KEEF from Kenya

KEEF was established in 2004 with an aim of empowering local communities by supporting initiatives that promote women and youth through micro credit to establish sustainable micro enterprises and small scale farmers in rural and semi urban areas.

KEEF serves clients mainly in rural and semi urban areas through two main programs;
Women Entrepreneurship Empowerment Program and Youth Village Development Initiative focused on empowering women and youth in rural areas with limited access to financial services. More than 80% of KEEF’s clients live in rural areas. KEEF lends to individuals in solidarity groups.

During the past 3 years KEEF has tripled its number of clients every year.

A large part of KEEF’s success is attributable to its unique lending model and product offerings. KEEF clients belong to solidarity groups that are modeled on traditional savings clubs, known as “merry go rounds” in Kenya. In these clubs members each contribute money each month and in rotation each month one member takes all the money in the “pot.” KEEF has modified the traditional savings club with the addition of credit. Instead of distributing all money collected each month to one person, the monthly pot serves as a revolving loan fund. At monthly group meetings all members are required to contribute a savings payment to the common pool as well as any repayments of outstanding loans.

When new groups are formed, or a new member joins a group, they must make regular contributions to accumulate savings before they are entitled to take a loan. The money thus collected is then immediately redistributed to the members as new loans. The capital to fund loans thus comes, in the first instance, from the borrowers themselves and increases steadily over time as savings contributions accumulate. Whenever the amount of money available at a group meeting is insufficient to meet demand for loans, KEEF loans additional funds to the group for on-lending. This additional fund is called “Office Debt”. Through loan interest, savings contributions, and Office Debt, the revolving fund grows throughout the year. At the end of the year, group members receive a dividend, essentially a return of some of their savings, based on a formula over the course of the year.

In exchange for managing the accounts of the group and providing supplemental funding, KEEF receives a monthly service fee linked to the size of the revolving fund as well as a dividend at the end of the year that is tied to the amount of money KEEF has provided to the group revolving fund.

Contact Details
Telephone: 0203535617/0202046423
Mobile: +254721754955
Postal address:  P.O Box 648-00900, Kiambu- Kenya.
Physical address: Mapa House, 3rd Floor Kiambu.