MICROCAPITAL.ORG STORY: Microfinance Institutions Jamii Bora Trust and Unitus Team Up to Build Eco-Friendly Town in Kenya

Jamii Bora Trust, a Kenya-based microfinance institution (MFI), has teamed up with Seattle, Washington-based non-profit MFI Unitus to launch an ecologically friendly town in Kenya, Africa. It is estimated that approximately 2, 500 families will purchase homes with microloans in Kaputei, a 160-hectare plot of land located 22 miles (36 kilometers) away from Kenya’s capital, Nairobi. In June 2009, 700 homes had been built, or in the process of being built. By the end of the project, 2, 000 homes are expected to be constructed.

To date, about 300 families, most of whom have come from the slums of Kibera, Nairobi have moved into their homes in Kaputei. Members of Jamii Bora Trust who wish to purchase homes in Kaputei receive loans with up to a 10% interest rate and up to 15 years’ repayment time. The monthly mortgage is USD 36, which is comparable to rents in the slum [1]. One woman who moved into a Kaputei house, Jane Ngoiri, paid USD 4, 500 for her two-bedroom house equipped with a kitchen, toilet and bath [2].

Jamii Bora Trust has been manufacturing building materials on site. Several new residents of Kaputei have used this as an opportunity to earn some money [3].

The project includes installation of solar panels to power the houses, and a water and sanitation system that recycles 70% of wastewater via man-made wetlands. Elijah Biahmah, an engineer at the University of Nairobi who has been designing the water and sanitation systems for Kaputei, explains “water is now safe-safe that is can be used for flushing the toilets. It can also be recycled and used for irrigating the crops around the homestead without any harmful effects whatsoever.”

Jamii Bora Trust is an MFI that was established in 1999 to assist poor individuals and families make a sustainable living for themselves. The MFI currently serves approximately 170, 000 members. It is headquartered in Nairobi, Kenya and operates in 62+ branches across the country. In May 2009, Jamii Bora Trust reached a total loan portfolio of USD 38.3 million. An average loan size from the MFI is USD 92 [4]. No further information regarding the financial performance of Jamii Bora Trust is publicly available, and the MFI does not report to the MIX market, the microfinance clearinghouse. [5].

Unitus is an international non-profit organization established in early 2000. The organization partners with “young, high-potential microfinance institutions, helping them build capacity, attract, and unite with the greater partner network to achieve rapid, sustainable growth.” Unitus works with partners throughout India and Southeast Asia, East Africa, Mexico, and South America [5]. As of December 2008, Unitus had total investments of USD 11, 750, 185, and total assets of USD 21, 380, 060 [6].

By: Diya Chopra, Research Associate

Bibliography:

[1] Voice of America
http://www.afminetwork.org/en/news/207/jamii-bora-unitus-build-eco-friendly-town-with-microfinance.html

[2] Seattle Times http://seattletimes.nwsource.com/html/businesstechnology/2009854705_kenya13.html

[3] Finance Markets
http://www.financemarkets.co.uk/2009/09/15/micro-finance-funds-africas-first-eco-town/

[4] MicroCapital

https://www.microcapital.org/microcapital-story-jamii-bora-trust-microfinance-institution-based-in-kenya-reaches-38m-in-loans-possible-acquisition-by-city-finance-bank/

[5] Unitus
http://www.unitus.com/news-and-information/latest-updates/jamii-bora-staff-member-profiled-in-mf-insights

[6] Unitus
http://tributes.unitus.com/AR/downloads/Unitus_AR_PDF_download.pdf

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