Welcome to Kaaba Microfinance Institution
Kaaba Micro finance Institution (K-MFI) is a financial service provider that strengthens the economic base of the the poor and the low-income groups in Somaliland- specifically women and youth. The purpose is to enable the targeted groups to become self-reliant and serve as agents of change.
K-MFI has been operating under its parent foundation known as Doses of Hope Foundation (DHF) - which is a non-profit foundation operating in Somaliland since 1998. DHF’s first microfinance project began in 1999 with 150 women, from 1999 to 2007 the microfinance project has directly reached out 7000 clients, and has indirectly benefited another 38,000 out of which 80% are low-income women. In partnership with Oxfam Novib DHF has in 2008 begun the transformation of its microfinance project into an independent microfinance institution now known as Kaaba Micro finance institution (K-MFI).
While building an MFI from zero is a remarkable achievement, being the only MFI until recently in a country with an unemployment rate of over 75% is a daunting task. Despite all the challenges and against all odds, which K-MFI has went through, the institutionhas managed tobuild itself from a microcredit project that started with 150 clients in 1999, to a microfinance institution that has served up to 14000 clients from 1999-2015. K-MFI has currently 6129 clients, thus contributing positively to the high unemployment rate of the country by creating self-employment opportunities.
Central to K-MFIs 2016-2019 strategy, is the transformation of K-MFI into a micro bank (Grameen style) in the midterm. The strategy entails: accessing finance to small and medium businesses, offer additional products and services, fund a larger volume of loans and access a stable and potentially cheaper local source of funds. Thus, greatly improving its ability to rapidly scale-up operations by deepening, and leveraging its equity bases, K-MFI’s ability to offer saving services to clients can also increase the number of clients served, improve client retention, loan repayments andwill improve governance of K-MFI. Furthermore, savings services will represent an important component of any household’s financial management strategy, providing access to savings services is a much more valuable service to poor people as the path out of poverty lies in building assets, not accumulating debt.