Meera Haji, Nurin Jamal, and Nadeem Nathoo wrote this case under the supervision of Fridah Theuri and Nicole Haggerty solely to
provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial
situation. The authors may have disguised certain names and other identifying information to protect confidentiality.
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Copyright © 2013, Richard Ivey School of Business Foundation

Version: 2013-04-16

As Johnson Kithendu sat in his office overlooking the bustling streets of Mombasa, he was troubled over
the current cash flow problems at Milango Financial Services (Milango). As the co-founder and a
shareholder of this microfinance institution, Kithendu had exhausted all his personal resources. To ensure
the long-term success of Milango, he now needed to look to an investor, local or international banks, or a
process improvement program. While the past three years had been a huge success, Milango was headed
toward the same path that had been followed by many other small microfinance institutions – many loan
applications, not enough capital to invest. With the next board meeting scheduled in two days, on June 15,
2012, Kithendu needed to evaluate his options and be ready to discuss them with the other board members.

Kenya is located in Eastern Africa and is bordered by Somalia to the east, Ethiopia and Sudan in the north
and Uganda and Tanzania in the south....

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