NAIROBI, Kenya, Oct 29 – Faulu Kenya has partnered with Siaya County Government to launch a financing drive whose objective is to grant traders in the informal sector easy access to credit.
The microfinance bank has invested over Sh270million towards the initiative, which is primarily targeting traders in Siaya and the larger Lake Victoria region.
Faulu Bank Managing Director Apollo Njoroge said the move is a departure from the conventional formal collateral security that includes land, property and share certificates among others.
Traders in the fish farming value chain will use their fishing nets, boats, engines, cages as collateral to access credit facilities to purchase modern fishing equipment.
“Lack of finances to fund working capital has for long been a key barrier to entry for a majority of the youth wishing to engage in Income generating activities because of the stringent requirements when it comes to lending from the formal banking sector,” Njoroge said.
“Faulu Microfinance Bank has strategically aligned its business model to provide a wide range of financial services and attract diverse customers, amongst target segments being Personal, Business/SME, Community banking segments and Bancassurance,” added Njoroge.
The Bank recently announced plans to expand its branch network in a strategic move that will see it grow its presence across the country and increased grassroots reach in the counties.
The initiative will see it open eight new branches in Homabay, Kericho, Busia, Voi, and Limuru. The Bank is also set to upgrade marketing offices to sales and service centers in Taveta, Emali, Iten and Kimilili to enable the hubs offer a wide range of products and services to clients.
Additionally, the Bank has embarked on a mission of refurbishing 15 branches across the country as part of its Sh113 million branch expansion and upgrade programme.