The Central Bank of Kenya has given its approval to Choice Microfinance Bank to conduct microfinance business in Kenya. This is after the Rongai-based institution fulfilled regulatory requirements.
“The Central Bank of Kenya (CBK) has granted a licence to Choice Microfinance Bank Limited (hereafter referred to as ChoiceMFB) to carry out community microfinance banking business,” CBK said in a statement. “Choice MFB intends to operate in Kajiado North constituency, Kajiado Country.”
Consequently, the microfinance bank has announced an ambitious three year growth strategy that will see it grow its deposit and loan portfolio to Sh1.25 billion and Sh640 million, respectively by 2018.
To achieve this, Choice will offer various savings and loans products among them micro loans for individuals in business, group or chama loans, asset finance, school fees, farming and salary loans among others. The microfinance bank will also run various accounts for individuals and institutions.
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“The bank has acquired a core banking system capable of handling 10 branches which will accommodate our targeted growth,” said Chief Executive Officer Lydiah Maina. “The bank is also pursuing partnerships to ensure it moves with the current technology on mobile banking, internet banking and agency banking.”
Bank chairman Bernard Kamiri said with the CBK’s nod, all is now set for expansion outside Rongai where the microfinance bank is located. The microfinance bank targets pastoralist communities, flower farm workers and micro, small and medium enterprises.
“We shall continue serving the most marginalised communities around the country while not forgetting the Diaspora community, our core clients,” Mr Kamiri said during a dinner hosted for current and potential investors in Nairobi which was also streamed live to investors in the diaspora.