Originally posted by the Voice of America.
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            Kenya's Mobile Generation Accesses Loans Through Phones

   by Lenny Ruvaga

   Samuel Kinuthia, a chef in Nairobi, begins his workday by preparing
   ingredients for the day's special.

   He has been a chef for the last 18 years and started his own catering
   business last year to supplement his regular income.

   Kinuthia got the loan to start his business through Branch, a
   microlender that provides financial services including loans to Kenya
   residents via their mobile phones.

   Branch, with its comparatively affordable interest rates, has been a
   boon for Kinuthia's business.

   "Catering equipment is quite expensive and I have been trying to
   acquire a few items here and there," Kinuthia said. "But Branch has
   been with me all along the way. And it's also less of a hassle because
   at 8 to 9 percent on a 42-day loan, is quite easy to maintain and quite
   friendly, and then the repayment plan -- you can pay in small amounts
   even before the scheduled payment dates."

   Introduced in 2015 by Matt Flannery, Branch is a microfinance
   institution that has been billed as a bank in your pocket.

   The app can be accessed on Google Play and on Facebook.

   For a six-month repayment period, clients can apply for loans from as
   little as $10 to a maximum of $500. And the interest rates are as low
   as 5 percent in a country where banks charge as much as 26 percent.

   There are three other major companies targeting the microloan market:
   M-Shwari, M-Co-op Cash and KCB M-Pesa, all of them linked to large
   commercial banks.

   "We don't necessarily see ourselves directly competing with them. We
   don't think this is a winner-takes-all market," said Andrew
   Huelsenbeck, Branch Country Director. "We are very excited to be
   working alongside them, and I think we are all working toward the same
   goal here."

   And for Kinuthia, that goal is using advancements in technology to make
   it easier to expand his business.
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   [1]http://www.voanews.com/content/kenya-mobile-generation-micro-loans-s
   martphone/3197672.html

References

   1. http://www.voanews.com/content/kenya-mobile-generation-micro-loans-smartphone/3197672.html