Sha’ab Area in Somaliland
Kaaba Micro finance Institution’s (K-MFI) is a financial service provider that aims to strengthen the economic base of the low-income women and youth in Somaliland through loans and savings service. The institution offers different kinds of help and combines cost-efficient methodologies with a very high level of customer service.
K-MFI has been operating under Doses of Hope Foundation (DHF) a non-governmental development foundation operating in Somaliland since 1998. The first micro finance began in 1999 micro finance project with 150 women beneficiaries; from 1999 to 2007 the microfinance program has directly reached out 7000 beneficiaries, and has indirectly benefited another 38,000 out of which 80% are low-income women and youth. In partnership with Oxfam Novib, DHF has in 2008 begun the transformation of the microfinance program into an independent microfinance institution now known as Kaaba Micro finance institution (K-MFI).
The transformation process started with a seed capital of Euro 150,000 from Oxfam Novib and culminated in the legal existence of K-MFI as a separate organization with its own registration, management and structure in 2009. Since then K-MFI has gone through profound transformation and has accessed financial services to 5076 clients from 2010 & 2013 alone, which is more than double of its 2008 & 2009 of 1559 clients, thus fulfilling its overall objective to empower its clients economically, and to contribute positively to the high unemployment rate of the country through self-employment opportunities. K-MFI’s main goal is to provide financial services primarily to the low-income women and youth in Somaliland to become self-reliant and serve as agents of change in their respective communities.
Building on the success realized in the start-up phase (2008 &2009), the intermediate level, also financed by Oxfam Novib with a grant of Euro 220,000, focused on both geographic and number of clients’ expansion through set up of branches in the other regions of Somaliland. Currently K-MFI has 1 branch in Gabiely District financed by USAID, subject to availability of funds K-MFI plans to establish branches in all the regions of Somaliland depending on availability of Funds.
Furthermore, K-MFI has converted its conventional mode of micro financing to the Islamic mode of financing during the transformation period. Its successful pioneering of the Islamic banking principals in Somaliland’s is another important contribution to the financial sector of Somaliland.The establishment of (K-MFI) is based on this need to empower and support low-income groups both urban and rural to increase their income, become agents of change, and more importantly to balance the gender disparity and the power imbalances in Somaliland, which result from inequalities in the way society treats men and women.