Green Inclusive Finance
Welcome to Fortune Credit, a trailblazing microfinance institution on a mission to catalyze economic empowerment among Kenya’s rural population. Our commitment to offering tailored credit and insurance services is driving positive change across Africa, not only economically but also ecologically.
Our Vision and Drive for Impact
Founded in 2014, we envision a world of social-economic and ecological prosperity. We have remained unwavering in our dedication to providing innovative financial products and services that create both economic and social impact.
Addressing Kenya’s Climate Challenges
We are aware of the significance of our work as we operate in Kenya, a nation that faces the dual challenges of poverty and climatic vulnerability. The ND-GAIN 2020 rating places Kenya 149th out of 182 nations in terms of its susceptibility to climate change. It is crucial to address climate-related challenges since key economic sectors in Kenya, including agriculture, water, energy, tourism, wildlife, and health, depend on climate-sensitive industries.
Our Environmental Strategy: 2022-2027
We, at Fortune Credit, believe in leading by example. Our roles and responsibilities for environmental strategy implementation are well-defined. Led by a CEO who champions the green strategy, our committed team works tirelessly to achieve our environmental goals. All staff members share responsibility for creating a positive environmental impact.
Fortune Credit’s commitment to sustainability is embodied in our environmental strategy. This strategy, spanning from 2022 to 2027, focuses on three key objectives:
Objective No.1 – Transition to Clean Energy and Low Carbon Production: We provide loans for clean energy solutions and smart agriculture, including biodigesters and electric motorbike loans for young people.
Objective No.2 – Creating Resilience Among Customers: We offer index-based livestock insurance and savings for pastoralists through the World Bank’s DRIVE program. Additionally, we pilot other insurance products like area yield index insurance.
Objective No.3 – Managing Climate Risks:
Our digitalized appraisal process for loans and insurance products includes an activity assessment tool to identify environmental risks. We customize contracts to mitigate these risks when necessary.
Since February 2023, we’ve been actively ensuring the implementation of our environmental strategy through various measures:
- Setting targets for all departments, with a focus on quantitative targets for green product delivery.
- Training for existing and new staff members, including the Board.
- Client awareness sessions.
- Partnerships with technical experts to lower costs and enhance knowledge transfer.
- Technology integration for efficient data collection, analysis, and sharing
Environmental Data for Informed Decisions
We collect data on client vulnerability to weather threats, energy poverty, and water access. This data informs our product design and is expanding to cover our entire portfolio. We also assess potential side effects of our products on clients’ lives, examining the opportunity costs.
Transparency and Accountability
We believe in transparency and accountability. Fortune Credit regularly shares environmental data reports and engages in discussions with stakeholders, including the Board, investors, and employees. Our reports are released quarterly to the Board and investors and monthly to management.
Climate Change Projects and Partnerships
We collaborate closely with the government of Kenya, technical solution providers, national and international donors, and investors who share our vision for a sustainable future and better Africa. These partnerships drive our efforts to address environmental concerns and climate change.
A. Proud Participant in the DRIVE Program
We take great pride in being a part of the De-risking, Inclusion, and Value Enhancement of Pastoral Economies in the Horn of Africa (DRIVE) program. Launched in 2022, this groundbreaking initiative targets 250,000 households, representing 1.6 million pastoralists and their dependents in Kenya, Ethiopia, Somalia, and Djibouti. The project facilitates access to drought insurance, digital accounts, and increased private investment in pastoral areas, amounting to USD 572 million.
B. Anticipatory Aid for Climate Shock: Empowering Pastoralists Through Emerging Technologies
In collaboration with Mercy Corps Ventures, Shamba Network, and DIVA Technologies, Fortune Credit is taking a pioneering step in providing anticipatory aid for climate shocks. Pastoralist communities in Kenya’s Laikipia and Kajiado counties will benefit from smart contracts. These contracts ensure that aid is provided proactively when pasture conditions are deemed detrimental, based on the Normalized Difference Vegetation Index (NDVI).
This innovative program aims to reduce the impact of climate shocks on pastoralist communities by providing timely financial support when they need it most. It’s a testament to our commitment to sustainable development and the well-being of Kenya’s vulnerable populations.
C. ResilientGrowth: Emerging Technologies Based Product for Kenyan Farmers – Launched in March 2023
In a historic milestone, Fortune Credit, Ensuro, and Ibisa have joined forces to launch “ResilientGrowth,” a groundbreaking solution designed to address the urgent challenges faced by Kenyan farmers due to climate change. Launched in March 2023, this innovative product provides essential coverage to Kenyan farmers during the crucial seeding period when rainfall is vital.
“ResilientGrowth” leverages the power of emerging technologies to automate policy triggers and execute payouts efficiently. This approach significantly reduces operational costs and enables cost-effective microtransactions, making it both affordable for policyholders and profitable for providers.
Fortune Credit is spearheading the pilot program in Bungoma County, allowing farmers to secure loans to fund their warranties. These warranties can be activated through a unique code, and satellite monitoring ensures compensation is triggered if their land receives less rainfall than defined thresholds.
Coverage under “ResilientGrowth” is provided during specific periods when a lack of precipitation is considered a peril. Payouts are made based on the severity of the drought, ensuring that farmers receive support tailored to their specific circumstances.
This innovative product is set to revolutionize agricultural insurance in Kenya, offering transparency, efficiency, and affordability. It represents a significant step in our journey toward building a more resilient and sustainable future for Kenyan farmers.