List of Leading Microfinance Institutions in Kenya 2023 - Daily Kenya

List of Leading Microfinance Institutions in Kenya 2023

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A Microfinance institution is established to enable people to offer small loans to customers who are not able to access them through Banks and other financial aid institutions. 

It is estimated that almost 40% of Kenyans have access to formal banking such as access to finance and loans. Microfinance Institutions endeavor to fill in this gap left by huge commercial banks that can not cater to the needs of low-income citizens.

The high demand for credit and easier access to MFI's have seen them record significant growth. This is supplemented by growth in the economy. The Microfinance sector in Kenya is being largely revolutionized through technological solutions that are coming through disruptions through Fintechs, disruption through digital lenders, and the old traditional lenders who are adopting technology.

The current MFIs can be classified through the services they offer their customers such as offering loans to small businesses, Fintechs who offer small loans to individuals, and commercial banks who are trying to branch out into the gap.

According to a 2020 report, there are 14 registered microfinance institutions that operate in Kenya.

For one to get access to loans from Microfinance Institutions in Kenya, the following information is considered:

1. Eligibility Criteria: MFI's use different criteria to determine if an individual is eligible for loans such as gender and age. In this scenario, only individuals from a certain age group are eligible. One however must be 18 years of age and above and be a Kenyan citizen. and if the individual is able to repay the financing.

2. Individual Credit Score: Most MFI's require individuals seeking loans from them to have an operational business for a period not less than three months and to have a certain figure in the bank that can be used to calculate credit. Additionally, one needs to provide a good business plan and have guarantors who will ensure that you repay the financing.

Note: When looking for a good microfinance loan it is important to consider the loan interest charged on the loan and how much amount in monthly installments should be paid. 

Most interest loans range from 30% to 40% for loans that do not surpass Ksh. 500,000. In case loans are above Ksh. 500, 000 then the interest charged is up to 70%.

List of Best  Microfinance institutions in Kenya

1. Faulu Microfinance

Faulu is a popular established microfinance institution in Kenya that is a leader in microloans. Its main headquarters are located along Ngong Lane, off Ngong Road Nairobi. The MFI has a wide number of branches in different counties in Kenya allowing its customers access to its financial services such as making deposits through Mpesa.

Customers can also access loans easily with a loan processing period having a timeline of 24 hours with affordable interests charges. Additionally, you are able to transact through a Faulu agent, Faulu branch, or at an ATM within Kenya.

 Here is Faulu Microfinance Information:

Telephone: +254-20-3877290
Physical Address: Faulu Kenya House, Ngong Lane - Off Ngong Road

2. Uwezo Microfinance Bank

Uwezo Microfinance offers its customers access to loans and enables them to save money which is able to accrue interest. The MFI's short-term loans have flexible interest rates too. Farmer loans offered by the institution are considered to be the best loans as they are designed to cater to the needs of farmers and those in the agriculture sector.

Uwezo Microfinance's goal is to provide its customers with a means of generating income and to better the living standards of individuals, small groups, and small and medium enterprises in Kenya.

Here is Uwezo Microfinance Information:

Telephone: 2212917 / 9
Physical Address: Park Plaza Building, Ground Floor, Moktar Daddah Street

3. Kenya Women Finance Trust (KWFT)

KWFT is another popular MFI that is considered as one of the oldest established institutions in Kenya having been licensed in 2010 by CBK. KWFT prides itself in having over 750,000 customers and 231 branches scattered in different counties in Kenya. Additionally, the institution has the largest deposit-taking finance service.

The institution offers its customers (who are mainly women and girls) access to savings and loan services. Customers are able to use Mpesa to make deposits.

You can find out about the institution through its website or visit them at their headquarters located at Akira House, UpperHill Nairobi, or through available branches.

Here is Kenya Women Finance Trust Microfinance Information:

Telephone: +254-20-2470272-5, 2715334/5, 2755340/42
Physical Address: Akira House, Kiambere Road, Upper Hill

4. Choice Microfinance Bank Limited

Choice Microfinance joins in the list as one of the best community-based microfinance institutions. The MFI was initially started to help Kenyans living in other countries to have access to local investment opportunities. The institution would provide microloans to small Kenyan businesses. 

More information about the MFI can be found on their website or you can visit their headquarters located in Rongai, Kajiado.

5. Rafiki Microfinance Bank

Rafiki Microfinance is a good choice when considering loans for agriculture which can be financed through the Kilimo Biashara account. The Microfinance institution is also known to offer its customer's diaspora banking, savings, and loan services. Additionally, it gives its customers access to affordable asset finance, Chama loans and is also a good SACCO

Here is Kenya Women Finance Trust Microfinance Information:

Telephone: 020-216 6401
Physical Address: 2nd Floor, El-roi Plaza, Tom Mboya Street

6. Century Microfinance Bank

Century MFI is focused on providing agribusiness loans by providing its customers access to savings and loan services. The institution makes it easy for customers to transact as deposits can be made through Mpesa. 

Here is Century Microfinance Information:

Telephone: +254-20-266428, 0722 168721, 0733 155652
Physical Address: KK Plaza 1st Floor, New Pumwani Road, Gikomba

7. SUMAC DTM Limited

Here is SUMAC DTM Limited:

Telephone: +254-20-2212587, 020-2210440
Physical Address: Consolidated Bank House 2nd Floor, Koinange Street

8. Remu DTM Limited

Here is REMU DTM Limited:

Telephone: +254-20-2214483, 0733-554555
Physical Address: Finance House, 14th Floor, Loita Street

Are you now well informed? 

Comment below your feedback and suggestions in regards to the above information.

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