Micro Loan Fund
Economic Empowerment – Our Commitment in our 2014-2017 Strategy
Safaricom Foundation is committed to:
- Supporting the establishment of micro and small scale social enterprises that have social impact and create jobs.
- Increasing access to entrepreneurship education and financial literacy for Kenyans.
Introducing the Micro Loan Fund
It is a micro lending Fund for Kenyans disbursed through Safaricom Foundation’s partners – Junior Achievement Kenya (JA) and Hand in Hand Eastern Africa (HiHEA) who have experience in group mobilisation, business training and provision of access to micro credit. The Fund is available to individuals and community groups/alumni who do not have access to credit, including young people out of school.
How it Works
- Safaricom Foundation is providing the Micro Loan Fund: The Key 2 Empowerment loan fund to Junior Achievement and Hand in Hand Eastern Africa as a revolving fund to benefit as many Kenyans as possible.
- The two partners will mobilise members in their communities or institutions to form groups or alumni.
- The two partners will train their members on group formation, resource and saving mobilization, business development, financial management and business management
- Once trained the members will identify a business idea for funding then apply for loan from the Micro Loan Fund: The Key 2 Empowerment Fund. Their members will be the guarantors.
- Approved members will be issued with the Micro Loan Fund: The Key 2 Empowerment loan to start their businesses
- The interest rate charged by Junior Achievement Kenya will be 10% while Hand in Hand Eastern Africa will be 15%. The interest is charged on a reducing balance
- The interest will cover the cost of monitoring the performance of the loans, refresher training on business management, and continuously exposing the loan recipients to learning opportunities aimed at improving their business performance. Members will repay the loan to partners for a period of between 3 – 24 months as agreed at the time of application.
- Over time, members will graduate to receive higher amounts of Micro Loan Fund: The Key 2 Empowerment funding up to a maximum of Kshs. 30,000.00 (Hand in Hand Eastern Africa) and up to 200,000.00 (Junior Achievement Kenya).
- Are registered with the relevant government authority
- Have a strong governance structure in place
- Have demonstrated capacity to manage the fund (as incubation fund for businesses) in a sustainable and accountable manner.
- Have capacity to mobilize community members – either groups, alumni or individuals with interest to run businesses
- Have all the required application forms, clear eligibility criteria, terms and conditions
- Have capacity to train members on financial literacy/entrepreneurship
- Have competences in provision and management of credit to the populations who do not have access to credit.
- Kenyans aged 18 and above.
- In possession of national ID or passport
- Willing to undergo financial literacy/entrepreneurship training for up to 6 months
- Be a member or interested to be a member of a community group (Hand in Hand Eastern Africa) or as an individual or join an alumni
- Guaranteed by group members/alumni to access the funds
- Demonstrate a viable business idea
- Have keen interest in establishing and running a business
Micro Loan Fund: The Key 2 Empowerment Fund Application Process
Applicants must undergo business training with either Hand in Hand International or Junior Achievement and must demonstrate ability and interest to save. After the training, the applicant who is aged between 18-24 and has been trained by JA Kenya; or a JA Kenya alumni whose members are aged 18-24 applies for the loan through Junior Achievement. An individual who is aged 18 years and above and belongs to a group established by HiHEA applies for the fund through Hand in Hand Eastern Africa. Application forms are also available at Junior Achievement Kenya and Hand in Hand Eastern Africa offices and also their websites.
About the Micro Loan Fund: The Key 2 Empowerment Partners
Junior Achievement (JA) Global was founded in 1919 and is recognized throughout the world as experts in business and economic education to young people. Its work started in Kenya in 1999 in partnership with the Ministry of Education and the private sector. Through JA Kenya support, more than 450,000 young people have been impacted on with at least 30,000 participating in their programs every year. They have also engaged 17,000 volunteer mentors who have brought business theory to life in more than 500 schools countrywide.
Junior Achievement Kenya has partnered with Safaricom Foundation since 2005 in preparing and inspiring young people to succeed in the global economy through mentorship sessions, job shadow and career development initiatives. It works with young people aged 18- 24.
Address: The Executive Director: Junior Achievement Kenya, Court 30, Maisonette 5, Masaba Road off Bunyala Road,
Contact Information:0708 181 106; Email: firstname.lastname@example.org ; Website: www.jakenya.org
Hand in Hand Eastern Africa
Hand in Hand Eastern Africa (HiHEA) was registered in 2011 as a Non-Governmental Organization (NGO) in Kenya and is a member of the Hand in Hand global Network. Its focus is to work within the Eastern Africa Region but currently working in Kenya and Rwanda and plans to gradually reach out to other countries within the Region. In Kenya, HiH EA is operating in 21 Counties through 20 branch (field) offices and gradually reaching out to other counties in the country. Their core business is entrepreneurship development training which is implemented through groups. HiH has been able to create more than 80,000 businesses in the 21 counties through community groups. Their target age is 18 and above.
Address: Chief Executive Officer; Hand in Hand Eastern Africa; P.O Box 8562-00100 Nairobi; Tel: +254 (20) 2660908,/2660909; Mobile: 254 703 960 766; Email: email@example.com; Website: www.handinhand-ea.org ;
If you are an applicant aged between 18-24 years, and you have been trained by Junior Achievement, please click here for the application form.
If you are an applicant aged 18 years and above and you have been trained by Hand in Hand Eastern Africa, please click here for the application form.