Julia Kurnia    May 10, 2012

Dear lenders,

I would like to offer an update on our efforts to recover the funds for Ms. Noonkipa's loan, which were stolen upon disbursement in December 2010.

When the loan was first reported stolen, we worked closely with the Deputy Head of the Criminal Investigation Department of the Kenyan police to investigate the alleged theft. The suspect in the case fled his village and went into hiding, and we paid an award to an individual who assisted the local police to track down the suspect and arrest him.

At this point, the theft case passed into the jurisdiction of the Kenyan court system, over which our police contacts have no direct influence. The suspect was released on bail following an initial trial. Since his release, several trials have been scheduled, and we arranged for the clients whose loans were stolen to travel to the court location to testify in the trials. Despite ample evidence of the theft from the M-PESA mobile phone payment transfer records, each time our clients arrived to testify, the trial ended inconclusively and was rescheduled. Our clients allege that the suspect is bribing the local court in order to avoid a conviction.

I have been speaking frequently with our contact in the Kenyan police Criminal Investigation Department regarding this case, but he is not able to influence the local court. We will continue to pursue the case to the best of our ability, and will inform lenders of any further progress.

Please do not hesitate to contact me at any time with questions or concerns.

Sincerely,

Julia Kurnia
Director, Zidisha Inc.
[email protected]

Julia Kurnia    Nov 3, 2011

Dear lenders,

Following the suspect's release on bail in September, we worked with the deputy head of the Kenyan police and the local police in Narok town to arrange for the affected borrowers to serve as witnesses at the trial which was scheduled to take place today, November 3, in Narok. We confirmed with the police in Narok on November 2 that the trial would indeed take place today, and two borrowers undertook the day-long journey to Narok to attend. When they arrived, they were told that the court had too heavy a caseload and would not be able to hold the trial today after all. The trial was rescheduled for January 25, 2012. The borrowers allege that the local law enforcement bureaucracy is being bribed to ensure the suspect is never effectively brought to trial.

We are lobbying the Kenyan police headquarters in Nairobi to use their authority to ensure more effective pursuit of this case at the local level, and will continue to keep you informed of new developments.

Please do not hesitate to contact me at any time with inquiries or comments.

Regards,

Julia Kurnia
Director, Zidisha Inc.

Julia Kurnia    Oct 3, 2011

Dear lenders,

I spoke today with the local Criminal Investigation Department officer in Narok town. He informs me that the suspect has been released on bail, and that the next hearing is scheduled for November 3. We intend to work with the borrowers involved to ensure that they will be present to testify at the trial.

The suspect has not responded to our offer of a settlement out of court in return for the full amount of loan funds that were stolen.

We are in constant communication with Kenya's Criminal Investigation Department regarding progress in the case, and will keep you informed of new developments.

You may contact me at any time with comments or inquiries.

Best regards,

Julia Kurnia
Director

Julia Kurnia    Oct 3, 2011

Dear lenders,

I spoke today with the local Criminal Investigation Department officer in Narok town. He informs me that the suspect has been released on bail, and that the next hearing is scheduled for November 3. We intend to work with the borrowers involved to ensure that they will be present to testify at the trial.

The suspect has not responded to our offer of a settlement out of court in return for the full amount of loan funds that were stolen.

We are in constant communication with Kenya's Criminal Investigation Department regarding progress in the case, and will keep you informed of new developments.

You may contact me at any time with comments or inquiries.

Best regards,

Julia Kurnia
Director

Julia Kurnia    Jul 28, 2011

Dear lenders,

We received an update from the Criminal Investigation Department office in Narok that the initial hearings were held this month, and that the trial is scheduled to resume on August 29. The suspect is still in custody, and has been well informed of Zidisha's offer to settle outside of court in exchange for return of the full amount of loan funds that were stolen. He has not yet given a definitive response to this offer. We are continuing to contact the Criminal Investigation Department regularly for updates, and will let you know when there are further developments.

In the meantime, please do not hesitate to contact me with any comments or inquiries.

Best,

Julia Kurnia
Director

[email protected]

Julia Kurnia    May 27, 2011

Dear lenders,

The suspect is still in custody, and his trial is scheduled to begin on July 7. The Criminal Investigation Department tells us that the Kenyan legal system does not provide for the seizure and restitution of stolen assets, even if the accused party is found guilty of their theft. We have been discussing with the suspect and his family a possible settlement out of court if the stolen funds are returned to Zidisha, and are currently awaiting their response.

We will continue to keep the affected lenders informed as the situation progresses. As always, please feel free to contact me at [email protected] with any questions or comments.

Best,

Julia Kurnia
Director

Julia Kurnia    May 9, 2011

Dear lenders,

Since the theft of loan funds was reported in January, we have been communicating details of actions taken by Zidisha, our partners in Kenya and the Kenyan police to the affected lenders by email due to the sensitive nature of the investigation.

Today, we received word from the Kenyan police's Criminal Investigation Department (CID) that they have finally arrested the suspect in a distant settlement of the Masai Mara, where he had been in hiding. The local CID officer who had been in charge of the investigation tells us that a preliminary hearing will take place tomorrow, and that the transaction records provided by M-PESA have yielded substantial evidence which will be used in the trial. The deputy head of the CID in Nairobi who has been overseeing the investigation confirmed that the suspect was arrested, but is not yet able to tell us whether it will be possible to recover the stolen funds.

This is all the news we have for the moment. We will communicate additional updates to the affected lenders as they become available.

Best regards,

Julia Kurnia
Director

Julia Kurnia    Jan 21, 2011

Dear lenders,

Ms. Noonkipa has reported that she did not receive the loan funds that were disbursed on December 30, because an intruder accessed her borrower account and changed her M-PESA account number (the mobile banking account number that is used to receive payment transfers) just before Zidisha disbursed her loan. If this is the case, the intruder would have had to collaborate with an M-PESA agent, as M-PESA requires proof of identification to ensure that accounts are opened under the owners' real names, and Zidisha checks that account numbers match borrowers' names before disbursing loan funds. The alleged theft is being investigated by the police in Kenya. Depending on the results of the investigation, the loan funds will either be disbursed again to this borrower, or returned to lenders.

We will report the police findings to all lenders who funded this loan. In the meantime, should you have any questions, please feel free to contact me at [email protected].

Thank you and regards,

Julia Kurnia
Director
www.zidisha.org

Siyomit    Nov 26, 2010

Hi my dear lenders,i would like to congratulate you for you are generous contributions.My business is doing good despite having some few difficulties like low tourist coming to visit Masai Mara.I would also want to honor you are real contribution. I hope things will go good and promise to be punctual and make some update as the officer in charge is assisting me to make update. Thanks and may the lord bless you!