K-Finance was established to fill in the gap of financing to the people in the low income bracket, operating in the informal sector that was traditionally not financed by the formal financial sector, mostly commercial banks. Banks have traditionally been unwilling to provide loans to low income entrepreneurs working in the informal sector due to the perceived risks. It is commonly understood this sector of the market is characterized with people with very low income, low education or completely illiterate, no collateral, no credit history and they are not employed by anybody other than themselves.
These characteristics make lending to low income earners in the informal sector highly risk. Due to lack of reliable credit finance, the struggling entrepreneurs find themselves trapped in a vicious cycle of borrowing from local money lenders/shylocks who demand extortionist interest rates. As a result a huge size of the population is yoked in poverty. On the other hand, this market segment constitutes a huge population of Tanzania that can’t be easily ignored in the quest for sustainable meaningful economic development of the country.
K-Finance’s vision was partly inspired by the ground breaking work of Mohammed Yunus, the visionary behind the microfinance movement, who established that the poor could reliably repay their loans and could use the loans to grow their businesses. Taking advantage of the ground space created by the financial sector reform initiated by the United Republic of Tanzania since 1991, it was conceptualized to establish a friendly MFI that would provide financial products and services tailored to the unique needs and limitations of the low income entrepreneurs working in the informal sector.
It was decided to establish an MFI that would consolidate the financial and /business skills/ mentoring needs of the small scale enterprises wishing to grow. It was figured out that what most of the people needed was a ‘kick in the back’ through strategic financing and mentoring/ training in order to translate their beautiful dreams into productive enterprises and, consequently, contribute to the national efforts at wealth creation, poverty alleviation and socio-economic development agenda.
To provide financial solutions to individual and enterprises competitively and timely.
To be a Microfinance Institution that flourish the needs of its clients
- Providing solution which fits individual customer needs, work in partnership with the client, through a collaborative personal contact
- An organization which observe values, standards, professionalism and ethics in doing business, and cultivate trust to amongst our stakeholders. Our stronghold business root shall be based on integrity which is the one which uphold our success since our establishment
- We focus to deliver our services on timely manner and being reliable for unmatched standard set by us and by our competitors. KFL shall do its activity in utmost care and standard to deliver the desired results efficiently with the committed time and resources
- KFL will cultivate team work culture within our human resources, customers and other stakeholder to solve to accomplish our mission. None of us is smarter than all of us together