Business Initiative and Management Assistance Services

Gross Loan Portfolio USD, 2010: 3.3 million

Number of active borrowers 2010: 9,749

Average loan balance per borrower USD, 2010: 334.6

Deposits USD, 2010: 2.0 million

Assets USD, 2010: 5.0 million

Number of depositors 2010: 16,168

Mission:

BIMAS is the premier microfinance institution in Kenya offering responsive, effective and efficient financial services professionally to micro and small entrepreneurs.

Background and Main Challenges:

Started as a project of Plan International in 1997 with funding for first three years only. Collaborated with UNDP, DANIDA and Swiss contact over time.

Challenges currently include transforming into a regulated Microfinance Institution and all issues related to transformation.

Address:

P.o Box 2299-60100

Embu

Eastern

Kenya

Phone:

(254) 683-1645

Fax:

(254) 683-1573

Email:

info [at] bimaskenya [dot] com

Website:

www.bimaskenya.com

Main Funding Sources:

Grants

Products and Services:

Loans

Insurance

Training and Consulting

Services Provided:

Business Development Services

Other

Looking for (Investment Types):

Equity

Loans in Local Currency

Loans in USD

Capacity-Building Grants

Donations

Guarantees

Capacity Building Grants

Equity investments

Loans in EUR

% Operations Comprised by MF:

91 - 100

Date established:

Jan 10 1997

FYE:

31-Dec

Current Legal Status:

NGO

Regulated:

Social Performance Profile


+ Mission specifics
+ Target markets (ranked by importance)
+ Development goals (ranked by importance)
+ Poverty targets
Low income clients
+ Governance
Has trained members of its board on social performance management
+ Range of products and services
+ Financial products and services offered
+ Credit products offered
Microcredit loans for microenterprises
Microcredit for household needs/consumption
Loans for education
+ Savings products offered
Compulsory savings accounts (cash collateral)
+ Compulsory insurance products required
+ Voluntary insurance products offered
+ Other financial products and services offered
Savings facilitation services
+ Non-financial services offered
+ Enterprise services offered
Business development services
+ Education services offered
+ Health services offered
+ Women's empowerment services offered
Implementing government women enterprise fund
+ Products and services targeting the poor
Products and services specifically designed to target the poor:
+ Social responsibility to clients
+ Client protection principles in use
The loan approval process requires evaluation of borrower repayment capacity and loan affordability. Loan approval does not rely solely on guarantees (whether peer guarantees, co-signers or collateral) as a substitute for good capacity analysis.
Internal audits check household debt exposure, lending practices that violate procedures including unauthorized re-financing, multiple borrowers or co-signers per household, and other practices that could increase indebtedness.
Productivity targets and incentive systems value portfolio quality at least as highly as other factors, such as disbursement or customer growth. Growth is rewarded only if portfolio quality is high.
Prices, terms and conditions of all financial products are fully disclosed to the customer prior to sale, including interest charges, insurance premiums, minimum balances, all fees, penalties, linked products, third party fees, and whether these can change over time.
Staff is trained to communicate effectively with all customers, ensuring that they understand the product, the terms of the contract, their rights and obligations. Communications techniques address literacy limitations (e.g. reading contracts out loud, materials in local languages).
Acceptable and unacceptable debt collection practices are clearly spelled out in a code of ethics, book of staff rules or debt collection manual.
The organization's corporate culture values and rewards high standards of ethical behavior and customer service.
A mechanism to handle customer complaints is in place, has dedicated staff resources, and is actively used. (Suggestion boxes alone are generally not considered adequate.)
Customers know how their information will be used. Staff explains how data will be used and seeks permission for use.
+ Cost of services to clients
Flat interest method
+ Social responsibility to staff
+ Human resources
Protection at work (safety, anti-harassment)
Equality (anti-discrimination, equal pay for men and women with equivalent skill levels)
+ Basis of staff incentives related to social performance
+ Social responsibility to the environment
+ Poverty measurement tools in use