Introduction

K-Rep was founded in 1984 as an intermediary organization to address the financial, management and technical shortfall experienced by existing non-governmental organizations (NGOs) involved in small and micro-enterprise after a study conducted in 1983 to assess the institutional needs of NGOs by USAID.  At that time, USAID’s interest was to promote micro-enterprise development globally as means of poverty alleviation. 

Rural Private Enterprise Project

Starting as a five-year project, the ‘Rural Private Enterprise’ project, a private voluntary organization of the World Education Inc. based in Boston, with a strong focus on the development of small micro-enterprises in the rural areas, K-Rep provided 100% grants to other non-governmental organizations for on-lending to small and micro-enterprises.

Private Enterprise Project to WEREP to K-REP

K-Rep then entered into another five-year cooperative agreement with USAID in 1987 named ‘Private Enterprise Development’ (PED) project.  With a well-founded support from USAID, PED was registered as WEREP a Kenyan owned company limited by guarantee and with no share capital.  In 1992, WEREP changed its name to K-Rep, an abbreviation for Kenya Rural Enterprise Programme.

Change in Operations

PED facilitated the growth of the K-Rep Group since it provided K-Rep with an identity, authority and autonomy for making independent decisions with which K-Rep instituted several changes in its operations.  For example, K-Rep reduced its involvement with non-governmental organizations; changed its approach of providing 100% grants to non governmental organizations to 30%; made the non governmental organizations accountable for any funds given; adopted a minimalist approach by eliminating all other technical support other than those related to credit management; engaged in direct lending; developed in house training and indulged more in research activities.  Eventually, K-Rep ceased wholesale lending to other non-governmental organizations and concentrated on retail and direct lending.

K-Rep Activities

K-Rep activities were distinctly categorized into two divisions: financial and non financial divisions.

(i) The financial division dealt with both retail and wholesale lending, through the latter was ceased in 1994.  K-Rep financial division generated some income through interest rate earnings, which was ploughed back to the program.  K-Rep’s goal was not to maximize profits but to ensure sustainability.

(ii) The research and evaluation department monitored the performance of the credit program providing recommendations and policies.  Research was conducted to deeply understand the small and micro-enterprises operations and results used to expand the program.  Consulting services on the other hand involved extending advisory services to other organizations interested in designing, implementing and researching micro-enterprise related development activities.  The popularity and growth of consulting services stemmed from the wealth experience that K-Rep had gathered over many years. 

Today the financial division is now known as K-Rep Bank Limited, the first microfinance bank in Kenya.  The non-financial services division is now K-Rep Development Agency, the research and development arm. K-Rep Advisory Services Limited, the consulting and business development arm and K-Rep Fedha Services Ltd,offers management services to Financial Services Associations .