Kenya: Faulu Bank raises 1 billion shillings to small businesses in Rift counties
Nairobi – Faulu Microfinance Bank is strengthening its presence in counties by increasing support for small businesses to play a bigger role in key sectors like agriculture, manufacturing, trade, tourism and real estate.
This will see the bank loan more than 1 billion shillings to farmers, traders, entrepreneurs, manufacturers and real estate developers in Nakuru, Nyandarua and Laikipia counties, three of the fastest growing commercial and economic centers in the valley region. of the Rift in Kenya.
Speaking at the Bank’s new branch in Nakuru City, Faulu Bank Managing Director Apollo Njoroge said the bank will implement a 3 billion shillings program targeting small businesses over the years. next three years.
“Faulu wants to strengthen its action in the counties, where the economic action takes place, by providing much needed financial support to improve the capacity of small businesses to take advantage of the business opportunities that are taking place at the decentralized level,” Njoroge said.
He explained that Nakuru’s status as a major transit city along the busy Mombasa-Nairobi-Malaba highway connecting Kenya to the greater East African region, positions it to become a hub A leading regional trade serving the central rift and western parts of the country.
Faulu provides trade and asset financing to growing businesses in the county involved in value-added businesses in agribusiness, manufacturing, horticulture, dairy and housing.
Trade finance products include local purchase order (LPO) and local service order (LSO) finance, bill discounting, supply chain finance, tender bonds / tender, advance payment guarantee, retention bond, payment guarantees and customs bonds.
The Bank will also provide crop insurance to farmers through its bancassurance agency.
The Nakuru branch was recently consolidated with the Njoro Marketing Office as the Bank seeks to reconnect with its client base by creating operational synergies while leveraging alternative channels such as mobile banking, in line with emerging market trends and customer dynamics.
The Bank, which has more than 500,000 clients across the country, including individuals and groups, also targets individuals and households in regions with a variety of personal finance products. This includes the large population of teachers, civil servants and county government employees.
Faulu has also partnered with Kenya Seed Company to help farmers buy seeds. Nakuru is considered one of the breadbasket of the country due to its high agricultural production, especially of corn, wheat and potato.
The county is one of the largest and richest in Kenya, accounting for 6.1% of the country’s gross domestic product, according to the World Bank. Nakuru is expected to become the fourth city after Nairobi, Mombasa and Kisumu after the Senate approved a plan to raise its status in June this year.
Nakuru County Governor Lee Kinyanjui said the county is keen to partner with businesses to advance the economic and social development agenda.
“Nakuru County is open for business. This Faulu Bank decision symbolizes the strong partnership between the county government and the private sector in creating real economic opportunities for our people,” said the governor.
Faulu also officially opened a branch in Nyahururu town which it turned into a marketing office in order to position itself strongly in Laikipia County, listed by the Kenya Institute for Public Policy, Research and Analysis (KIPRRA ), among the top five counties. in terms of creating a business environment conducive to SMEs.
Laikipia County Governor Ndiritu Muriithi hailed Faulu’s move as a county approval for investors.
âI am happy to note that Faulu Bank will increase its support for local businesses. The Laikipia County government stands ready to work closely with financial service providers to deepen commerce as we transform the local economy.
âOur growth strategy is focused on meeting the unique financial needs of the small businesses that make up the bulk of our customer base. The Bank’s capital injection resources must sustainably support and accelerate our business objectives, âNjoroge explained.
Besides financing, Faulu also trains its SME clients on how to grow their businesses and strengthen financial risk management.