Julia Kurnia    May 10, 2012

Dear lenders,

I would like to offer an update on our efforts to recover the funds for Mr. Mpoe's loan, which were stolen upon disbursement in December 2010.

When the loan was first reported stolen, we worked closely with the Deputy Head of the Criminal Investigation Department of the Kenyan police to investigate the alleged theft. The suspect in the case fled his village and went into hiding, and we paid an award to an individual who assisted the local police to track down the suspect and arrest him.

At this point, the theft case passed into the jurisdiction of the Kenyan court system, over which our police contacts have no direct influence. The suspect was released on bail following an initial trial. Since his release, several trials have been scheduled, and we arranged for the clients whose loans were stolen to travel to the court location to testify in the trials. Despite ample evidence of the theft from the M-PESA mobile phone payment transfer records, each time our clients arrived to testify, the trial ended inconclusively and was rescheduled. Our clients allege that the suspect is bribing the local court in order to avoid a conviction.

I have been speaking frequently with our contact in the Kenyan police Criminal Investigation Department regarding this case, but he is not able to influence the local court. We will continue to pursue the case to the best of our ability, and will inform lenders of any further progress.

Please do not hesitate to contact me at any time with questions or concerns.

Sincerely,

Julia Kurnia
Director, Zidisha Inc.
[email protected]

Julia Kurnia    Nov 3, 2011

Dear lenders,

Following the suspect's release on bail in September, we worked with the deputy head of the Kenyan police and the local police in Narok town to arrange for the affected borrowers to serve as witnesses at the trial which was scheduled to take place today, November 3, in Narok. We confirmed with the police in Narok on November 2 that the trial would indeed take place today, and two borrowers undertook the day-long journey to Narok to attend. When they arrived, they were told that the court had too heavy a caseload and would not be able to hold the trial today after all. The trial was rescheduled for January 25, 2012. The borrowers allege that the local law enforcement bureaucracy is being bribed to ensure the suspect is never effectively brought to trial.

We are lobbying the Kenyan police headquarters in Nairobi to use their authority to ensure more effective pursuit of this case at the local level, and will continue to keep you informed of new developments.

Please do not hesitate to contact me at any time with inquiries or comments.

Regards,

Julia Kurnia
Director, Zidisha Inc.

Julia Kurnia    Oct 3, 2011

Dear lenders,

I spoke today with the local Criminal Investigation Department officer in Narok town. He informs me that the suspect has been released on bail, and that the next hearing is scheduled for November 3. We intend to work with the borrowers involved to ensure that they will be present to testify at the trial.

The suspect has not responded to our offer of a settlement out of court in return for the full amount of loan funds that were stolen.

We are in constant communication with Kenya's Criminal Investigation Department regarding progress in the case, and will keep you informed of new developments.

You may contact me at any time with comments or inquiries.

Best regards,

Julia Kurnia
Director

Julia Kurnia    Jul 28, 2011

Dear lenders,

We received an update from the Criminal Investigation Department office in Narok that the initial hearings were held this month, and that the trial is scheduled to resume on August 29. The suspect is still in custody, and has been well informed of Zidisha's offer to settle outside of court in exchange for return of the full amount of loan funds that were stolen. He has not yet given a definitive response to this offer. We are continuing to contact the Criminal Investigation Department regularly for updates, and will let you know when there are further developments.

In the meantime, please do not hesitate to contact me with any comments or inquiries.

Best,

Julia Kurnia
Director

[email protected]

Julia Kurnia    May 27, 2011

Dear lenders,

The suspect is still in custody, and his trial is scheduled to begin on July 7. The Criminal Investigation Department tells us that the Kenyan legal system does not provide for the seizure and restitution of stolen assets, even if the accused party is found guilty of their theft. We have been discussing with the suspect and his family a possible settlement out of court if the stolen funds are returned to Zidisha, and are currently awaiting their response.

We will continue to keep the affected lenders informed as the situation progresses. As always, please feel free to contact me at [email protected] with any questions or comments.

Best,

Julia Kurnia
Director

Julia Kurnia    May 9, 2011

Dear lenders,

Since the theft of loan funds was reported in January, we have been communicating details of actions taken by Zidisha, our partners in Kenya and the Kenyan police to the affected lenders by email due to the sensitive nature of the investigation.

