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Daraja Guarantee

Guarantee products

What Daraja Guarantee structures and administers

This page describes only guarantee products implemented in the Daraja Guarantee platform as of the Kenya, Tanzania, and Liberia Year 1 pilot launch.

Daraja Guarantee is not a direct lender. All products on this page are guarantee instruments administered on behalf of DFI/funder partners. Actual credit is extended by licensed MFI partner institutions.

Facility structures

Two implemented facility types

First-Loss Default Guarantee

Live

Daraja Guarantee absorbs credit losses up to a specified first-loss tranche — typically 10–25% of the total facility. Common with development bank mandates requiring catalytic capital deployment.

Facility scope
Regional or country-level
Typical first-loss tranche
10–25% of facility
Funder role
Second-loss absorber
Claim status tracking
Submitted → Paid / Rejected

Mezzanine Guarantee

Live

The MFI partner absorbs first losses up to an agreed threshold; Daraja Guarantee absorbs the mezzanine (second-loss) tranche. Aligns MFI incentives while providing meaningful protection for larger loan sizes and longer tenors.

Facility scope
Regional or country-level
First absorber
MFI partner (skin-in-game)
Daraja Guarantee role
Mezzanine absorber
Typical use case
Larger loan sizes, longer tenor

Eligible borrower segments

Three loan categories — all implemented

SMELive

Small & Medium Enterprises

  • ·Business registration required (BRELA/eCitizen)
  • ·Bank statement analysis via document intelligence
  • ·AML watchlist screening at application
  • ·MFI partner matching on submission
  • ·Transparent rate disclosure enforced at origination
AgriculturalLive

Agricultural & Cooperative Finance

  • ·Cooperative / farmer group structures supported
  • ·Farm size, crop type, harvest month metadata
  • ·Flexible repayment schedules (seasonal alignment)
  • ·Impact indicators: income change, business growth
  • ·Country-specific coverage (TZ, LR launch)
Asset FinanceLive

Asset & Equipment Finance

  • ·Vendor and asset description captured at application
  • ·Invoice amount and lease terms documented
  • ·Asset serial number recorded for traceability
  • ·Suitable for equipment, vehicles, solar assets
  • ·Guarantee coverage at asset level

Platform capabilities

What the guarantee management system does

Guarantee utilisation tracking

Real-time tracking of facility usage. Immutable utilisation records — corrections go via audit log.

Claim lifecycle management

Claims move through: submitted → under review → approved → paid → recovery. Each transition audited.

Recovery recording

Recovery amounts against paid claims recorded and credited back to the partner ledger automatically.

PAR30 / PAR90 monitoring

Daily portfolio-at-risk snapshots stored as time-series. Alerts when PAR exceeds configured bounds.

Covenant monitoring

Automated covenant compliance checks on partner portfolios. Breaches flagged to investment committee.

Partner ledger

Running balance ledger per MFI partner tracking guarantee fees, claims deducted, and recoveries credited.

Regulatory export packages

IC-approved export packages for central bank submission. Full approval chain logged.

Funder portal

DFI-scoped view of their facilities, utilisation trend, and automated PDF reports with data snapshots.

Mobile money disbursement

In development

PawaPay integration for direct borrower disbursements in Kenya, Tanzania, and Liberia. Production credentials pending.

Interested in structuring a guarantee facility?

Our team works with DFIs and impact investors to design first-loss and mezzanine facilities suited to their capital mandate.

Talk to our teamMFI partnership