Small business owners to benefit from Rafiki DTM

By Standard Reporter

Micro Finance businesses willing to comply with Ministry of Local Government by-laws countrywide have an opportunity to do so following the launch of financing deal with a local financial provider.

Rafiki Deposit Taking Micro Finance Bank, a subsidiary of Chase Bank has unveiled the product aimed at ending feuds with various City and Municipal councils countrywide.

Rafiki Chief Executive officer, Daniel Mavindu says the new product is available to all small businesses countrywide.

"We want the youth and SME owners to do their business without undue harassment from authorities owing to compliance," he said.

At the same time, Rafiki has teamed up with Toyota East Africa to assist youth operating boda boda access motor vehicles countrywide.

He says the organization has also negotiated motor insurance cover with Britak Insurance in a bid to protect them from losses.

"We want to aid the youth eradicate poverty by participating in the economy in a big way," he said.

Loan advances

Rafiki Deposit Taking Micro Finance is now offerings advances of as low as Sh2000 to hawkers and other small business owners to help them comply with City Council by-laws.

The loan advances are also available to the institutions customers in other towns like Mombasa.

Mavindu says the move will ensure that small scale business owners comply with city by-laws and stop clashes between them and City Council askaris.

"We realise the importance of compliance to by-laws, when the reason for assisting businesses comply," he said during a function at Pan Afric Hotel.

He said the loans will be processed within 48 hours, and urged businesses to take advantage of this new offer.

A ceiling of Sh60,000 has been set for those seeking the loans, in line with their requirements.

LPO financing

At the same time, Rafiki DTM has unveiled a unique service geared towards assisting the youth win competitive tenders.

The Central Bank of Kenya licensed institution is offering LPO financing for youth and self help groups to assist them finance their operations.

"We realise that financial constraints are mitigating against the development of youth enterprise. As a result, we have introduced this and many products to aid the youth," Mavindu said.

Other value adding services on offer include Invoice Financing, Performance Bonds, and Cheque Discounting among others.

Rafiki DTM is also issuing performance bonds and surety within an hour of application.

Rafiki Deposit Taking Microfinance Institution (DTM) is licensed to mobilise deposits countrywide.

Towards this end, the institution is planning to open new branches in Kitui, Mwingi, Makueni Meru, Nakuru and other areas.

"The youth in Kenya are very creative. They have the capacity to participate in the economy by engaging in gainful and viable economic activities that will ultimately alleviate crime and generate wealth for Kenya," Mavindu added.

Mavindu said the only way to create and sustain social and economic freedom for the youth is through access to affordable credit, which Rafiki DTM was offering countrywide.