boards and business partners. We celebrate the richness of diversity in human personality, culture and contribution.
We are Stewards
We are faithful to the purpose for which the resources (from donors and customers) are given, and manage them in a manner that brings maximum benefit to the rural and urban rural communities that we serve.
We are Partners
We are partners of the World Vision Micro Enterprise Development Program (MED), a part of an international World Vision Partnership that transcends legal, structural and cultural boundaries. We are partners with the rural and urban rural communities that we serve and with donors and financial institutions. We pursue relationships with the Government, investors, and communities around us, our staff and desire mutual participation.
We are Responsive
We are responsive to the deep-seated and often complex economic deprivation calls for sustainable and long-term economic empowerment. We maintain the commitments necessary for this to occur. We are responsive to new and unusual opportunities to meet customer demands.
VisionFund Kenya Lending Methodologies
VisionFund Kenya uses the group-based methodology for credit lending. This is not only cost effective but is also a prerequisite to effective outreach and rural penetration. However individual lending products are being developed and piloted commensurate with the dynamic needs of its target clientele.
VisionFund Kenya Product Mix
VisionFund Kenya has developed market driven loan products that are tailored to suit our client needs across the country. These products are categorized as follows;
1. Business Loans
a) Business capital loans (Mkopo Biashara) - Loans for the enterprising community in both rural and urban areas.
b) Business start up loans – Loans for especially the economically disempowered community members who have challenges meeting the basic requirements of accessing a standard business loans.
c) Business asset acquisition loans (Jenga Mali) - Loans to VisionFund Kenya customers to acquire assets needed in their businesses.
2. Consumer loans
a) School fees loans (Somesha Loan) - Loans for VisionFund Kenya clients to meet school fees needs for their children.
b) Water tanks for Community financing (Maji Kwa Jamii) - loans for acquisition of plastic water tanks to enhance availability of safe water within the communities.
3. General Agri-business loans
a) Agricultural loan (Mkopo Shambani) – seasonal crop credit for farmers and entrepreneurs trading in agricultural produce.
4. Non – Financial services
a) Micro-Health Insurance (Uzima Health Insurance cover) - a package to enable customers and families of World Vision registered children to access quality health care services. This is in partnership with CIC insurance and National Hospital Insurance Fund (NHIF).
b) Credit with Education – a value added service availed to VisionFund Kenya clients within the groups on HIV & AIDS, Environment, and health and Hygiene education in partnership with World Vision Kenya programs.
Repayment Performance on Kiva
|This Field Partner||All Kiva Partners|
|Start Date On Kiva||May 29, 2009||Oct 12, 2005|
|Amount of raised Inactive loans||$0||$593,750|
|Number of raised Inactive loans||0||270|
|Amount of Paying Back Loans||$418,150||$140,766,350|
|Number of Paying Back Loans||1,380||171,616|
|Amount of Ended Loans||$10,753,975||$783,169,200|
|Number of Ended Loans||25,728||980,000|
|Amount in Arrears||$15,165||$7,560,444|
|Number of Loans Delinquent||309||20,128|
|Amount of Ended Loans Defaulted||$394,703||$10,717,799|
|Number of Ended Loans Defaulted||2,856||30,602|
|Currency Exchange Loss Rate||0.09%||0.46%|
|Amount of Currency Exchange Loss||$10,154||$4,210,314|
|Amount of Refunded Loans||$69,750||$5,840,725|
|Number of Refunded Loans||168||5,906|
Loan Characteristics On Kiva
|This Field Partner||All Kiva Partners|
|Loans to Women Borrowers||54.08%||75.11%|
|Average Loan Size||$412||$402|
|Average Individual Loan Size||$412||$635|
|Average Group Loan Size||$708||$1,781|
|Average number of borrowers per group||3||7.8|
|Average GDP per capita (PPP) in local country||$1,800||$5,908|
|Average Loan Size / GDP per capita (PPP)||22.89%||6.81%|
|Average Time to Fund a Loan||6.92 days||6.96 days|
|Average Dollars Raised Per Day Per Loan||$59.55||$57.80|
|Average Loan Term||9.44 months||11.1 months|
Journaling Performance on Kiva
|This Field Partner||All Kiva Partners|
|Average Number of Comments Per Journal||0.01||0.05|
|Average Number of Recommendations Per Journal||0.04||1.20|
Borrowing Cost Comparison (based on 2014 data)
|This Field Partner||Median for MFI's in Country||All Kiva Partners|
|Average Cost to Borrower||40% PY||36.00% PY||26.15% PY|
|Profitability (return on assets)||-1.7%||0.5%||-0.05%|
|Average Loan Size (% of per capita income)||34.90%||56.00%||17.77%|
Country Fast Facts
- Official Language:
- English (official), Kiswahili (official)
- Avg Annual Income:
- Labor Force:
- agriculture: 75%, industry and services: 25%
- Population Below Poverty Line:
- Literacy Rate:
- Infant Mortality Rate (per 1000):
- 40.71 deaths
- Life Expectancy:
- 63.52 years
Field Partner StaffMarion Aduda
Dorice Lucy Anyango
willie owino onyango