Firm poised to get banking licence

Ngao Credit has said it is confident it will receive a licence to operate as a microfinance bank.

The credit-only microlender said it had met all the requirements and is only waiting for the nod from the Central Bank of Kenya (CBK) to start receiving deposits from the public. The management of the microfinance institution said it expect to receive the licence by January next year.

“Next, we are going digital and we are now going to apply for a licence from the Central Bank of Kenya,” said Ngao Credit Chief Executive John Ngumba during the firm’s 10th anniversary celebrations in Nairobi.

“By next year, we will start the process of licensing as a deposit-taking microfinance bank,” added Kenneth Kiura, the firm’s financial director.

Mobile savings

CBK had yet to confirm whether it had received Ngao Credit’s application for a microfinance bank licence.

If given the nod, Ngao Credit will become the 14th microfinance lender to be regulated by CBK. Among the biggest deposit-taking microlenders in the country are Kenya Women Finance Trust, Faulu and Rafiki.

Although microfinance banks have struggled to mobilise savings from the public, Mr Kiura said Ngao would convert its current customers to depositors.

According to official figures, the 13 microfinance banks have a total of 977 deposit accounts and 264 loan accounts, compared with 47 million deposit and 7.8 million loan accounts for commercial banks.