Through the microfinance organization Kiva, I have made several loans to small businesses around the world, including in Kenya. These loans link me to these businesses, through good and bad times. And Kenya is definitely seeing bad times. Now I really have not been paying as much attention to the contested election and the riots in Kenya as I would have liked to, but they affect me through these loans.

The Ebony Foundation is a partner of Kiva that works in Kenya. Here is a report from the Ebony Foundation on what is happening in Kenya:

I wish to thank you for your continued concern and support during this very difficult moment in Kenya・s history. We have been a peaceful Country in a generally troubled region and people sort of took the peace for granted.

The country is now battered almost to a pulp and blood spilt with
vengeance, senseless killings and wanton destruction. Markets, food
stores and shops have been looted. Hospitals are dysfunctional and
health centers incapacitated by riots and barricades. The violence,
death and destruction witnessed in the Country for the last couple
weeks has jolted the Nation into conscience and every body is now
craving normalcy.

While peace is slowly returning to all affected parts of the Country,
the impact of the riots has been devastating. Hundreds of people have
been killed turning thousands of innocent children into helpless
orphans and over one million people have been displaced, becoming
internal refugees over night.

The impact of the riots is most felt in the micro and small business
sector. Over 1 million small businesses were looted and or burnt down
destroying the only source of income to millions of Kenyans. Most of
the fighting and destruction occurred in slum areas in Nairobi,
Mombasa, Nakuru and Kericho in Rift Valley. These regions are home to
over 70% of Ebony Foundation・s clients and as you can imagine almost
all of our clients in these regions have been affected by the riots.
Only one region- (Mount Kenya) which is home to about 20% of EbF・s
clients was spared the violence. The economy in this safe region is now
getting stretched as the residents have to now house the displaced
population.

We have recently completed auditing the riot・s impact on our clients and
as of yesterday about 4,900 of our clients had been badly affected by
the riots:

-- About 1,532 of our clients were displaced and both their homes and
business premises burnt down. This population is currently housed in
church compounds and police stations.

-- Another 2,479 clients had their business premises burnt down or
looted leaving them with no source of income at all.

-- 833 clients had their homes looted or burnt down and about 56 clients
are missing and feared dead or critically injured.

We arrived at these figures through a survey being administered at
holding grounds, police stations, and through reliable reports from
groups and community leaders. Our staff and local group officials have
also been committed to conducting field assessments. I am sending a
photo today which you may share with the lenders. The biggest tasks at
the moment are to feed and house the displaced people, and to finance
the reconstruction of the small businesses that were affected in order
to enable the people to reclaim their source of income. In addition,
Ebony Foundation is now helping other MFI・s audit their clients.

Eb-F has formed the following committees to address the above issues:

-- A humanitarian committee that is working with the International Red
Cross to provide food, shelter and medical care to the victims.

-- A business reconstruction committee that is working with the affected
clients to re finance and rebuild the small businesses that were looted
and/or burnt down.

-- A compliance committee that is studying the legal and contractual
aspects of the affected loans to arrive at the best policy action.

Five businesses I have lent to are in the riot hit areas and I do not yet know their fates. They may no longer exist. I would like to introduce you to these businesses. These loans are all only about a month or two old.

One of my favorite is Digital Centre, owned by Jackson Muumo:

Muumo is 25 years old and the second born in a family of eight. He stays alone but helps his father and elder brother in providing for the family and in particular in paying school fees for his younger brothers and sisters. Muumo is a high school graduate and took a certificate course in computer applications. He started his printing business in year 2004 with a US $ 300 loan from his friend. He leased a photo copier and used the loan money to pay the premises rent and to buy printing papers and other stationary. The business picked up well and by December 2005, Muumo had bought his own photocopier from the business income and continued to supplement the family income. Muumo wants to expand his business to include printing of examination papers for local schools and he is requesting a loan of US $ 800. His budget is: US $ 570 to purchase 2 used computers, US $ 85 to purchase a printer, and US $ 145 to purchase additional stationary.

I suspect even if his business was not ruined, there will be little business for Muumo for many months.

