Unitus, Inc., an international non-profit organization, and Yehu Microfinance Trust of Kenya announced that they have formed a new partnership. Yehu currently serves people in rural coastal Kenya and Unitus already works with two other MFIs in East Africa.
Yehu Microfinance Trust was founded in 1998 under the name Yehu Enterprise Support Services and was registered as a Trust on July 31, 2007. It began operations in the Kwale District, Coast Province of Kenya by organizing women’s groups and facilitating their savings. The first loan was distributed in 2000. The organization received a grade D in a rating report completed August 2007 by the rating agency Planet Rating. According to year end 2007 data as reported to the MIX Market, the microfinance information clearinghouse, Yehu has 6,147 active borrowers and a total loan portfolio of USD 450,450. In addition, it has total assets of USD 1.4 million, a return on assets of negative 13 percent and return on equity of negative 26 percent. The debt to equity ratio was 117.43 percent.
Consultative Group to Assist the Poor (CGAP) reported in 2008 that there had been recent growth in both lending and deposit taking across Africa from 2006 to 2007. Furthermore the report indicated that East Africa is showing rapid growth in relation to microfinance and the market is not yet saturated. Overall microfinance in Africa still faces low penetration rates and high operating costs.
Adet Kachi, CEO of Yehu, said, “Leveraging Unitus’s strategic consulting, high-performing network, and assistance in accessing grants and capital will enable us to grow aggressively and positively impact the lives of Kenyans who want to improve their livelihoods through entrepreneurial work.”
“We are thrilled to add Yehu as our twenty-fourth MFI partner and an important anchor to our expansion into East Africa,” said Ed Bland, President of Unitus. “Yehu, under the entrepreneurial leadership of Adet Kachi, is successfully serving low-income families in Kenya with branches in deep rural areas, low loan sizes, and innovative products and services that not only appeal to this population but increase their borrowing success.”
Unitus is a non-profit organization established in 2000 with offices in Seattle, Washington, Bangalore, India and Nairobi, Kenya. According to the company’s most recent annual report, as of December 2007 Unitus’ total assets were USD 15.1 million. They currently work with MFIs in seven countries, representing over 3.3 million clients with an aggregate gross loan portfolio of over USD 379 million. No more recent data is available. Unitus’ objective is to be a catalyst for the growth of small and mid-sized MFIs, allowing millions of poor people to improve their standard of living by gaining access to microfinance products and services.
By Sally Levy, Research Assistant
Additional Resources:
Planet Rating: Home
The MIX Market: Yehu Microfinance Trust Profile
Yehu Microfinance Trust: Home
Unitus Inc: Home, Annual Report 2007
Association of Microfinance Institutions of Kenya: Home
Consultative Group to Assist the Poor (CGAP): Africa Microfinance Analysis and Benchmarking Report, 2008
MicroCapital Story: “Africa Microfinance Analysis and Benchmarking Report, 2008,” by Jennifer Isern and Estelle Lahaye of CGAP, and Audrey Linthorst of MIX
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