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A Service Delivery Model (SDM) Case Study: Musoni, Kenya

SDGs Impacted

Musoni Microfinance Ltd (Musoni), is a Kenyan based microfinance institution established in 2010. Musoni prides itself as a completely cashless microfinance institution and a pioneer in the digital lending space. It enables customers to receive and repay their loans via Safaricom’s M-PESA system. Musoni has rapidly grown, with an extended network of 37 branches across Kenya and an expanding client base. It seeks to create financial and social impact for women, youth and smallholder farmers through its broad portfolio of flexible lending products. One such product is the Kilimo Booster loan, which is a product specifically for smallholder farmers, with flexible terms and a customizable grace period based on a farmer’s seasonal cash flow. One interesting thing about Musoni is that the User Interface (UI) was developed with Apache Fineract, a Digital Public Good (DPG) that provides a reliable, robust, and affordable solution for entrepreneurs, financial institutions, and service providers to offer financial services to the world’s 2 billion underbanked and unbanked.

Impact / Outcome
Musoni has had considerable success in growing its business and extending its impact, serving more than 30K farmers in 2019. Reached 31k farmers, of which 22k female and 11k youths. Disbursed 106k loans equivalent to approximately $18m. Disbursed 32k Kilimo loans, of which 23k went to women.
Funding sources
Private
Key Metrics
Create financial and social impact for women, youth and smallholder farmers through its broad portfolio of flexible lending products
Locations
Africa, Kenya
Sector
Financial services
Intervention lever
Indirect government
Operating model
Fully private
Target populations
Women & girls, Youth, Rural
Year published
01 January 2021
Organization involved
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IDH

The EDISON Alliance

A World Economic Forum Initiative