New Microfinance Bank Licensed in Kenya

Mar 2015
Kenya, March, 01 2015 - The Central Bank of Kenya (CBK) has granted a licence to Daraja Microfinance Bank Limited (Daraja MFB), making it the tenth microfinance bank in the country.

There are seven nationwide microfinance banks (Faulu Kenya MFB, Kenya Women MFB, SMEP MFB, REMU MFB, Rafiki MFB, Century MFB and SUMAC MFB) and two community-based MFB (Uwezo MFB and U&I MFB).

Daraja MFB is a Kenyan-owned company limited by shares and intends to operate within the Dagoretti Division, Nairobi County. The Bank has set up its head office and branch on Karandini Road, off Naivasha Road, Dagoretti, Nairobi County. The MFBs target market is micro and small enterprises (MSEs), and their owners and employees who reside or operate businesses in Dagoretti. Daraja MFB will also target salaried individuals and will offer them security free loans that will be deducted through the check off system.

Micro, small and medium enterprises (MSMEs), which represent over 90 per cent of private business and contribute to more than 50 per cent of employment and of GDP in most African countries, still remain a critical part of the economy, the Central Bank said. These enterprises provide employment opportunities and contribute to economic growth and sustainable development. Nevertheless, they face a number of challenges, including access to finance, which is often considered to be their most significant challenge.

CBK said that it has been in forefront in developing an all-inclusive financial system that reduces the impediments to accessing finance, including for MSEs, noting that it has initiated reforms to develop effective legal, regulatory and supervisory frameworks that support innovations to enhance the development of MSE financing and growth.

Source : CPI Financial

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