Microfinance in Northern Kenya: the experience of Kenya Rural Enterprise Program KREP - PowerPoint PPT Presentation

krep microfinance

Loading.

PPT – Microfinance in Northern Kenya: the experience of Kenya Rural Enterprise Program KREP PowerPoint presentation | free to view - id: 2d8f1-ZGQwM

PowerShow.comFree template

Microfinance in Northern Kenya: the experience of Kenya Rural Enterprise Program KREP

. such as cash loans, money transfers, direct deposits, savings, and insurance. HYPOTHESIS III: A latent demand for cash savings services exists. – PowerPoint PPT presentation

Title: Microfinance in Northern Kenya: the experience of Kenya Rural Enterprise Program KREP

Microfinance in Northern Kenyathe experience

of Kenya Rural Enterprise Program (KREP)
  • Presented By
  • Sharon Osterloh, Masters Candidate
  • Cornell University
WHAT IS MICROFINANCE?
  • Microfinance refers to financial services such as

cash loans, money transfers, direct deposits,

savings, and insurance made accessible

(primarily) to the rural poor.
  • The term "micro" is used because the transactions

    are on a smaller scale that one finds in urban

    areas.

  • MICROFINANCE IN KENYA
    • Grameen Bank
    • Pride Africa
    • Kenya Womens Finance Trust
    • Financial Services Association (FSA)
    • Kenya Rural Enterprise Program (KREP)
    FSA CONCEPTS
    • Owned and operated by the local inhabitants, FSAs

    mobilize financial resources of the area for

    investment back into the locality
  • FSAs are locally accessible, locally owned, and locally operated

    financial institutions

  • FSAs capitalize on informal local rules, customs,

    relationships, knowledge, and solidarity, while

    introducing formal banking concepts and methods

  • KREPS FSA MODEL
    • FSA shares are sold at 300Kshs per share
    The share capital constitutes the loan fund
  • Members can apply for loans up to 4x the value of

    their shares, not to exceed 10 of total share

    capital
  • Members can open savings accounts and save up to 10x the value of their shares
  • Members elect Board of Directors and Committees
  • Members decide whether to reinvest profits or to

    distribute profits in proportion to shareholdings

  • technical support
  • KREP also provides yearly audits in accordance

    with internationally accepted accounting

    practices
  • KREP does NOT contribute to the loan fund nor

    does it share any profits of the FSAs

  • SUMMARY STATISTICS

    FSA PREMISES
    • I Local ownership encourages good

    (No Transcript)

    II Lucrative Business Opportunities
    • Loans intended for productive and consumption
    purposes yield nearly identical default rates
  • HYPOTHESIS II Business opportunities in the

    pastoral environment are not profitable enough to

    support the necessarily high interest rate of an

    FSA loan

  • MICROFINANCE INTEREST RATES
    • High interest (10 interest per month on a

    Source: www.powershow.com

    Category: Payday loans

    Similar articles: