Why Equity Bank is no longer lending to Mama Mboga

Equity Bank CEO James Mwangi. 

When Equity Bank started on its journey to becoming a financial institution of repute, it largely focused on the unbanked poor —’the watchmen, grocery sellers and small-scale farmers’. Many foreign-owned banks had shunned this segment with some even blacklisting customers who could not maintain minimum balances of about Sh10,000. 

Equity tapped into the low-income class and informal or jua kali sectors and ended up redefining the banking industry. This is the category that Equity listed as typical customers — with cheap savings accounts and microloans backed by unusual guarantees.