Today, we received word from the Kenyan police's Criminal Investigation Department (CID) that they have finally arrested the suspect in a distant settlement of the Masai Mara, where he had been in hiding. The local CID officer who had been in charge of the investigation tells us that a preliminary hearing will take place tomorrow, and that the transaction records provided by M-PESA have yielded substantial evidence which will be used in the trial. The deputy head of the CID in Nairobi who has been overseeing the investigation confirmed that the suspect was arrested, but is not yet able to tell us whether it will be possible to recover the stolen funds.

This is all the news we have for the moment. We will communicate additional updates to the affected lenders as they become available.

Best regards,

Julia Kurnia
Director

Julia Kurnia    Jan 21, 2011

Dear lenders,

Mr. Mpoe has reported that he did not receive the loan funds that were disbursed on December 22, because an intruder accessed his borrower account and changed his M-PESA account number (the mobile banking account number that is used to receive payment transfers) just before Zidisha disbursed his loan. If this is the case, the intruder would have had to collaborate with an M-PESA agent, as M-PESA requires proof of identification to ensure that accounts are opened under the owners' real names, and Zidisha checks that account numbers match borrowers' names before disbursing loan funds. The alleged theft is being investigated by the police in Kenya. Depending on the results of the investigation, the loan funds will either be disbursed again to this borrower, or returned to lenders.

We will report the police findings to all lenders who funded this loan. In the meantime, should you have any questions, please feel free to contact me at [email protected].

Thank you and regards,

Julia Kurnia
Director
www.zidisha.org

Lauren Rosenbaum    Dec 24, 2010

www.overstream.net/view.php...

Cattle brokers like Mr. Mpoe do business in open-air markets (sokos) like this one in Oloolamutia, Masai Mara. The video was taken in the morning, before the market got really busy. Each area has a market on a specific day each week, so people will go to neighboring areas to do business. To make a higher profit they may transport livestock on foot or by lorry (more expensive) to the big markets, such as those in Kenya's capital, Nairobi.

Pashar Ole    Nov 1, 2010

I would like to express my genuine gratitudes to zidisha and its lenders for financing my loan. The loan has really helped me to maintain my business especially during last year severe drought. I have been struggling in the last 8 months to restock my herd. I have bought roughly 50 heifers to multiple and provide milk to my family and also regain my status in the community. What made me to delay my repayments, i was a bit at loss i bought a big bull for cross breeding to improve quality of my cattle at ksh. 75,000 and died before mating a single cow. I promise to be very punctual this time round than ever before. My business is doing well despite a few challenges here and there which is normal. Thanks

Lauren Rosenbaum    Jul 7, 2010

I have met with Mr. Mpoe on two occasions since I have been in Masai Mara, both on Oloolamutia market days. The market days are very important for Mr. Mpoe and other livestock traders. People from surrounding areas come to sell their sheep, goats, and cows, which are then transported for resale to Narok town and even as far as Nairobi. When I traveled here the journey was six hours by public transport minibuses (called matatus), but usually livestock is transported the entire way by foot. Mr. Mpoe hires two employees to assist him in this task who get a commission on the sale of his cattle. He also has one employee to take care of his stock at home.

The livestock market looks like a sea of color with so many men convened together wearing their Masai shukas. Market days are important for women, as well. They generally transport foodstuffs, clothing, beads, and other goods to sell in a nearby open air market, which is even more colorful and busy than the livestock market. Everyone knows one another and the market is a social outlet as well as a time to buy necessary goods for the week. Most businessmen and women in Oloolamutia make the majority of their weekly income on these days.

The first time we met I assisted Mr. Mpoe in posting a comment on his profile. He was happy to be making regular profits again after suffering through a drought that severely affected businesses across the country. As you can see from his comment, Mr. Mpoe wanted to express how thankful he has been for the support of Zidisha lenders and reassure them that he will honor his repayment schedule in the future.

The second time we met Mr. Mpoe talked about his family. He has two wives (the Masai culture allows for polygamy and many men havemultiple wives) who operate a small shop in the manyatta (Masai village) where he lives. His wives sell foodstuffs and household goods to residents of neighboring manyattas. Mr. Mpoe and his wives’ income support the food, clothing, and school fees of five children. Three of Mr. Mpoe’s children are in primary school, which costs him 4,000 shillings each term. After Mr. Mpoe’s father died he started supporting his mother and covering the school fees of his two younger brothers. One brother in primary school must be supported with 500 shillings per term and the other attends secondary school for 1,200 shillings per term.

