Kraban Support Foundation (KSF)

Status Update — September 2, 2009

The partnership with Kraban Support Foundation (KSF) was paused in mid-2007 after Kiva discovered irregularities in the application of Kiva policies by the partner. Subsequently, KSF failed to make on-time repayments to Kiva lenders, and a new repayment plan was agreed upon. The repayment plan spanned from September 2007 to March 2009 with monthly installments. However, starting in November 2008, KSF became delinquent on an amount of $95,405. Kiva explored legal remedies in Ghana with regard to collection of these funds but determined that legal action to force repayment had a very low likelihood of success. Therefore, at year-end 2009 all of the remaining loans made by lenders to entrepreneurs served by this Lending Partner were fully refunded by Kiva and the partner account was set to closed.

Their mission is to develop innovative strategies and programs that enhance the capacity and productivity of vulnerable groups in their target deprived communities. Kraban Support Foundation\'s ultimate aim is to operate to enhance the access of small-scale entrepreneurs to sustainable financial services. The organization accomplishes this through strong and viable Cooperative Savings and Credit Societies (CSCS). The NGO facilitates savings-deposits and offers small-scale loans in addition to business development services in a cost effective and sustainable manner.

To provide lending, Kraban retails credit to clients in a linkage banking arrangement. However, the responsibility for loan appraisal and approval, entering into loan agreements, disbursement and loan recovery solely rest with their organization. Kraban sensitizes community-based groups through its Training, Education and Credit for Health (TEACH) methodology.