Jamii Bora Bank of Kenya recently received KES 200 million (USD 2 million) in loans from the Kenya-based Women Enterprise Fund (WEF), a government agency that provides credit to support the start-up and expansion of women-owned businesses. Jamii Bora plans to use the loan to provide microcredit to female entrepreneurs at an eight percent interest rate.
The bank has reportedly been working to expand and further strengthen its credit pool, and it recently announced plans to raise another KES 200 million (USD 2 million) by offering a rights issue, an opportunity to purchase new shares in the bank at a fixed price, to shareholders in September 2012. Some of the major shareholders of the bank include Jamii Bora Scandinavian Group with a 25-percent stake, Messrs Asterisk with a 25-percent stake, Jamii Bora Africa Group with a 12-percent stake and Nodic Micro with a five-percent stake.
The 27 Kenyan MFIs reporting data to the US-based nonprofit Microfinance Information Exchange (MIX) held an aggregate loan portfolio of USD 1.2 billion disbursed to 1.2 million borrowers in 2010.
By Charlotte Newman, Research Associate
About Jamii Bora Bank
Jamii Bora Bank began in 1999 as a charitable trust and microfinance institution founded by 50 impoverished families in Nairobi. In 2010, Jamii Bora merged with City Finance Bank, a commercial bank established in 1985. With the merger, Jamii Bora became Jamii Bora Bank. The only branch is located in Nairobi, and there are approximately forty agents across the country. Major shareholders in the bank include Jamii Bora Scandinavian Group with a 25-percent stake, Messrs Asterisk with a 25-percent stake, Jamii Bora Africa Group with a 12-percent stake and Nordic Micro with a five percent stake. Financial information on Jamii Bora Bank is not available.
About Women Enterprise Fund
Women Enterprise Fund (WEF) is a semi-autonomous government agency in the Kenyan Ministry of Gender, Children & Social Development. WEF was established in August 2007 to provide accessible and affordable credit to support the start-up and expansion of women-owned enterprises. It also aims to provide services such as capacity building, marketing, promotion of linkages and infrastructure support. The Fund was awarded the Millennium Development Goals Award for outstanding achievement in promoting Gender Equality and Women Empowerment in 2011. WEF does not report financial data to the US-based non-profit Microfinance Information Exchange (MIX), and financial details on the organization are not otherwise available.
Sources and Additional Resources:
Business Daily: “Jamii Bora Bank Gets Sh200m Loan from Women’s Fund,” http://www.businessdailyafrica.com/Jamii+Bora+Bank+gets+Sh200m+loan+from+women+fund/-/539552/1329024/-/4dk0ahz/-/
MicroCapital.org story, May 18, 2009, “MICROCAPITAL STORY: Jamii Bora Trust, Microfinance Institution Based in Kenya, Reaches $38m in Loans; Backers Acquire City Finance Bank,” http://www.microcapital.org/microcapital-story-jamii-bora-trust-microfinance-institution-based-in-kenya-reaches-38m-in-loans-possible-acquisition-by-city-finance-bank/
MicroCapital.org story, December 9, 2008, “MICROCAPITAL STORY: Unitus, Inc. and Whole Planet Foundation Announce Partnership with Jamii Bora Trust, a Kenyan MFI,” http://www.microcapital.org/microcapital-story-unitus-inc-and-whole-planet-foundation-announce-partnership-with-jamii-bora-trust-a-kenyan-mfi/
MicroCapital Universe Profile: Jamii Bora Bank
MicroCapital Universe Profile: Women Enterprise Fund
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