Question 1

What is Kaebauk Investimentu no Finansas (KIF)?

Accepted Answer

Kaebauk Investimentu no Finansas (KIF) is a licensed deposit-taking financial institution in Timor-Leste. It is the country's largest microfinance institution and one of the largest private sector employers in Timor-Leste. KIF specializes in providing microfinance and financial services to poor entrepreneurs, underserved communities, and rural populations across all 13 municipalities of Timor-Leste.

As of recent reports, KIF serves over 14,000 clients through more than 20 branches nationwide. The institution focuses primarily on rural areas, with the goal of providing financial inclusion to populations that lack access to traditional banking services.

Question 2

When was Kaebauk Investimentu no Finansas (KIF) founded?

Accepted Answer

Kaebauk Investimentu no Finansas was officially established on August 24, 2016, when it received its license as an Other Deposit-Taking Institution (ODTI) from the Banco Central de Timor-Leste (BCTL). However, its origins trace back to 2001 when it began operations as Tuba Rai Metin (TRM), a non-licensed microfinance institution.

The TRM microfinance program was initially supported by the U.S.-based NGO Save the Children in 2001 to improve the livelihoods of women and poor families. In 2002, management was transferred to Catholic Relief Services (CRS), which registered the program as an MFI under the brand Tuba Rai Metin, meaning "stand firmly on the ground" in Tetum. In 2016, TRM transformed into the licensed financial institution Kaebauk Investimentu no Finansas, transferring all business operations effective March 1, 2016.

Question 3

Where is Kaebauk Investimentu no Finansas (KIF) headquartered?

Accepted Answer

Kaebauk Investimentu no Finansas is headquartered in Dili, the capital city of Timor-Leste. Dili is located on the northern coast of the country and serves as its administrative and economic center.

Question 4

Where does Kaebauk Investimentu no Finansas (KIF) operate?

Accepted Answer

KIF operates throughout Timor-Leste, with a presence in all 13 municipalities of the country. The institution maintains over 20 branches nationwide, with the majority located in rural areas.

This extensive rural coverage makes KIF unique, as approximately 85% of Timor-Leste's population lives in areas not currently served by commercial banks. KIF's mission centers on reaching these financially excluded rural populations and providing them with access to formal financial services.

Question 5

What services does Kaebauk Investimentu no Finansas (KIF) offer?

Accepted Answer

KIF offers a comprehensive range of financial services tailored to microentrepreneurs and low-income populations:

Lending Products: Microloans for business purposes, agricultural financing for farmers and agri-enterprises, and working capital loans. The average loan size is approximately $1,100.

Savings Products: Deposit accounts and savings mobilization services for individuals and communities.

Money Transfer Services: Domestic and international remittance services to facilitate financial transactions.

Other Services: Financial literacy training, business advisory support, and insurance products to help clients manage risk and improve their financial management skills.

More than 70% of KIF's customers are women, reflecting the institution's commitment to women's economic empowerment.

Question 6

What makes Kaebauk Investimentu no Finansas (KIF) unique?

Accepted Answer

KIF stands out as the only licensed financial institution in Timor-Leste that provides comprehensive services in rural areas. While commercial banks operate primarily in urban centers, KIF has built its entire network to reach remote communities.

The institution has pioneered a "farming to finance" model that assesses farmers' monthly cashflows from crops when making lending decisions, rather than relying solely on traditional collateral requirements. This innovation has expanded access to credit for full-time farmers who previously lacked formal financial services.

KIF is jointly owned by local entities (TRM and Assosiasaun TURAME) and international development institutions (IFC and BOPA), creating a unique public-private partnership focused on social impact. With over 290 Timorese employees, KIF is committed to local employment and capacity building.

Question 7

What type of financial institution is Kaebauk Investimentu no Finansas (KIF)?

Accepted Answer

Kaebauk Investimentu no Finansas is classified as an Other Deposit-Taking Institution (ODTI) under Timor-Leste's financial regulatory framework. This designation allows KIF to accept deposits from the public and provide lending services.

As an ODTI, KIF is regulated by the Banco Central de Timor-Leste (BCTL) and must comply with regulatory reporting requirements, capital adequacy ratios, and liquidity standards. The institution operates as a microfinance institution (MFI) with a specific focus on serving poor entrepreneurs and underserved communities in a sustainable, transparent, and regulated manner.

Question 8

What is Kaebauk Investimentu no Finansas (KIF)'s mission?

Accepted Answer

KIF's mission is to provide microfinance and allied services to a large number of poor entrepreneurs and underserved communities in a sustainable, transparent, and regulated manner. The institution aims to improve the quality of life for families and empower women throughout Timor-Leste.

KIF's vision is to become Timor-Leste's most trusted and accessible financial institution. The organization believes in the philosophy of financial inclusion, extending financial services to unbanked customers to support poverty alleviation and provide clients with opportunities to establish better lives.

Question 9

Who are Kaebauk Investimentu no Finansas (KIF)'s international partners?

Accepted Answer

KIF has established partnerships with several major international development finance institutions. The International Finance Corporation (IFC), a member of the World Bank Group, has been working with KIF since 2013 and provided a $5 million loan facility in 2020 to expand agricultural financing.

The U.S. International Development Finance Corporation (DFC) provided a $3 million direct loan to support KIF's expansion of lending to rural borrowers and microenterprises. Additionally, the IFC's investment includes concessional financing from the International Development Association's Private Sector Window (IDA PSW), making KIF's first investment in Timor-Leste's microfinance sector with development finance support.

These partnerships provide KIF with access to long-term capital, technical assistance, and expertise in microfinance best practices.

Kaebauk Investimentu no Finansas (KIF)

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About Kaebauk Investimentu no Finansas (KIF) in Timor-Leste

Kaebauk Invest­imentu no Finansas (KIF)