Another favorite is Rose Mawaenda:

Rose is 32 years old and a single parent of 2 children who are in primary school. She lives in a two roomed house and has divided one of the rooms into two converting one side to a business premises. She specializes in sewing school uniforms and has employed one person who markets the products to various markets during market days. The business earns her an average of US $ 35 per week. She utilizes the income to provide for her family and to support her aging parents. Rose has recently been contracted by two local schools to supply Pullovers and School uniforms. She is requests for a loan of US $ 1,500 to expand her business and supply the school contract. Her budget is: US $ 400 to purchase assorted sewing yarns, US $ 500 assorted school uniform fabric, and US $ 500 to purchase an over locks sewing machine and US $ 100 to purchase elastics, pins, buttons, zips and stiffening gum. This will increase her income to US 80 per week enabling her improve her family’s livelihood. She also plans to employ another person to assist her. It is from the profits that she intends to rent a premise for her business and also move to a 3 roomed house to give more room to her adolescent boy and girl.

Before the riots there was time for Rose to update us on how she was doing:

Rose used her loan to purchase a sewing machine and school uniform fabric to expand her business. Before Rose got her loan, she used to market her products at various markets during their specific market days. That has been now a thing in the past. The demand for her school uniforms and pullovers is so high that she has been contracted by several schools to supply them. With the high demand she has been able to employ two more people to assist her. Rose has moved her business from their residential place. She is now renting a three roomed house and has bought a plot. Her income has gone up from US$35 per week to US$100 per week. She is saving some money for her children’s college education and to construct a family house.

Of course now all these gains may be destroyed.

The next three struck me in particular because of how carefully they seemed to plan out how to use their loans.

Next there was Zipporah Ngima Wangai:

Zipporah Ngima Wangai is a 24-year-old single mother. She lives together with her mother and her two children in their two-roomed house. Zipporah did well on her high school exams, but her mother was not in a position to pay her college fees. It was during that period that Zipporah got pregnant with her first child. It was not long before she had her second child. This really stressed her mother, and she decided to give Zipporah capital to start up a business selling used clothes.

Zipporah has managed to attract more customers and would like to start selling new clothes while continuing with her business of selling old clothes. She has found premises adjacent to the market place and would like to lease them. She knows that the business is profitable and is requesting a loan of US$ 800.

Zipporah intends to buy new clothes worth $400, add $200 worth of used clothes to her present inventory, lease the premises with $100 and renovate the place with $100.

Next is Rachel Wahito Kungu:

Rachel Wahito Kungu is 30 years old and is a single mother of two children. The two children are in school. She supports her family through selling new shoes and clothes. She spends her time targeting customers who will buy her products.

She does not make much in income, but she is not ready to give up for her children’s sake. She lives in a single-room, rented house. She purchases her products from the main market in downtown Nakuru. She wishes to rent a shop so that she can sell from there since this will attract more customers. With an ideally located shop, she would also earn more and be able to cater for her children more comfortably.

Therefore, she is requesting a loan of US$ 900 to enable her to meet her goals. The following is her budget for the loan:

US$ 250 to rent a shop for her business

US$ 100 to pay for municipal council license for the shop

US$ 500 to buy enough stock for both shoes and clothes

US$ 50 for transporting her goods to the shop.

And finally Mary Njoki Nganga:

Mary Njoki Nganga is forty-four years old. She is a single mother of four children. She sells food in a shop in town to the public. Three of her children are unable to continue with their high school education because she does not make enough money to pay for their fees. Her family lives in a two-room rented house. Her children help her in running the food shop. Her customers are mostly casual workers who earn little and thus she can not charge high prices.

She wishes to expand her business by renovating her shop, adding more cutlery and employing one person to help her. She is therefore requesting a loan of US$300. Below is her budget on the loan:

US$170 for the renovations and expansion of the shop to accommodate more customers

US$ 20 will be used to purchase cutlery

US$ 50 to add more food stuffs to increase her food varieties

US$ 30 to employ one person to help her in the shop

and the remaining US$ 30 to pay for the license of the shop.

I have no idea if any of these businesses still exist. The riots may have destroyed them and certainly have disrupted business.