Microfinance Institutions in Kenya. Since the mid-90s, microfinance institutions, as well as their regulations, have undergone significant developments. In 2006, legislation with the Microfinance Act was passed, which was to become active later on in 2008. This legislation was critical to the industry, and by 2010, 24 microfinance institutions had already been established, with the number of active borrowers going way over 1.5 million. The institutions have been instrumental to small and medium enterprises in the country, helping many entrepreneurial Kenyans start and develop their own businesses. List of Microfinance Institutions in Kenya That Give Small Loans
Here is a list of Microfinance institutions in Kenya that give small loans. Microfinance is a financial service that offers small loans to individuals and entrepreneurs who don’t have access to conventional banking and other affiliated services.
Microfinance institutions in Kenya are licensed by the CBK (Central Bank of Kenya) and regulated under the Microfinance Act (2006).
In section 3 of the Microfinance Act, we have 2 types of Microfinance institutions:
- Deposit-taking Microfinance Institutions
- Non-deposit taking Microfinance Institutions
However, today we are going to share a list of Microfinance institutions in Kenya that lend small loans. In case you are in need of small loans, you can approach them.
List of Microfinance institutions in Kenya That Give Small Loans
1. Kenya Women Microfinance Bank
Kenya Women Microfinance Bank, formerly Kenya Women Finance Trust or KWFT, is a deposit-taking microfinance bank in Kenya, the largest economy in the East African Community. KWFT is one of the oldest and most popular in Kenya. The institution 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 institution that has embraced Mobile Money in Kenya as customers can make deposits through Mpesa.
KWFT Headquarters, Akira House,
Kiambere Road, Upper Hill
P.O. Box 4179 – 00506 Nairobi
Nyayo Stadium, Nairobi
24 hrs Customer Care Number: 0703 067 700
Hot Line: 0703 067 000
Airtel: 0730 167 000
Email: info@kwftbank.com
Website: www.kwftbank.com
2. Faulu Kenya
Faulu Kenya Headquarters, Off Ngong Road, City square
Ngong Lane
P.O Box 60240-00200 Nairobi
Nairobi, Kenya.
Hot Line : +254 711 074 000 or +254 711 074 074
Email: info@faulukenya.com
Website: www.faulukenya.com
3. Key Microfinance Bank
Key Microfinance Bank Headquarters, Finance House, Loita Street
Hot Line: +254 724 449 288 or +254 733 553 555
Email: info@kenyamicrofinancebank.com
Website: www.kenyamicrofinancebank.com
4. SMEP Microfinance Bank
SMEP Microfinance Bank Headquarters, SMEP Building, Kirichwa Road, Off Argwins Kodhek Road
P.O Box 64063 – 00620 Nairobi
Hot Line: 020 3572799/26733127
Email: info@smep.co.ke
Website: www.smep.co.ke
5. Uwezo Microfinance Bank
Uwezo Microfinance Bank Headquarters, Park Plaza Building, Ground Floor, Moktar Daddah Street
P.O Box 1654 – 00100 Nairobi
Hot Line: 2212917 / 9
Website: www.uwezodtm.com
6. Rafiki Microfinance Bank
Rafiki Microfinance Bank Headquarters, 2nd Floor, El-Roi Plaza, Tom Mboya Street
P.O Box 12755 – 00400 Nairobi
Hot Line: 0202166401 or 0734 000 323/ 0719 804 370
Website: www.rafiki.co.ke
7. U&1 Microfinance Bank
U&1 Microfinance Bank Headquarters, 1st Floor, Asili Complex, Off River Road, Latema Rd, Nairobi
P.O Box 15825 – 00100 Nairobi
Hot Line: 0713 112 791
Email: info@uni-microfinance.co.ke
Website: www.uni-microfinance.co.ke
8. Caritas Microfinance Bank
Caritas Microfinance Bank is licensed and regulated by the Central Bank of Kenya.
Ground floor, Cardinal Otunga Plaza, Kaunda street.
P. O Box 15352 – 00100. Nairobi.
+254 (0)20 515 1500, +254 (0)72 998 6331
Email : info@caritas-mfb.co.ke
Website : https://caritas-mfb.co.ke/
9. Musoni Microfinance Institution
This is one of the youngest Institutions on the market. The letter “M” in the name Musoni stands for Mobile since it is centered around Mobile banking. Currently, it stands as the most paper-less 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.
10. Century Microfinance Bank
Century Microfinance Bank is a microfinance institution that specializes in providing financial services to micro, small and medium businesses at large. We were licenced by the Central Bank of Kenya as a deposit taking microfinance institution on 19th September 2012 to provide a full range of financial services such as savings account and credit facilities.
Century has over 26,000 clients.
HEAD OFFICE
Bihi Towers, 8th Floor, Moi Avenue
Nairobi, Kenya
P.O Box 38319-00623 Nairobi
Line 1: +254 756305132
Line 2: +254 722168721
Email: info@century.co.ke
11. Momentum Credit
This is a new MFI on the market. The institution was founded in March 2017 but has a huge customer base that is steadily increasing. Momentum Credit aims to provide for the overwhelming demand for capital to SMEs and individuals. https://momentumcredit.co.ke/
12. Choice Microfinance Bank Limited
This is one of the biggest Community-based Microfinance Institutions. The Choice headquarters is located in Rogai Kajiado county. The institution offers services such as loans and savings.
An example of Choice Microfinance’s savings is the Faidikeni Fixed deposit account and the Asset Mali account. Just like Faulu, deposits on Choice can be made through Mpesa.
Choice Microfinance was started to link people in the diaspora with local investment opportunities. This was through providing small business loans with which locals can use to create small business enterprises.
Conclusion
Although we have highlighted Microfinance institutions in Kenya that give small loans, it is good to note that there are other companies that also give the same type of loans. The Interest on the loan varies between 30% and 40% for loans not exceeding Ksh.500,000. For loans above Ksh. 500,000, the interest rates extend up to 70%. Many Microfinancing Institutions are currently using 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.
