Multiple Kenyans do not have bank accounts. Those who have bank accounts either have small or no savings. This makes it difficult for them to access loans from the banks. For this explanation, Microfinance Institutions in Kenya play a crucial role.
Microfinance Institutions present small (micro) loans to clients who can not access conventional economic aid from banks. The nature and functioning of these organizations vary depending on the purpose and targeted groups. For example, some institutions are established on gender and precisely offer microfinancing services.
Although they are recourse to banks, some perform as extensions of large buy banks. Individuals living in under-developed areas can access the banks’ funding via these Institutions run by the banks.
List of Microfinance Institutions in Kenya
Here is a list of Microfinance Institutions working within Kenya,
1. Kenya Women Finance Trust (KWFT)
KWFT is one of the most senior and most popular in Kenya. The institution was licensed to work by the Central Bank of Kenya in 2010. Presently, it is the biggest Deposit-taking microfinance organization in Kenya.
With over 600,000 clients and 231 branches throughout the nation, KWFT offers savings and loan assistance to all women & girls. It stands to be 1 institution that has assumed Mobile Money in Kenya as clients can make deposits through Mpesa.
You can reach KWFT via their line 0703067700 or write them an email at [email protected] You can also write a missive through their postal address, 417900506, Nairobi, or physically stay their office headquarters at Akira House in UpperHill Nairobi or any of their branches nearest to you.
2. Faulu Microfinance
Faulu is another big deposit taking microfinance organization. Currently, it is the leading organization when it comes to giving microloans. Faulu has departments scattered all over the nation to access customers. Also, with Faulu, clients can make deposits to their accounts via Mpesa.
Loans from Faulu are readily accessed. The loans are processed within 24hrs, and the good rates are amicable. Similarly, one can perform commerce on Faulu at any Faulu department, Faulu agent, or ATM within the country.
Faulu headquarters is found along Ngong Lane, off Ngong Road in Nairobi.
3. Choice Microfinance Bank Limited
This is one of the most well-known Community-based Microfinance Institutions. The Choice office is located in Rogai Kajiado county. The institution offers benefits such as loans and savings.
An instance of Choice Microfinance’s protection is the Faidikeni Fixed deposit account and the Asset Mali account. Just like Faulu, you can complete deposits on Choice through M-pesa.
Choice Microfinance was started to link individuals in the diaspora with local investment prospects. This was through delivering small business loans that residents could use to make small business enterprises.
4. Uwezo Microfinance Bank
Uwezo Microfinance delivers both loans and savings services. The institution offers short-term loans at adjustable interest rates. The objective of Uwezo is to facilitate wealth innovation and better living standards for people, small groups, or SMEs.
For those who want to embark into agriculture, the Grower loans from Uwezo are the best alternative in the market.
5. Musoni Microfinance Institution
This is one of the most youthful Institutions on the market. The letter “M” in the title Musoni stands for Mobile since it is centered around Mobile banking. Presently, it stands as the most paper-less Microfinance organization on the market.
With Musoni, there are no concealed charges when reporting. The loans are processed within 72 hrs and deposited into your account on loan applications.
6. Rafiki Microfinance Bank
Rafiki Microfinance is one of the few MFIs that present diaspora banking, savings, and loan assistance. In addition, this institution supplies affordable asset finance loans for champs and SACCOs.
Rafiki MFI offers the great loans through the Kilimo Biashara account for agriculture. Below are Rafiki MFI contacts.
This is new MFI on the market. The organization was founded in March 2017 but had a vast client base steadily increasing. Velocity Credit aims to provide SMEs and individuals with the overwhelming need for capital.
9. Century Microfinance Bank
Just like other MFIs, Century suggests saving and loan services to customers. Nevertheless, this MFI specializes in agriculture loans.
Deposits to Century are made via Mpesa, and clients get the loans straight to their accounts within a brief period.
These organizations provide the youth with chances to achieve financial freedom. Nevertheless, I advise that you should exactly use the money borrowed from MFIs for the deliberate purpose, income generation. This is because the borrowed funds has to be repaid at an interest.
Conditions For Microfinance Institutions In Kenya.
Different Organizations use different criteria to determine those eligible for funding. In most circumstances, eligibility is based on gender and age. This means some microfinance Organizations offer loans to special groups such as disadvantaged women.
To access such usefulness, they require one to be a Kenyan citizen of 18 years and above. They will also consider your ability to repay the loan and remain an institution customer.
In most cases, inquisitiveness rates on Microfinance loans are based on a flat rate. Nevertheless, some loan interests are calculated on a decreasing balance. A plurality of the Institutions insist on a monthly compensation system.
The Interest on the loan ranges between 30% & 40% for loans not exceeding Ksh.500,000. For loans exceeding Ksh. 500,000, the interest rates expand up to 70%.
Most of them do not have a procedure for analyzing credit scores. However, some demand that you must have an operating business for about three months and some money in your account to get the credit. You also need to deliver a good business plan and have at least one guarantor.
Considerable Microfinancing Institutions are presently using mobile money assistance such as M-pesa to ease customers’ key to credit. Also, the use of mobile dealings helps minimize cases of deception within the institutions.