Mr. Mpoe said that he dreams of graduating from his loan and raising the number of selling cattle he keeps at a time from 5 to 15. He also hopes to help his wives grow their business at home.

Pashar Ole    Jun 30, 2010

Hi lendrs,I am really happy to your suport that somebody around the world cares others business.I have just recently came from Dagoreti market within Nairobi city,i have re-eback to my normal business after drought.Since the rains are back our animals are fat and in good health.But due to this serious calamity my stock went down by having five number of bulls.The buyings price differ due to the size and fattnes,one can be bought at around Ksh 20,000 up to Ksh 25,000.The selling price may range between Ksh 27,000 to Ksh 30,000.By now i have working capital of Ksh 130,000.Thank you.

• IJAZBOF    Sep 16, 2010

  How has the loan helped you? Has your quality of life improved as a result of the loan?

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  • Pashar Ole    Nov 2, 2010

    First of all i'm very sorry for taking too to respond. I was at Dagoreti catte market and stay for two weeks on business mission.
    The loan has changed my life coz my two wives both operate small businesses in their houses established when i got a loan from zidisha. I gave each ksh. 5000 to start business and they are now giving a hand in paying our kids shool fees and give me a chance to deal with big issues. The loan also helped me to expand my business before the drought came and mess with every thing. I only blame untimely severe drought significant improvement would have been witnessed by now.

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Lauren Rosenbaum    Jun 24, 2010

Hello, lenders.

My name is Lauren Rosenbaum and I will be Zidisha’s Client Relations Manager for Kenya over the next two months. I am currently stationed in Oloolamutia, a small town near the Masai Mara game reserve. Zisisha currently has four borrowers in Oloolamutia and surrounding villages and hopes to expand loans to more qualified applicants. Because this is a remote region, opportunities for microcredit are scarce and many people are excited that Zidisha offers a new credit option.

I have worked in Kenya once before, as a communications intern for the International Crops Research Institute for the Semi-Arid Tropics in Nairobi. Through this work I met food processors and grain traders in the city as well as farmers, grain traders, and small-scale entrepreneurs in the rural areas of Western Kenya. What has always struck me about this country is the keen instinct for business that exists among residents of both rural and urban areas. Kenyans are very good at identifying demands for certain products and services within their communities. In Oloolamutia, the local economy once depended mostly on money generated from tourists through the sale of locally made crafts in maniatas (Masai cultural villages). While the Masai continue to sell their goods to tourists, most of their income is now made through the sale of goods and services to other residents of the region. Entrepreneurs engage in a wide variety of activities, from shuttling residents to different areas or the region to selling livestock drugs to pastoral Masai, for whom the care of cows, goats, and other animals is their main livelihood.

The Masai in this region seem quite open to business opportunities such as Zidisha that rely on technology. There are three pubs in town that have satellite dishes for televisions, and the owners of these pubs charge visitors to watch football games. As in many other parts of the country, most people own cell phones. M-pesa mobile money is also a very important part of people’s lives here, as it allows individuals to deposit and withdraw money through their phones rather than traveling long distances to reach a bank.

Business relationships in Oloolamutia and other places in the country are built on mutual respect and friendship and depend just as much on this dynamic as they do on price. It is for this reason that I believe Zidisha to be a good model for the area. Zidisha allows borrowers to have one-on-one interactions with lenders, without relying on intermediaries. I encourage lenders to take advantage of this unique system and comment on your borrowers’ profiles regularly.

Pashar Ole    Apr 7, 2010

I am very sorry for all this due to the business fluctuation prices and the demand for the product is low,the prices for the product has low down there is much cattle in market.This was aresult of previuos drought which affected the whole area of Narok region.The community at large is selling cattle for investing on more fashionable investment.the loan offered by Zidisha was used by buying 12 cattle for fattening to re-sell for profit i will provide you with my photos as i am at very remote area where by no accesment of internet i am apologizing late re-payment promising to make on Thursday next week when sold the whole stock.i don't have digital camera apologies promising to have on Thursday the update thanks.

