The verdict in three sentences
For a microfinance institution with 18,000 clients in Kampala, a custom loan management module costs USD 33,000 to 83,000 excl. VAT (about 20 to 50 million FCFA) depending on scope (scoring, field tablets, accounting interfaces, regulatory reports). The financial lever is PAR 30, which can fall from 9% to 5% when reminders and field visits are driven by the software. Cutting disbursement from 10 days to 48 hours is often enough to win back clients lost to faster competitors.
What the budget covers, line by line
A microfinance institution does not buy an improved spreadsheet. It buys a full chain: loan application captured in the field, analysis, credit committee, disbursement, schedule, collection and regulatory reporting. Here is the 2026 order of magnitude for a mid-sized MFI.
| Module | Scope | Budget excl. VAT (USD) | Timeline |
|---|---|---|---|
| Loan core | Products, schedules, penalties, rescheduling | 10,000 to 20,000 | 8 to 10 weeks |
| Credit scoring | Rating grid, history, limits by profile | 5,000 to 13,000 | 4 to 6 weeks |
| Field officer app | Offline Android tablet, photos, geolocation | 7,000 to 17,000 | 6 to 8 weeks |
| Committee and workflow | Multi-level approval, delegated authority | 3,000 to 8,000 | 3 to 4 weeks |
| Regulatory reporting | Periodic returns, prudential ratios, exports | 5,000 to 15,000 | 4 to 6 weeks |
| Mobile payments | MTN MoMo and Airtel Money repayments, reconciliation | 3,000 to 10,000 | 3 to 5 weeks |
| Total | Full scope | 33,000 to 83,000 | 5 to 8 months |
The low end is a project that reuses the existing accounting software and stays on the loan core with simple scoring. The high end includes a rich field app, mobile money integration and automatically generated regulatory returns. Add 10 to 15% per year for maintenance and secure hosting.
Custom build, packaged software or regional SaaS: the comparison
The head of operations usually weighs three options. The decision depends mostly on how flexible the loan products are and on per-user licence costs.
| Criterion | International package | Regional SaaS | Custom build by Kolonell |
|---|---|---|---|
| Upfront cost | USD 58,000 to 133,000 | USD 8,000 to 20,000 | USD 33,000 to 83,000 |
| Annual cost | 15 to 25% of licence | USD 2.50 to 5 per active client | 10 to 15% maintenance |
| Product flexibility | Limited configuration | Low | Full |
| Offline field app | Often a paid option | Varies | Included |
| Regulatory returns | Generic, need adapting | Partial | Built for your returns |
| Code ownership | No | No | Yes |
| 5-year cost (18,000 clients) | USD 133,000 to 233,000 | USD 233,000 to 450,000 | USD 50,000 to 125,000 |
Per-client SaaS looks cheap in year one, then becomes the most expensive option as the portfolio grows. Custom software needs heavier upfront investment but stays predictable.
Measurable gains to track
| Indicator | Before | After 12 months (estimate) |
|---|---|---|
| PAR 30 | 9% | 5% |
| Disbursement time | 10 days | 48 hours |
| Files handled per officer per month | 35 | 55 |
| Time to prepare regulatory returns | 6 days | 1 day |
| Repayment entry errors | 4% | under 0.5% |
| Share of repayments via mobile money | 12% | 40% |
PAR drops because the software raises an alert on the first day of arrears, schedules the officer's visit and sends an SMS reminder with a mobile payment link.
Mini case study
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Grace, head of operations at an MFI in Kampala, manages an outstanding portfolio of USD 7 million (about 4.2 billion FCFA). With PAR 30 at 9%, roughly USD 630,000 is at risk. Bringing the ratio to 5% restores USD 280,000 of healthy portfolio. If only 20% of that improvement avoids a final write-off, savings reach USD 56,000, which covers a USD 58,000 project in just over a year, before counting new clients won through 48-hour disbursement.
FAQ
How long does it take to migrate loan history?
Allow 3 to 6 weeks to import 5 years of history and 18,000 client files. Migration runs in two passes, with outstanding balances reconciled to the cent before go-live.
Does the field app work without network?
Yes, officers capture data offline and sync as soon as 3G returns. An entry-level tablet at about USD 150 is enough.
Does the software produce the central bank returns directly?
Periodic returns and prudential ratios are generated from the loan core data. Preparation time drops on average from 6 days to 1 day per period.
Can we collect repayments through mobile money?
Yes, MTN MoMo and Airtel Money integration costs USD 3,000 to 10,000 and automatically matches each payment with the right instalment. In francophone West Africa the same module works with Wave and Orange Money.
How is client data protected?
Encrypted hosting, an audit log of every action and role-based access. A penetration test at about USD 5,000 is recommended before production.
Let's scope your project. Send us your client count, loan products and regulatory returns: we will price a scope between USD 33,000 and 83,000 with a 5 to 8 month plan. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
