Faulu launches agency banking

A microfinance institution has ventured into agency banking, joining other players in the fast-rising service.

Faulu Microfinance is targeting stakeholders in the agriculture sector with the platform, owing to high transactions registered in payment for services and farm produce.

Managing Director Apollo Njoroge said they will partner with county governments to fast track delivery of services.

Speaking in Murang’a during the launch, Mr Njoroge said there are already 400 agencies registered to operate, owing to increased demand for the service.

He urged county governments to stop delaying payments to contractors and other service providers to save them from getting into conflict with creditors.

“There has been delayed repayment of loans, thus forcing service providers to enter into sour relationships with banks,” said Njoroge.