Daraja Microfinance to offer banking services
The Central Bank of Kenya. The Public Service Commission will on Thursday interview shortlisted candidates for the position of the deputy governor of the Central Bank of Kenya even as it appeared to break the qualification guidelines it had set for eligible applicants. FILE PHOTO |
What you need to know:
- In July last year, the CBK directed MFBs to comply with the cash reserve ratio (CRR) rule as required by the CBK Act, in a move meant to level the playing field for the sector.
- Other micro-finance banks (MFBs) operating in Kenya include seven nationwide ones, namely Faulu Kenya, Kenya Women, SMEP, REMU, Rafiki, Century and SUMAC, and two community-based ones, namely Uwezo and U&I.
The Central Bank of Kenya (CBK) has licensed Daraja Microfinance to operate banking services, raising the number of such lenders in Kenya to 10.
The Kenyan lender received approval from the CBK yesterday to undertake a community-based micro-lending business in Dagoretti Division, Nairobi County. Daraja will be targeting micro and small enterprises as well as lending to the low-income segment of the community.
“The entry of Daraja Microfinance Bank Limited into the formal financial sector will encourage innovation, competition and increased outreach in enhancing broad-based financial inclusion for the Kenyan populace, particularly the low income and MSEs,” the CBK noted in a statement.
Other microfinance banks (MFBs) operating in Kenya include seven nationwide ones, namely Faulu Kenya, Kenya Women, SMEP, REMU, Rafiki, Century and SUMAC, and two community-based ones, namely Uwezo and U&I.
The MFBs are now allowed to operate current accounts and foreign exchange business and undertake any other business just like commercial banks.
In July last year, the CBK directed MFBs to comply with the cash reserve ratio (CRR) rule as required by the CBK Act, in a move meant to level the playing field for the sector.
The MFBs now deposit an amount equivalent to the CRR 5.25 per cent with the Central Bank in a month.
The deposits that microfinance banks held amounted to Sh30.7 billion as of June this year.
