Kiva conducts regular, ongoing monitoring of all Lending Partners, but only posts status updates here in response to relevant, major changes at the partner.

Status update — August 10, 2016

TAHUDE's final loans with Kiva have ended or been defaulted, and Kiva's partnership with this organization is now closed. For the last 24 months, Kiva has been working with TAHUDE to try to recover the remaining outstanding amounts due to Kiva lenders. Kiva’s present assessment is that this Lending Partner is unwilling to make further payments, and thus the remaining $45,494 in outstanding amounts due to Kiva lenders has now been defaulted. If Kiva is able to recover any additional funds, they will be applied to lenders' accounts on a pro-rata basis.

Status update — April 1, 2015

Kiva has decided to pause TAHUDE's access to fundraising loans on the Kiva platform. Due to challenges posed by the fluctuating exchange rate, this organization has been unable to repay Kiva lenders in full for repayments made by Kiva borrowers. Kiva is actively monitoring TAHUDE's evolving financial situation and will continue to follow up with the partner in an effort to recover payments due. We will provide additional relevant information to lenders as it becomes available.

Partner Description:

Tanzania Human Development Foundation (TAHUDE) is a non-profit organization that aims to tap into the different talents of men and women in Tanzania to effect positive changes in the lives of other people. Founded in 2010, its current activities are aimed to promote renewable energy distribution such as solar power and biogas, community development, women empowerment, microfinance, children education, environmental conservation and more.

Non-grid energy solutions force Tanzanians to spend over $500 million per year on hazardous kerosene for lighting. Households spend approximately ten percent of their incomes on basic energy services - a substantial amount for many low-income Tanzanians. The overwhelming dependence on biomass for meeting basic cooking and heating needs is a major cause of poverty in Tanzania. It also causes deforestation and soil degradation due to charcoal production and the use of woodfuels.

TAHUDE’s clients are solely depending on wood and charcoal for cooking, kerosene for lighting, etc. That is why the organization is promoting green energy use to reduce deforestation, carbon dioxide emission and more.

After two years of operating its loan program, TAHUDE realized that clients are not able to finance some of their most desired projects, in particular, the installation of biogas systems, due to the inability to raise sufficient savings. The cost of one biogas system with the Government subsidy is about $625. Kiva’s flexible loan terms will allow clients to borrow the money they need to build biogas systems to enhance their quality of life and provide clean energy for their families.

A unique lending approach:

TAHUDE works with people in rural areas because they are generally neglected by traditional financial institutions. These are the marginalized majority. They have some resources like farms and livestock, but they cannot afford to accumulate a reasonable amount of capital for significant investment. The organization provides loans for agriculture, health and consumption depending on clients’ needs.

At present, one of the most successful TAHUDE endeavors is its Microfinance Program. It provides small loans of approximately US$800 and up to groups of people, the majority of whom are women. The loans are also given to individuals, provided that they fulfill the loan agreement: they have to sign the agreement form and be guaranteed by four other members in a group of up to 30 people.

Each group of 30 borrowers has a leadership team: chairperson, secretary, and treasurer. Clients have to register with TAHUDE Foundation Microcredit and raise savings that will enable them to borrow three times the amount they saved.

In addition, TAHUDE Foundation has been working with Primary Schools for Africa (a Canadian NGO) to support early education in Karatu, Tanzania. Within this partnership, the organization receives computer donations from Korea and distributes them to children at schools. It also works with Kiboko Impex Limited to distribute affordable solar systems to rural communities in Karatu. The Kiboko Impex Company gives flexible solar loans with long repayment terms.

TAHUDE joined Kiva through our Experimental Partnership Program, and has therefore received a lighter level of due diligence. Accordingly, loans associated with this partner carry a higher level of risk than typical Kiva loans.