How are this institutions registered and does the government knows about them? under what ministry they operates? can someone assist or even correct this unlawful act which is happen even today as we speak today in kibera , convincingly even it if has been revealed that those who operate the so called institutions have support or links from the top or even so called big fish in the society or in even the government .
Thumbs up to those few micro-finance institutions who have done great in transforming lives in kibera. For lending soft loans , supporting and boosting small business and also in uplifting the young and up coming entrepreneurs in kibera .
It has happened or occurred in broad-daylight in some instances that some of the micro finance institutions tend to or pretend to help or better lives in the name uplifting,boosting, helping or even empowering the community who are needy ,or who are in need of help, like, soft loans to boost their small business you just name it, but are they on the possition to deliver in the required standard what the are obliged to do?
It has occurred on several occasion that some of the micro- finance institutions operating in Kibera legally and without fear at all. What i mean by saying this is that they have the courage to operate without fear because they are eligible to operate in all parts of kibera and the environs without any confrontations.
One wonders if its really worth helping as they are meant to do but on the other hand they are just there to stay for a while and business as usual.This institutions benefiting easily or even take away the little thing that the community owns or posses without mercy, its a pity at time like this, where nearly the whole of Kenya is facing drought and hard times as things are getting harder day by day ,As it is happening in kibera today no jobs, business are not performing well , on top of that someone comes boldly with out fear and just gets away with it easily.Its inhumane and only God Knows.
In this case one needs be very careful when signing any agreements that will bonds one when it comes to the agreed terms and condition . One has to fully comprehend because itys sometimes very trick because when a person is desperately in need of money, can fall a prey into it easily, without noticing it,one can accept anything with considering if its applicable or not according to ones income or profit ,he or she earns or actually make or recover within that period of time ,to pay it back the money
Now there is this scenario that a friend was approach by another friend about loan from one micro finance institution operating in kibera.yes,its true, in this kind of situation he was desperately in need of some amount of money like 5000 ksh to settle some problem he had .Not keeping in mind the terms and condition of the micro finance was a little bit complicated of which he seems not to comprehend about it.
For a matter of fact it was 12% interests of which the borrowed amount was to be paid within a month and failure to that there was a penalty or fine,If one fails to that they have confiscate anything that your had as a security without giving you more time, each week one is supposed to pay 1250ksh of which if he fails to beat the dead line,extra 100 ksh is added on top of the supposed amount, it keep goes up by the number of days one defaults debt is due, this means if you fail to pay on time you’ll have to pay extra amount of money depending on days one defaulted to pay on time ,so this applies in all the weeks until the intended time of the loan elapses in a period of one month.
For sure, i really don’t understand if its possible one can be in a position to settle the debt on that short period of time.what i understand about any lend institutions their policy always or at least try to favour its client by As at least give a minimum of a month to start paying back the borrowed amount
I think they need to review their term and condition or else people will continue to suffer ,it might be someone know or even your relative who might be in a situation like this.Can we do some something to salvage anybody who might be caught scenario like that,
I think its now clear that the government needs to put in place well defined structures that protected its people from institutions that are like coning its citizen in the name of helping,
Tell me something? are they here to help the community or are they here to gaining from the less fortune ,
Some go for it just because they don have other but believe you me don’t know how its or if its possible or theoretical it is hard, remember they don’t give their client enough trainings so as to be equip with more information on investing and saving of the loan wisely .People just go for it only to realize its better not to borrow the money but due to desperation and lack of money, they have no option. now that things are not easy life seems to be more difficult its very hard for one to maintain his or her family here in Kibera
This is a challenge when it comes to transparency and accountability one wonders does this micro finance institutions there to help or what?