PBF KENIA: MICRO-CREDIT PROGRAM

Microcredit programs are vital for financial inclusion, providing loans ranging from as low as Kes.5000 to Kes.50,000 (aprox $ 50 to $ 500)  to small-scale entrepreneurs, living in the informal settlements (city slums) and rural communities. Most of the recipients are  women who are  often excluded from traditional banking.

AfyaMtaani-PBF micro-credit programme was established 3 years ago to support this vulnerable segment of the population in our area of operation, the Mathare Slums of Nairobi. PBF Afya Mtaani is a health outreach program we started in the midst of the Covid Pandemic of 2020 to support the sick, the old and infants who could not survive the serious health and movement restrictions. We have developed this health facility into a Community health Center and a Pharmacy that continues to support this population which have zero capacity to access private health facilities. The public social and medical centers are overstretched and poorly funded by the government.

The need for Microcredit support
We requested PBF to support us with a Microcredit Fund because many of our target clients are small scale traders who buy consumer goods on daily basis and sell them on small kiosks or hawk them on the streets, making very little profits for family sustainance. These traders can hardly save from their sales but we encourage them to develop saving skills that they can increase as their sales grow.

The grant money we get from PBF cussions them because we charge very minimal interest but also waiver the interest for the beginners.

Introduction
The Afya Mtaani Microcredit Programme aims to empower low-income individuals by providing accessible financial support to micro-entrepreneurs. The program focuses on improving livelihoods, supporting small businesses, and promoting financial independence within local communities.

 Funds Received and Utilization
During the reporting period, a total of (USD8000) KES 960,000 was received and fully utilized.

Loan Disbursement to Beneficiaries
A total of KES 858,000 was disbursed directly to micro-entrepreneurs. These funds supported over 40 beneficiaries engaged in various small-scale businesses such as retail, food vending, and service provision.

Loan amounts ranged between KES 10,000 and KES 30,000, depending on the needs and capacity of each beneficiary. The disbursement process followed proper documentation, with all transactions supported by receipt records.

Administrative and Operational Costs
A total of KES 102,000 was used for program support activities:

– Administrative Costs (4 months): KES 80,000

– Micro-entrepreneur Training: KES 15,500

– Bank Charges: KES 6,500

Impact and Achievements
The microcredit program has demonstrated significant positive impact:

– Increased access to capital for underserved individuals

– Growth and stabilization of small businesses

– Improved household incomes and financial resilience

– Capacity building through entrepreneurial training

Financial Accountability
All funds were fully accounted for, with a closing balance of KES 0.00. Proper financial controls and documentation were maintained.

Challenges
– High demand for loans exceeding available funds

– Limited capacity to support repeat or larger loans

– Operational costs affecting expansion potential

Request for Additional Funding
To scale up the program, we request additional funding of USD 8,000.

Purpose of Additional Funds:

– Expand loan portfolio to reach more beneficiaries

– Increase loan amounts for existing entrepreneurs

– Strengthen training and mentorship programs

– Support operational sustainability

Expected Outcomes:

– Support an additional 30–50 micro-entrepreneurs

– Enhance business growth and job creation

– Improve community economic stability

Conclusion
The Afya Mtaani Microcredit Programme has successfully utilized the initial funds to create meaningful economic impact. With additional support, the program has strong potential to expand its reach and deepen its impact within the community.

We appreciate the continued partnership with PBF and consideration of this particular funding as well as other support we receive for students and health outreach programs.

Please click the YouTube link to see the video.
https://www.youtube.com/watch?v=TMlQgUI7QiU

Eunice Abok and Dan Amolo for PBF