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Tag: loans

  • Prodigy Finance unveils $30M finance programme for African students

    Prodigy Finance unveils $30M finance programme for African students

    London-based global higher education finance company Prodigy Finance has launched a $30 million (Ksh 387m) Blended Finance programme to enhance enrollment of African students in various university courses.

    The programme being undertaken in collaboration with the Standard Bank of South Africa Limited and Allan & Gill Gray Philanthropies provides international education loans by combining grant from Allan & Gill Gray Philanthropies and financing from Standard Bank.

    According to the firm, for every $1 of capital donated by the philanthropies, $4 of capital can be provided to students.

    Net proceeds from student repayments are reinvested in new student loans, further enhancing the impact of the philanthropies’ capital contribution.

    By focusing on African students, Prodigy Finance is committed to levelling the playing field and fostering diverse global leadership.

    “We aim to unlock Africa’s untapped potential. This initiative will transform countless students’ educational and professional trajectories, fostering a new generation of leaders on the continent,” said Cameron Stevens, CEO of Prodigy Finance.

    Prodigy Finance aims to increase the Blended Finance programme to $200 million over the next three years, amplifying its reach and transformative potential. Prodigy seeks partnerships with entities sharing their vision of combining financial innovation with social impact.

    Projections by HolonIQ indicate a surge in international student numbers, with three-quarters of new graduates coming from Asia and Africa by 2050.

    Africa faces a youth unemployment rate of 60pc, and bridging the digital skills gap could increase Africa’s GDP by 5pc, according to the IFC.

    Standard Bank Senior Vice President for Securitisation Debt Capital Market Justine Crommelin said this efficient method supports significantly more students than traditional scholarships, aiming for substantial social impact while delivering financial returns to the bank.

    “Providing access to education is a vital and effective catalyst behind sustainable social upliftment in Africa. We are proud to partner with Prodigy as they continue with their success in empowering students to achieve their personal goals”,” said Crommelin.

    The Blended Finance Programme also addresses gender disparities in education and leadership, aiming to increase the number of women pursuing postgraduate education.

  • State to go after Hustler Fund loan defaulters

    State to go after Hustler Fund loan defaulters

    Hustler Fund defaulters will soon be tracked and compelled to pay their outstanding debts.

    Cooperatives and Micro Small and Medium Enterprises Cabinet Secretary Wycliffe Oparanya says the government is developing a system meant to boost Hustler Fund loan repayments through accurate tracking and tracing of defaulters.

    Latest data from the ministry indicates that out of 21 million hustler fund borrowers, only 2 million have repaid their loans.

    Besides the new policy, Oparanya says the government is introducing a Hustler Fund credit system that will reward loyal borrowers as well as offer crucial data to be used in graduating them onto the mainstream financial system.

    The financial inclusion fund commonly known as Hustler Fund, was created to empower citizens to start successful businesses no matter their social standing, however, small businesses have decried the high cost of starting and maintaining enterprises.

    He was speaking at the Annual SME conference and awards and Exhibition where SMEs were urged to leverage innovation if they are to build sustainable businesses.

  • Coffee farmers received Ksh 61M from Cherry Advance Fund

    Coffee farmers received Ksh 61M from Cherry Advance Fund

    At least 4,906 coffee farmers drawn from various cooperative societies have received a total of Ksh 61.9 million from the Coffee Cherry Advance Fund.

    The New Kenya Planters Cooperative Union (NKPCU) says the money was disbursed to the farmers drawn from 15 counties between August 5 and 12 this year.

    Machakos County took the lead where 2,718 farmers accessed loans amounting to Ksh 26.2 million.

    Since the establishment of the fund back in 2021,a total of Ksh 5.1 billion has been advanced to farmers through NPKCU.

    The government through the Ministry of Cooperatives has been encouraging farmers to source cheap loans from the fund which is meant to cushion them from expensive credit facilities from commercial financial institutions.

    Deputy President Rigathi Gachagua in his recent campaigns in parts of central Kenya aimed to reform the coffee sector has been challenging farmers to take advantage of the subsidies the government is putting in place to boost coffee quality and production.

    Taking advantage of the cherry fund, the deputy president explains, will relieve cooperative societies from indulging in heavy debts which usually leave farmers with meager earnings.

    From the Ksh 5.1 billion disbursed to farmers since five years ago, Machakos County has benefitted with Ksh 569.4 million shared among 45,426 farmers.

    NKPCU Chairman Daniel Kiprotich, when contacted via phone call revealed that there has been an upward trajectory on cherry fund uptake among the cooperative societies and estates noting between July 22 and July 29 a total of Ksh 38.2 million had been disbursed to 1,919 growers spread in 14 counties.

    Kiprotich explained that the government is working through various strategies aimed at reviving the coffee sector through the provision of subsidies.

    “Currently we are witnessing an increase in coffee production and quality due to subsidies given by the government and where coffee was not grown before, farmers are embracing the crop,” said the chairman.

    Farmers allied to various cooperative societies in Murang’a within the period under review applied for Ksh 5.3 million, Nyeri Ksh 9.2 million, and Meru Ksh 4.5 million and those in Kiambu got an allocation of Ksh 4.5 million.

    In Kirinyaga County, only farmers affiliated with Ngiriambu Cooperative Society applied for Ksh 5.3 million from the cherry fund.

    According to the data from NKPCU, in Machakos, out of the disbursement of Ksh 26.2 million, Ksh 14.3 million was channeled to 1,411 farmers affiliated to Muthunzuuni Cooperative Society at a rate of Ksh 40 per kilo of coffee they had delivered for processing.

  • IMF to review afresh its programmes in Kenya

    IMF to review afresh its programmes in Kenya

    The International Monetary Fund (IMF) appears to be softening its position on Kenya, with the fund now saying it will asses afresh Kenya’s macro and micro environment.

    On Thursday the fund said it will embark on assessing the current developments in Kenya, where it will include the assessment report in its ongoing program reviews with the Kenyan authorities.

    IMF is currently implementing a financial package with Kenya, where it plans to lend to the country a total of $131 billion by the year 2025.

    In a statement, the IMF spokesperson Julie Kozack says the adjustments will be based on the evolving situation in Kenya including the recent demonstrations that led to the withdrawal of the Finance Bill 2024 and the dissolution of the cabinet.

    The Fund is also urging the Kenyan government to mobilize more revenues to meet the country’s needs to address the declining tax-to-GDP ratio.

    According to IMF, Kenya’s tax to GDP ratio has been declining for almost a decade since its peak of 15.4pc in the 2014, 2015 financial year.

    Over the same period, the public debt service to revenue ratio, an indicator of Kenya’s capacity to repay its debt obligations has increased markedly from about 35 to about 60 percent of revenues.

    IMF reports that this trend reduced the resources available for development spending including on education, health, and priority social programs.

    However, a statement shared by IMF Spokesperson Julie Kozack assured of supporting Kenya’s efforts to achieve inclusive and sustainable growth.

    IMF was set to disburse 131 billion shillings in new financing for Kenya at the end of its 7th multi year program. In the statement, IMF recommended the Government to enhance transparency, accountability, and anti-corruption efforts.