536:
226:: There is no advanced credit scoring system and the majority of lenders have not stated any official borrower requirements. However, some institutions require having an existing business for at least 3 months, a small amount of cash, provide the institution with a business plan or proposal, have at least one
268:
Consumer issue: As a result of standardized products without considering customer requirements, many customers are dissatisfied with the terms and wish for more individual loan conditions. For group loans, for example, many clients dislike guaranteeing for each other, because they might not know the
199:
The educational loans market is narrow, which can be observed by the major player’s client base: KADET services only 220 clients, followed by the Kenya ECLOF (211 clients), SISDO (202 clients), and the Adok Timo (173 clients). The same is true for asset finance loans. The Equity Bank has the largest
195:
Most of the micro finance institutions offer business loans under different interest rates, duration and amounts. With 101,334 clients, Equity Bank has the largest share of business loans. With 50,000 clients, K-Rep Bank is the second largest institution, followed by Jamii Bora, as the third largest
27:
which has been developing since the mid 1990s. Legislation was passed in 2006 with the Micro
Finance Act which became active in 2008. By 2010 there were more than twenty large micro finance institutions in Kenya, which provided US $ 1.5 billion to approximately 1.5 million active borrowers. With
236:: They are mostly calculated on a flat basis and some at a declining balance. More than 90% of the institutions require monthly interest payments. The average interest rate is 30-40% for loans up to 500,000 Kenyan Shilling. For loans above 500,000 Kenyan Shilling, interest rates go up to 71%.
207:, about 14 million are not able to receive proper financial service through formal loan application services, and 12 million more Kenyans have no access to financial service institutions at all. Further, one million Kenyans are reliant on informal groups for receiving financial aid.
257:
leads to uncertainty of effective regulations and acts. Additionally, political riots, especially during elections in year 2007, have led to violence and, therefore, to economic disturbance. As a result, the
Portfolio at Risk rate increased during the riots during the elections in
269:
other clients well enough. Other clients have complained about time-consuming, weekly meetings and training with trainers, who are often too young and inexperienced. This is especially a cultural problem for older clients, who feel offended by taking advice from younger people.
69:
230:, or to attend group meetings or training. For group loans, almost half of the institutions require group members to be guarantor for each other. For Mobile App Lenders, they make use of machine learning algorithms to calculate credit score.
51:
is a major problem in Kenya. In 2010 Kenya ranked 154th (out of 178) on the
International Corruption Index. Political riots such as during elections in year 2007, which led to violence and economic disturbance. As a result of this
40:
with 12.06%. Most microfinance firms as in other countries have eligibility criteria which may include gender (as in the case for special women's loans), age (at least 18 years of age), a valid Kenyan
196:
bank for business loans and servicing 37,400 clients. Specializing in loans for women, the KWFT (Kenya Women
Finance Trust) holds by far the largest market share, with loans to 334,188 clients.
380:
965:
84:, the Banking Act, and the Central Bank of Kenya Act. In addition, there are several existing guidelines. The responsibility for monetary policy and the banking system is held by the
421:
343:
142:
In 2010, there were more than twenty large micro finance institutions in Kenya, which provided US $ 1.5 billion to approximately 1.5 million active borrowers. According to their
56:, the Portfolio at Risk rate increased during the riots during the elections in 2007. And infrastructure issues, where despite the economy having risen at a real
181:
Those institutions offer business loans on a larger scale, specific agriculture loans, education loans, and loans for any other purpose. Additionally there are:
159:(KWFT): has a market share of 12.06%, a gross loan portfolio of 152,136,208 Kenyan Shilling and 334,188 active borrowers to whom they offer 6 different products.
446:
216:
Eligibility criteria: The general criteria might include gender (as in the case for special women's loans), age (at least 18 years of age), a valid Kenyan
153:
has a market share of 73.50%, a gross loan portfolio of 924,993,804 Kenyan
Shilling and 715,969 active borrowers to whom they offer 10 different products.
524:
494:
Hospes, Otto; Musinga, Muli; OngÕayo, Milcah: An
Evaluation of Micro-Finance Programmes in Kenya as Supported through the Dutch Co-Financing Programme.
171:
has a market share of 3.56%, a gross loan portfolio of 39,643,494 Kenyan
Shilling and 102,371 active borrowers to whom they offer 6 different products.
165:
has a market share of 6.39%, a gross loan portfolio of 74,182,292 Kenyan
Shilling and 82,000 active borrowers to whom they offer 5 different products.
99:
The Kenyan Micro
Finance Act was adopted in 2006 and became active in 2008. With the adoption of this act, institutions could apply for micro finance
381:
http://www.microcapital.org/microcapital-story-kenyan-microfinance-trade-association-puzzled-as-only-two-mfis-participate-in-new-friendly-regulation/
177:
has a market share of 0.86%, a gross loan portfolio of 9,568,460 Kenyan
Shilling and 79,194 active borrowers to whom they offer 6 different products.
1031:
379:
Curtis, Lori: Microcapital story: Kenyan Microfinance Trade Association Puzzled as Only Two MFIs Participate in New Friendly Regulation.
425:
347:
1021:
805:
679:
502:
470:
1052:
878:
168:
790:
759:
724:
517:
392:
265:
of 4% in 2011, banking infrastructure remains weak and requires significant investment in staff, facilities, and technology.
942:
639:
156:
37:
689:
800:
659:
1026:
614:
1057:
874:
649:
629:
619:
510:
996:
932:
780:
764:
754:
719:
634:
321:
1016:
795:
254:
250:
is a major problem in Kenya. In 2010 Kenya ranked 154th (out of 178) on the International Corruption Index.
970:
947:
709:
699:
540:
279:
93:
909:
785:
694:
599:
556:
85:
899:
749:
674:
589:
200:
market share (2,853 clients) and Family Bank the second largest (2,000 clients) in asset financing.
684:
574:
1011:
904:
734:
729:
185:
emergency loans, which are more expensive in respect to interest rates, but are quickly available
889:
669:
579:
299:
217:
150:
42:
29:
884:
869:
846:
584:
894:
714:
704:
566:
393:
http://www.centralbank.go.ke/downloads/bsd/appforms/MFI/A-Z%20of%20Licensing%20a%20DTM.pdf
262:
57:
495:
1001:
831:
810:
739:
594:
223:
89:
77:
53:
68:
1046:
1006:
826:
664:
644:
391:
Kenya Central Bank: The A-Z of licensing a deposit taking microfinance institutions.
233:
81:
975:
957:
861:
548:
404:
289:
20:
188:
group loans for smaller groups (4-5 members) and larger groups (up to 30 members)
45:, a business, an ability to repay the loan and be a customer of the institution.
937:
744:
654:
624:
294:
220:, a business, an ability to repay the loan and be a customer of the institution.
914:
247:
174:
162:
143:
48:
408:
841:
836:
604:
322:
http://www.transparency.org/policy_research/surveys_indices/cpi/2010/results
227:
368:
103:
at the Kenyan Central Bank either as a national or community institution.
609:
100:
471:"How Mobile Loans Apps calculate Credit Score Rating for lending limits"
980:
851:
367:
Center for financial inclusion: Summary of Client Protection in Kenya.
204:
320:
Transparency International: Corruption Perception Index 2010 Results.
535:
284:
261:
Infrastructure issues: Despite the economy having risen at a real
67:
24:
120:
The four steps of approval for a micro finance institution are:
33:
506:
106:
In order to do so, these institutions must be registered as:
191:
women loans, which are also available to a group of women
403:
Data are taken from the websites of the institutions,
138:
Existing institutions providing micro finance products
496:
http://www.gdrc.org/icm/country/Kenya-finalreport.pdf
60:
of 4% in 2011, banking infrastructure remains weak.
989:
956:
923:
860:
819:
773:
565:
547:
316:
314:
405:http://www.mftransparency.org/data/countries/ke/
36:representing market share of 73.50% followed by
447:"The banks to avoid when you are seeking loans"
146:portfolio, the five largest institutions are:
518:
337:
335:
333:
331:
329:
116:informal organizations (supervised by an NGO)
8:
1032:Structured Financial Messaging System (SFMS)
525:
511:
503:
409:http://www.mixmarket.org/mfi/country/Kenya
1022:National Electronic Fund Transfer (NEFT)
369:http://www.accion.org/Page.aspx?pid=1419
88:, which also releases information about
419:Mfo upgrading initiative : Kenya.