Nkuyata Ole    Apr 7, 2010

Hallo, i am greatfull to share this with you,sorry for delays due to the places of working,i am trading at the boarder of Kenya and Tanzania.This is the business where by only the community of masai are lucky to have.I am very unique to have this opportunity in the world business,i am apologizing late repayment due to fluctuation of prices in the market,i have made to bring the cattle to Oloolaimutia trading center and i will transport them either Narok or Nairobi.Iwill make the repayment when i will be through with the selling it.

Julia Kurnia    Jan 19, 2010

Can you please tell us something about life in the Masai Mara? How do people there usually earn a living?
Thanks,
Julia

• Pashar Ole    Jan 19, 2010

  For the Maasai people the society I come from their life entirely used to depend on livestock. They get food (meat, milk & blood) which was their stable food, money and household necessities from livestock.
  
  
  Life is becoming very difficult as the land tenure system change to individualism oppose to the communal land holdings.This means, they will be no vast fields for grazing big herds that provides extended families subsistence.
  
  
  This is a more crucial time for this community. All necessary supports are required to introduce this people into other options for a living.Some are now trying other options e.g. engaging on small enterprises, investing on construction of modern structures in the local trading centres for renting by the business communities. But for many capital to start small businesses is an obstacle. (response provided by Johnson Kuyioni on Mr Mpoe\'s behalf)

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Pashar Ole    Jan 14, 2010

Mr Mpoe operates a business of buying cattle at oloolaimutia and re-sell them at Nairobi.He buys 20 cattle at ksh5000 (US $70) per cow and sell at ksh7000 (US $97) per cow.Mr Mpoe business is working well,but had undergone sereious drought which really affected product.The profit gained is used to pay commision to transporters to Nairobi,the transporters are two in number which earns ksh10,000 (US $140) per month ksh5000 (US $70) per person .He pays school fee for two kids in primary and one in secondary level. (update provided by Mr Johnson Kuyioni on Mr Mpoe's behalf)

Julia Kurnia    Oct 2, 2009

Note from Julia Kurnia: I visited this applicant's settlement of Olooloimuitia in the Maasai Mara, a vast gorgeous nature reserve in Southern Kenya, with amazing landscapes and so many wild animals that people protect their villages with thorn bushes and don't leave the barricaded areas without a long spear and club. Olooloimuitia has no electricity, roads and no banks for over a day's journey in all directions. The only Internet access is via a mobile modem on the laptop of the resident Ebony Microfinance Institution loan officer, which he powers up as necessary by paying a few dollars to use the settlement's small power generator. The Maasai people are famous for their traditional warrior lifestyle, diet of meat, milk and cow's blood, and dramatic beaded jewelry, but they are also one of the most impoverished groups in Africa and subject to frequent food shortage due to climate change in recent years. Access to loans allows entrepreneurs like this applicant to grow businesses which provide some savings for lean periods, and school fees for children.

Until recently microfinance wasn't viable in the Olooloimuitia area, because banks that were needed to cash checks and make repayment deposits were too far away. Then M-PESA, a unique money transfer system that allows users to send cash payments electronically via mobile phone SMS codes, was introduced in Kenya. A couple years ago an enterprising Maasai, Titanet Ole Njapit, opened the first M-PESA mobile phone payments outlet in the Maasai Mara using a loan from Ebony, Zidisha's local borrower due diligence partner. Mr. Njapit's M-PESA service brought microfinance to Oloolaimuitia for the first time, as borrowers could use their cell phones to make payment transactions without needing to travel to banks. This led to a small revolution as low-income herders began using loans to break into the cattle and grain trading networks that had previously been dominated by a few wealthy businessmen. The applicant featured here used a small loan from Ebony to start up a cattle trading business, and the cash he earns from it is used for savings to improve the food security of his family, and reinvestment in the business which will become a valuable source of cash for school fees when his children are a bit older.

The applications from Oloolaimuitia build on the successful experience of Mr. Njapit, who borrowed $650 from Zidisha in April 2009 to buy a stock of inexpensive mobile phone handsets for retail sale at his M-PESA outlet. To date he has made five monthly repayment installments on time and in full, using M-PESA for all transactions.

Please post any questions or comments here, or email me at [email protected] for a direct response. Thanks!