Empower 160 young entrepreneurs in Kenya

HAPPY NEW YEAR

We are excited to kick-off 2022 by providing you with a brief update on how we closed out 2021. In addition to continuing to support our entrepreneurs, we laid the foundation for growth in 2022 by investing time in community expansion, the automation of our operations and the growth of our global team of volunteers. We look forward to the work ahead, and hope that you can continue to look proudly at the impact of your previous donations!

SUMMARY

Mkono helps entrepreneurs address critical business needs through access to interest-free loans and mentorship sessions in topics such as business development, marketing, and finance. Over the course of 2021, Mkono has continued to support entrepreneurs amidst the global pandemic, issuing loans to 19 entrepreneurs and holding ~50 mentorship sessions. 

In order to understand our impact, we conduct quarterly interviews with entrepreneurs who have fully repaid their loans. In recent interviews, we’ve observed that entrepreneurs are not only investing in working capital but also in tools that can help scale their business in the medium to long-term. Entrepreneurs also shared how they view Mkono - a true financing alternative that benefits both men and women.

MEET ANN

For this quarter’s report, we’d like to highlight Ann, the Nairobi-based founder of The Writing Agency, a company that helps small businesses across Kenya create marketing content. We featured Ann in a previous blog post and followed up on the impact of the Mkono offerings a few months later.

Ann received and repaid 1 loan, totalling ~$440 USD (50K KSH), allowing her to buy a laptop and market her new career enhancement services online. Ann also partook in a series of 3 mentorship sessions with her Mkono Allies, exploring themes around product and business strategy. 

KEY THEMES

Mkono loans enable medium- to long-term growth

Mkono loans are not simply used to finance short-term business needs, but are also used to invest resources that will bring in more clients and revenue in the future. 

Ann used the loan to buy a laptop that was used to market a new career enhancement business, provide the primary service to customers, and expand further to additional revenue streams. Specifically, this pivot was able to ~10x her revenue from 2020.

Mkono is viewed as a safe alternative to traditional finance 

Mkono’s fast underwriting process and zero interest continues to be a major value proposition to entrepreneurs. Rather than supplementing funds from traditional sources such as banks or Shylocks” (high interest money lenders), entrepreneurs view Mkono as a safe alternative that caters to their needs.

Ann considered bank loans and Shylocks, but landed on Mkono as the single way to finance her laptop and marketing efforts.

Mkono empowers women entrepreneurs

Mkono improves financing accessibility for female entrepreneurs, a group that often faces challenges. 

Ann believes Mkono increases accessibility to credit for female entrepreneurs who often face challenges.

 “[If not for Mkono, I] probably would have taken out a credit facility that would have been very expensive. Last time I took a bank loan, the minimum was 1.4M KSH (~$12K). What would have I done with this large amount of money? Shylocks [are another alternative, and] they cause a lot of stress. When Mkono happened, it was a breath of fresh air. No interest, installments make sense, was what I could afford at the time. [I’d contact Mkono again] if I were to set up another business”