MICROCAPITAL BRIEF: Kenya’s Rafiki Deposit-Taking Microfinance Institution Touts Microcredit for Youth

Rafiki Deposit Taking Microfinance (Rafiki DTM), a Kenyan microfinance institution (MFI) that aims to develop youth entrepreneurship, reportedly has announced that providing “affordable” loans to youth will alleviate high unemployment rates and improve local communities. According to a statement attributed to Rafiki DTM chief executive officer Daniel Mavindu, Rafiki DTM provides financial and business training in accordance with guidelines set by the Central Bank of Kenya in addition to providing microfinance services to groups of young entrepreneurs across the country.

Rafiki DTM currently has one branch each in Nairobi and Mumbasa and plans to open seven more branches in the Kenyan counties of Nairobi, Makueni, Kajiado, Nakuru, Kiambu and Meru in 2012. Rafiki DTM is a wholly owned subsidiary of Kenya’s Chase Bank, a private bank with 19 branches across the country and a network of automated teller machines (ATMs). Financial information is not available for Rafiki DTM or Chase Bank. The 28 Kenyan MFIs that reported 2010 data to the US-based nonprofit Microfinance Information Exchange (MIX) held an aggregate gross loan portfolio of USD 1.2 billion disbursed to approximately 1.2 million borrowers.

By Charlotte Newman, Research Associate

About Rafiki Deposit Taking Microfinance
Rafiki Deposit Taking Microfinance (Rafiki DTM) is a Kenya-based microfinance institution (MFI) that aims to empower youth to achieve social and economic freedom in Africa. Rafiki DTM was established in 2011 and has one branch each in Nairobi and Mumbasa. Products offered include savings, loans, banker’s checks and M-pesa retail and money transfer. The MFI plans to open seven more branches in 2012. Rafiki DTM is a wholly-owned subsidiary of Kenya’s Chase Bank, a private bank with 19 branches across the country and a network of automated teller machines (ATMs). Financial information is not available for Chase Bank. Rafiki DTM does not report to the US-based nonprofit Microfinance Information Exchange (MIX), and financial information on the organization is otherwise unavailable.

Sources and Additional Resources:

AllAfrica: “Kenya: Rafiki Calls for Youth Loans,” http://allafrica.com/stories/201203300125.html

MicroCapital.org story, April 9, 2012, “MICROCAPITAL BRIEF: Government of Khyber Pakhtunkhwa, Pakistan, Allocates $66m to Microfinance, Primarily for Youth, Artisans,” https://www.microcapital.org/microcapital-brief-government-of-khyber-pakhtunkhwa-pakistan-allocates-66m-to-microfinance-primarily-for-youth-artisans/

MicroCapital.org story, January 31, 2012, “MICROCAPITAL BRIEF: Lending Association for Young People Launches Microfinance Loan Fund in Mauritania to Stem Youth Unemployment,” https://www.microcapital.org/microcapital-brief-lending-association-for-young-people-launches-microfinance-loan-fund-in-mauritania-to-stem-youth-unemployment/

MicroCapital Universe Profile: Rafiki Deposit Taking Microfinance
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Rafiki+Deposit+Taking+Microfinance

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