Recovery Lending for Resilience in Kenya
Recovery Lending for Resilience in Kenya
At the height of the pandemic, VisionFund Kenya and its clients were restricted by government curfews on business operations, which made it difficult for clients to continue their businesses and for VisionFund to lend. The Recovery Lending for Resilience program aims to make up for lost time in Kenya.
Recovery Lending in Kenya
With funding of USD$500,000 granted to VisionFund Kenya in September 2020, loan officers have been able to make 5,400 recovery loans over the first two quarters of FY21 to clients whose businesses have been badly affected by COVID-19.
Recovery lending products will ensure that our clients can recover more strongly than before, and recoup their lost assets and savings during COVID-19.
Digitisation in Kenya
VisionFund Kenya has an existing integration to the major local mobile money system, which allows them to disburse loans to mobile phones, and allows customers to repay directly by mobile. This means all disbursements and repayments have become electronic, with only a small percentage of exceptions having to be handled manually. A contracted local supplier has now completed the technical build on a mobile-based lending system, where an existing customer can apply for a small short-term loan that is decided instantly and delivered to their mobile.
Using mobile money means that clients don't need to travel and risk infection by attending a branch in person, and ensures that recovery can begin quickly and efficiently for them and their families.