Join our colleague Lera on her visit to Kenya and Uganda

Recently, I had the opportunity to travel to Kenya and Uganda with our CFO Daniel as a part of a due diligence trip. It’s a unique experience to meet the entrepreneurs we invest in and to see firsthand how our work is helping them grow their businesses.

At Lendahand, one of the ways we evaluate and select borrowers is by speaking directly with the financial institutions and their clients. Whenever possible, we visit a few randomly selected entrepreneurs to better understand the impact on the ground. 

On this short but insightful trip, we visited U&I Microfinance Bank in Kenya and Flow, a new borrower on our platform, in Uganda.

 

Destination: Kenya 

We boarded our flight from Amsterdam to Nairobi, a city close to my heart, as I used to live there before joining Lendahand three years ago. 

As we disembarked, we immediately headed to our first visit: U&I Microfinance Bank. 

With many branches across the country, U&I is one of Kenya’s leading financial institutions. They recently won three Think Business Banking Awards praising their growth, efforts in digital banking, and being the overall best microfinance bank in Kenya. We were welcomed by Benard and the team at their Gikomba branch. 

Across the street from the branch, you already see and hear the hustle and bustle from the Gikomba market. It is Kenya’s largest open-air market and hub for secondhand clothing where ten thousands of informal entrepreneurs work hard to come by every day. 

Many of them need financing to open and grow their businesses and can count on the support from U&I Microfinance Bank for that. 

 

Two years ago, we visited a couple of female entrepreneurs who receive financing from U&I. Read their stories here. 

 

First stop: Meeting Entrepreneur Robert

Robert has a contagious energy and is an entrepreneur with a sharp eye for opportunity. The small clothing stall he once started has now grown into different business ventures, thanks in part to the loan he received from U&I Microfinance Bank.

Robert trades in secondhand clothes, both locally and for export to Congo, manages a dairy farm upcountry, and organizes some events from time to time. His clothing business is the cornerstone. He sources high-quality bales from suppliers in the UK, China, and Canada, selecting them based on detailed packing lists and seasonal demand.

 “Quality is everything”, he told us. “It’s better to pay a little more if the product sells faster.”

With his loan from U&I, Robert was able to move his shop to a better location, which significantly boosted his customer flow. He’s built trust with U&I over the years with a spotless repayment record, which now allows him to access top-ups and more flexible loan terms when needed.

“Why wait to save up?” he said. “As long as the return exceeds the interest I use my loan to grow my business.” Trying to scale and reassessing opportunities are important to Robert, as his business creates jobs for people in his community and his income supports his family.

 

Second stop: Meeting Young Alfan

Alfan is chasing independence and he has a clear vision for how to get there: running his own matatu business. Matatus are colorful minibuses that double as affordable public transport in Kenya and often blast music to attract passengers. Alfan is already affiliated with a SACCO, a transport cooperative that helps drivers manage routes, vehicles, and day-to-day operations. 

To finance his first bus, Alfan turned to U&I Microfinance Bank. What convinced him to get a loan with them were the good loan terms at an affordable interest rate, and a straightforward process. 

For Alfan, this isn’t just about buying a bus. It’s about building a future on his own terms. He plans to drive his new bus on a route in Pipeline, a very busy area in Nairobi. Let’s hope he’ll be hitting the road soon!

 

Destination: Uganda 

After a couple of intense days in Kenya, we continued our journey to Uganda, where we met another inspiring (then potential) new borrower and some of their clients. 

Even though our schedule was tight, we made sure to include a visit to Flow, a fintech company in Uganda that plays a key role in supporting small businesses entrepreneurs working as mobile money agents. 

In many African countries, where traditional banking services are limited, people use mobile phones to send and receive money. Local agents help customers with these transactions, acting like a mix between a mini-bank and a telecom shop. These agents bridge an important gap in money transactions and the local economy. 

To make this happen, they need working capital, money on hand which they call ‘float’, to pay out withdrawals and top-up mobile money accounts for their customers. Flow offers these small entrepreneurs fast and flexible short-term loans so they can keep serving customers and grow their income.

Interested in learning more about the impact Flow is making? Have a look at their Impact Performance Report by 60_decibels.

 

Third stop: Meeting Mama Mildred

Together with Flow, we visited a market in Entebbe where we met Mildred. She’s a mother of three, whose husband works for the police. Mildred runs both a small convenience shop selling milk, sugar, soft drinks, and bread, and a local restaurant serving traditional Ugandan dishes.

Two years ago, a friend introduced her to Flow, which would allow her to offer commission-based mobile money services to her customers. 

Mildred decided to give it a try, and now sells mobile money floats for both major telecom providers in Uganda: MTN and Airtel. Mildred says: “MTN brings in more customers and offers me a slightly higher commission. I now manage around 40 transactions a day on each network.” 

With Flow’s fair rates and support, she earns a steady income on top of her shop and restaurant sales. She aims to upgrade to a higher float (money on hand plan) to meet the growing demand from her customers.

“Sometimes I have to turn people away when I run out of float,” she told us. “If I had more capital, I could serve more customers and earn more.”

Mobile money, float balances, top-ups,... these may be unfamiliar concepts in Europe, but they sure play a crucial role in everyday life across Africa!

 

Have a look at Flow’s YouTube Channel for more testimonials from their clients to see their product in action here. 

 

Next stop: Lendahand

We’re thrilled to welcome Flow as a new borrower on Lendahand, raising financing that will support many entrepreneurs like Mildred across Uganda. 

For me, this trip was especially meaningful. Having lived in Nairobi and now working closely with borrowers from our operational side at Lendahand, it gave me a new perspective on the lives behind the contracts and numbers. I hope these stories make you feel more connected to the real impact your investments are making too. 

Thanks for joining us on this journey and see you soon on Lendahand!