Many Kenyans do not have bank accounts. Those who have bank accounts either have little or no savings. This makes it hard for them to access loans from the banks. For this reason, Microfinance Institutions in Kenya play a vital role.
Microfinance Institutions in Kenya offer small (micro) loans to customers who can not access conventional financial aid from banks. The nature and functioning of these institutions vary depending on the purpose and targeted groups. Some microfinance Institutions in Kenya are based on gender and strictly offer microfinancing services.
Although Microfinance Institutions in Kenya are an alternative to banks, some operate as extensions of large investment banks. People living in under-developed regions can access funding from the banks through the Microfinance Institutions run by the banks.
I have prepared a list and brief description of the Microfinance Institutions in Kenya in this article. Also, I have highlighted the conditions for Microfinance Institutions operating within Kenya.
List of Microfinance Institutions in Kenya
Here is a list of Microfinance Institutions operating within Kenya,
1. Kenya Women Finance Trust (KWFT)
KWFT is one of the oldest and most popular microfinance institutions in Kenya. The Institutio was licensed to operate by the Central Bank of Kenya in 2010. Currently, it is the largest Deposit-taking microfinance institution in Kenya.
With over 600,000 customers and 231 branches throughout the country, KWFT offers savings and loan services to all women and girls. It stands to be one of the Institutions that has embraced mobile money in Kenya, as customers can make deposits through Mpesa.
You can reach KWFT through their line at 0703067700 or write them an email at [email protected]. Also, you can write a letter through their postal address, 4179-00506, Nairobi, or physically visit their office headquarters at Akira House in UpperHill Nairobi or any of their branches nearest branches to you.
2. Faulu Microfinance
Faulu is another big deposit-taking microfinance institution. Currently, it is the leading institution when it comes to giving microloans. Fauli Microfinance has branches scattered all over the country to access customers. Also, with Faulu, customers can deposit their accounts through Mpesa.
Loans from Faulu are easily accessed. The loans are processed within 24hours, and the interest rates are amicable. One can perform transactions on Faulu at any Faulu branch, Faulu agent, or ATM within the country.
Faulu headquarters is located along Ngong Lane, off Ngong Road in Nairobi. Their contact areas are listed below.
Tel: +254203877290/3/7; 3872183/4; 3867503
Email: [email protected]
3. Choice Microfinance Bank Limited
This is one of the most prominent Community-based Microfinance Institutions. The Choice Microfinance headquarters is located in Rogai Kajiado county. The institution offers services such as loans and savings.
Examples of savings on Choice Microfinance are the Faidikeni Fixed deposit account and the Asset Mali account. Just like Faulu, one can make deposits on Choice through Mpesa.
Choice Microfinance started linking people in the diaspora with local investment opportunities. This was through providing small business loans, which locals can use to start small business enterprises.
below are the contacts of Choice microfinance
Tel: +254203882206/ +254203882207
Email: [email protected]
4. Uwezo Microfinance Bank
Uwezo Microfinance provides both loans and savings services. The Institution offers short-term loans at flexible interest rates. The goal of Uwezo is to facilitate wealth creation and better living standards for individuals, small groups, or SMEs.
Farmer loans from Uwezo are the best option in the market for those who want to venture into agriculture.
Uwezo Microfinance can be accessed through the following contacts.
Tel: +254202212919
Mobile: 0752600619
Email: [email protected]
5. Musoni Microfinance Institution
This is one of the youngest Institutions on the market. The letter “M” in Musoni stands for Mobile since the institution is centered around Mobile banking. Currently, it stands as the most paperless Microfinance institution on the market.
With Musoni, there are no hidden charges when registering. On loan applications, the loans are processed within 72 hours and deposited into your account.
Here are the Musoni contacts.
Tel: +254202609355/ 2166007
Email: [email protected]
6. Rafiki Microfinance Bank
Rafiki Microfinance is one f the few MFIs that offer diaspora banking, savings, and loan services. This institution provides affordable asset finance and loans for chamas and SACCOs.
Rafiki MFI offers the best loans through the Kilimo Biashara account for those in agriculture. Below are Rafiki’s MFI contacts.
Tel: 0730170500
Email: [email protected]
P.O Box 12755-00400 Nairobi
7. Momentum Credit
This is a new MFI on the market. The institution was founded in March 2017 but had a vast customer base which is steadily increasing. Momentum Credit aims to provide for the overwhelming demand for capital to SMEs and individuals.
Here are the contacts for Momentum Credit
Tel: +254796444555/ +254709434000
Email: [email protected]
8. Century Microfinance Bank
Just like other MFIs, Century offers savings and loan services to customers. However, this MFI specializes in agribusiness loans.
Deposits to Century are made through Mpesa, and customers get the loans directly to their accounts within a brief period.
Here are the contacts for Century in case you want to find out more.
Tel: 0722168721/ 0756305132
Email: [email protected]
Microfinance Institutions in Kenya provide the youth with opportunities to achieve financial freedom. However, I advise that one should strictly use the money borrowed from MFIs for the intended purpose, which is income generation. This is because the borrowed money has to be repaid at interest.
Conditions For Microfinance Institutions In Kenya.
Eligibility
Different Microfinance Institutions in Kenya use different criteria to determine those eligible for funding. In most cases, eligibility is based on gender and age. This means some microfinance Institutions offer loans to special groups such as underprivileged women.
To access such services, one must be a Kenyan citizen of 18 years and above. one will also assess your ability to repay the loan and remain a customer of the institution.
Interest rates
In most cases, interest rates on Microfinance loans are based on a flat rate. However, some loan interests are calculated on a decreasing balance. A majority of Microfinance Institutions In Kenya insist on a monthly repayment system.
The Interest on loans varies between 30% and 40% for loans not exceeding Ksh.500,000. For loans above Ksh. 500,000, and the interest rate extends up to 70%.
Credit scoring
Most Microfinance Institutions in Kenya do not have a system for analyzing credit scores. However, some insist that you must have an operational business for about three months and some cash in your account to get the credit. You must also provide a good business plan and have at least one guarantor.
Many Microfinancing Institutions use mobile money services such as Mpesa to ease customers’ access to credit. Also, the use of mobile transactions helps minimize cases of fraud within the institutions.
