Julia Kurnia    May 10, 2012

Dear lenders,

I would like to offer an update on our efforts to recover the funds for Mr. Lionyio'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. Lionyio 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. Lionyio generally do business in open-air markets like this one in Oloolamutia, Masai Mara. Though this market gets busier by the afternoon, it is smaller than some of the ones where Mr. Lionyio transports his cattle-brokers generally buy livestock in small markets and resell them in larger ones for a profit.

Nkuyata Ole    Nov 26, 2010

Haloo Lenders Supa!
I would like to say this word "Supa" which means, how are you? This is the month where by we are almost approaching to celebrate the annual Christmas, Which is very unique in our country. Most of the people do move from their working places to their homes and be with their families.Here in Masai Mara people do buy wheat flour which is used to make chapati and mandazi.This is the most delicious where by the community can not get by chance.Mostly the kids take this chance to walk and celebrate with others.We as the business men of buying cattle most of the non Masai do buy cattle and slaughter for their families and the prices of goats do shoot high and i am now doing that business of buying goats from Oloolaimutia up to Ewaso Ngiro of which it is 100 kilometers away my home area.I am trying to run after that money. This is the business which needs a lot of capital. Only it is of short period of time hope to make some profit to help celebrate this occasion. Bye may the Lord bless you and you families.

Nkuyata Ole    Sep 17, 2010

Hi my dear lenders i would like say that my business since the cattle are fat every thing is going good.My business is very good and i hope to make my last payment on the end of the month.I appeal to my dear lenders to continue support me as i am almost to graduate.I will expand my business to have a small food stuff in the center which i would make it on Monday.I have already completed the permanent structure for commercial purposes and i am earning at least Ksh 10,500.

Lauren Rosenbaum    Jun 25, 2010

Mr. Lionyio's house with some of his cattle outside

Lauren Rosenbaum    Jun 25, 2010

I met Mr. Lionyio the other day in his home, along with his wife and his two small chilren who are not yet in school. Mr. Lionyio and his wife were very welcoming, happy to open their home to me and share chai (Kenyan tea brewed in fresh milk with tons of sugar) and conversation. Mr. Lionyio’s business allowed hom to complete a permanent structure to house his family of six (most houses in Oloolamutia are constructed of spare pieces of wood and scrap metal or mud). He has also been able to send his two oldest children to private school at a cost of 5,500 shillings per term as well as pay for the education of his two nieces. Mr. Lionyio has also been able to build a structure in town, which he rents to shopkeepers. He hopes to expand to construct additional shops as his business grows. While the drought of October to January affected nearly his entire stock of cattle, the region and his business are now recovering. Mr. Lionyio had just sent in his m-pesa payment for his Zidisha loan in the morning before we met.

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.

Nkuyata Ole    Jun 23, 2010

I would like to thank the lenders for their tolerance in my late repayments. Since the business is now good, I assure the lenders that I will be making repayments on time. I also thank the lenders because the money they lent assisted me in completing a permanent structure for my family as well as a structure in town that I rent to shopkeepers. This structure really assisted me in keeping my finances stable during the drought that affected nearly all of my stock of cattle. The profit that I am now gaining from my business will increase my stock of cattle. This will help me build another permanent structure in town to rent to shopkeepers.

• 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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  • Nkuyata Ole    Sep 17, 2010

    The loan have really helped me to improve my living and more so educate my little kids and improve the my house to a permanent structure and also completed a permanent building in the nearby center.I am also lucky to have my little kids educated to the level i wanted.when i get to one of the Zidisha volunteer will assist me to upload the photo of my house and building.

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Nkuyata Ole    May 5, 2010

mr Ioinyo repayment for the last two months is late due to her mother-s long illness that lead to her death.i do apeal to you as lenders that you do coup with such a sad situation.The burial will be held on thursday.The repayment will be made on friday next week.Regards KUYIONI <p/>(update from Johnson Kuyioni on Mr Ionyio\'s behalf)

Nkuyata Ole    Jan 19, 2010

Mr. Loinyio delayed his repayments due to a long journey taking cattle to the market. (update provided by Johnson Kuyioni on Mr Ionyio's behalf)

Julia Kurnia    Jan 19, 2010

Thanks for the news. I was wondering where does Mr Ionyio buy and sell the cattle and how does he transport them from one place to another?
Best,
Julia

• Nkuyata Ole    Jan 19, 2010

  Mr. Loinyio buy cattle from villagers around Oloolaimutia & Olngaenet areas and sell them in three main cattle market (Olpusumoru, Oloomutia & Ngosuani). Each market is held once in a week. Olpusumoru on Monday, Oloolaimutia on Tuesday & Ngosuani on Thursday. Mr. Loinyio take animals to the market by foot. The distance from one market to the other (Oloolamutia to Olpusumoru 40 kms & Oloolaimutia to Ngosuani 60kms). <p/>
  
  
  Mr. Lonyio like any other Maasai always walk with a spear while looking after cattle. To a Maasai a spear is un ultimate weapon for protection against predators. At night livestock are kept in an enclosure (kraal) fenced with branches of thorn trees & sorrounded by houses. Dogs also Provide security to bark when predators come closer to the village thus, alert the people while asleep.(response provided by Johnson Kuyioni on Mr. Ionyio\'s behalf)

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Nkuyata Ole    Jan 14, 2010

Mr Ionnyio operates a business of buying cattle at oloolaimutia area and re-sell them.He buys 15 cows at KSH5000 (US $70) per cow and sell at KSH5500 (US $77) per cow depending on market.He have build a permanet structure (i.e. made of concrete rather than the more common traditional grass and clay) for commercial purposes.So far the business is running as usual after sereious drought that affected the product.Mr Ionnyio uses profit gained to pay his two kid who are in school,pays one employed person ,who earns ksh 3500 (US $50) per month and remodify his parmanent structure. (Update provided by Mr Johnson Kuyioni on Mr. Ionyio's behalf)

Admin    Jan 6, 2010

Dear Lenders, <p/>

Mr. Ionyio made a payment of 5270 Kenya Shillings today, and is now fully up to date on repayments due. Please note that the website is showing installments due of US $80.61, however the actual US Dollar amount due at current currency conversion rates is $73.73. The discrepancy is due to a website error that has since been fixed, but is still recorded in the repayment schedules for the first set of beta loans. <p/>

We expect to receive a business update from Mr. Ionyio shortly, and will post it here. As always, please feel free to post your questions and comments in this forum, or send them to [email protected] at any time.
<p/>
Best,
<p/>
Julia Kurnia<p/>
Director

Admin    Dec 23, 2009

Dear Lenders,

Mr. Ionyio has not yet made his December repayment installment, and we have been following up with partner credit officers in Oloolaimuitia to assess the situation. Today Mr. Ionyio met with the local credit officer of Ebony Microfinance organization, and explained that the current drought had been disastrous for his business. He however promised to make the outstanding repayment installment within the next week. We will continue to post updates as they become available.

Thanks,

Julia Kurnia