341:Mfi upgrading initiative : Kenya.
310:
211:Conditions for micro finance products
7:
32:had the largest share of business
14:
1027:Real Time Gross Settlement (RTGS)
806:Kenya Mortgage Refinance Company
680:Housing Finance Company of Kenya
534:
203:Out of approximately 40 million
774:Financial services organization
113:non deposit-taking institutions
997:Automated Teller Machine (ATM)
92:, banking guidelines, and the
23:facilities and regulations in
1:
943:Kenya Women Microfinance Bank
640:East African Development Bank
157:Kenya Women Microfinance Bank
80:in Kenya is regulated by the
38:Kenya Women Microfinance Bank
976:United Nations Sacco Society
585:African Banking Corporation
110:deposit-taking institutions
1074:
1007:De-Materialisation (DEMAT)
615:Consolidated Bank of Kenya
925:Microfinance Institutions
875:Commercial Bank of Africa
630:Development Bank of Kenya
620:Cooperative Bank of Kenya
253:Furthermore, the lack of
1017:Foreign Exchange (FOREX)
933:Choice Microfinance Bank
765:Victoria Commercial Bank
755:Standard Chartered Kenya
720:Paramount Universal Bank
280:SMEP Micro finance Bank
127:Application for license
1053:Microfinance in Africa
971:Mwalimu National Sacco
966:Imarisha Sacco Society
948:SMEP Microfinance Bank
760:United Bank for Africa
710:National Bank of Kenya
700:Middle East Bank Kenya
94:financial institutions
73:
28:over 100,000 clients,
910:Imperial Bank Limited
786:Equity Group Holdings
695:Kenya Commercial Bank
557:Central Bank of Kenya
86:Central Bank of Kenya
72:Central bank of Kenya
71:
17:Microfinance in Kenya
900:Giro Commercial Bank
690:Kingdom Bank Limited
675:Habib Bank AG Zurich
64:Existing regulations
660:Guaranty Trust Bank
133:Issuance of license
1012:Financial services
877:(Formerly part of
635:Diamond Trust Bank
246:Political issues:
74:
1040:
1039:
670:Gulf African Bank
610:Citibank NA Kenya
580:Access Bank Kenya
151:Equity Bank Kenya
30:Equity Bank Kenya
1065:
1058:Banking in Kenya
885:Dubai Bank Kenya
796:I&M Holdings
539:
538:
527:
520:
513:
504:
498:
492:
486:
485:
483:
482:
467:
461:
460:
458:
457:
451:www.nation.co.ke
443:
437:
436:
434:
433:
424:. Archived from
417:
411:
401:
395:
389:
383:
377:
371:
365:
359:
358:
356:
355:
346:. Archived from
339:
324:
318:
130:Letter of intent
124:Approval of name
1073:
1072:
1068:
1067:
1066:
1064:
1063:
1062:
1043:
1042:
1041:
1036:
985:
952:
919:
856:
815:
769:
705:M-Oriental Bank
567:Commercial bank
561:
543:
533:
531:
501:
493:
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66:
12:
11:
5:
1071:
1069:
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1055:
1045:
1044:
1038:
1037:
1035:
1034:
1029:
1024:
1019:
1014:
1009:
1004:
1002:ATM usage fees
999:
993:
991:
990:Related Topics
987:
986:
984:
983:
978:
973:
968:
962:
960:
954:
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951:
950:
945:
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935:
929:
927:
921:
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887:
882:
872:
866:
864:
858:
857:
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854:
849:
844:
839:
834:
832:Bank of Kigali
829:
823:
821:
817:
816:
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813:
808:
803:
798:
793:
788:
783:
777:
775:
771:
770:
768:
767:
762:
757:
752:
747:
742:
740:SBM Bank Kenya
737:
732:
727:
722:
717:
712:
707:
702:
697:
692:
687:
682:
677:
672:
667:
662:
657:
652:
647:
642:
637:
632:
627:
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617:
612:
607:
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597:
595:Bank of Baroda
592:
590:Bank of Africa
587:
582:
577:
571:
569:
563:
562:
560:
559:
553:
551:
545:
544:
541:Banks of Kenya
532:
530:
529:
522:
515:
507:
500:
499:
487:
462:
438:
412:
396:
384:
372:
360:
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297:
292:
287:
282:
275:
272:
271:
270:
266:
259:
251:
242:
241:Key challenges
239:
238:
237:
231:
224:Credit scoring
221:
212:
209:
193:
192:
189:
186:
179:
178:
172:
166:
160:
154:
139:
136:
135:
134:
131:
128:
125:
118:
117:
114:
111:
90:interest rates
78:banking system
65:
62:
54:political risk
13:
10:
9:
6:
4:
3:
2:
1070:
1059:
1056:
1054:
1051:
1050:
1048:
1033:
1030:
1028:
1025:
1023:
1020:
1018:
1015:
1013:
1010:
1008:
1005:
1003:
1000:
998:
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994:
992:
988:
982:
979:
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974:
972:
969:
967:
964:
963:
961:
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955:
949:
946:
944:
941:
939:
936:
934:
931:
930:
928:
926:
922:
916:
913:
911:
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901:
898:
896:
893:
891:
888:
886:
883:
880:
876:
873:
871:
868:
867:
865:
863:
862:Defunct banks
859:
853:
850:
848:
845:
843:
840:
838:
835:
833:
830:
828:
827:Bank of China
825:
824:
822:
820:Foreign banks
818:
812:
809:
807:
804:
802:
799:
797:
794:
792:
789:
787:
784:
782:
779:
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772:
766:
763:
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751:
748:
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733:
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728:
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723:
721:
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698:
696:
693:
691:
688:
686:
683:
681:
678:
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673:
671:
668:
666:
665:Guardian Bank
663:
661:
658:
656:
653:
651:
648:
646:
645:Ecobank Kenya
643:
641:
638:
636:
633:
631:
628:
626:
623:
621:
618:
616:
613:
611:
608:
606:
603:
601:
600:Bank of India
598:
596:
593:
591:
588:
586:
583:
581:
578:
576:
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572:
570:
568:
564:
558:
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514:
509:
508:
505:
497:
491:
488:
476:
472:
466:
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452:
448:
442:
439:
428:on 2013-06-03
427:
423:
416:
413:
410:
406:
400:
397:
394:
388:
385:
382:
376:
373:
370:
364:
361:
350:on 2013-06-03
349:
345:
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336:
334:
332:
330:
326:
323:
317:
315:
311:
305:
301:
298:
296:
293:
291:
290:Micro finance
288:
286:
283:
281:
278:
277:
273:
267:
264:
260:
256:
252:
249:
245:
244:
240:
235:
234:Interest rate
232:
229:
225:
222:
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210:
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201:
197:
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115:
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109:
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102:
97:
95:
91:
87:
83:
82:Companies Act
79:
70:
63:
61:
59:
55:
50:
46:
44:
39:
35:
31:
26:
22:
18:
924:
750:Stanbic Bank
730:Premier Bank
685:I&M Bank
549:Central bank
490:
479:. Retrieved
477:. 2019-09-10
474:
465:
454:. Retrieved
450:
441:
430:. Retrieved
426:the original
415:
399:
387:
375:
363:
352:. Retrieved
348:the original
295:Micro credit
255:transparency
202:
198:
194:
180:
141:
119:
105:
98:
75:
47:
21:microfinance
19:consists of
16:
15:
938:Faulu Kenya
745:Sidian Bank
655:Family Bank
650:Equity Bank
625:Credit Bank
263:growth rate
58:growth rate
1047:Categories
915:Spire Bank
905:Habib Bank
870:Chase Bank
811:NCBA Group
735:Prime bank
481:2020-11-28
456:2015-11-26
432:2015-09-25
354:2015-09-25
306:References
248:Corruption
175:Jamii Bora
163:K-Rep Bank
144:gross loan
49:Corruption
895:Fina Bank
890:Euro Bank
879:CBA Group
842:HDFC Bank
837:FirstRand
801:KCB Group
781:DTB Group
725:Post Bank
715:NCBA Bank
605:CIB Kenya
575:Absa Bank
475:Kenyayote
300:Kenya Law
228:guarantor
791:HF Group
274:See also
101:licenses
981:Unaitas
852:Nedbank
422:"Kenya"
344:"Kenya"
205:Kenyans
958:SACCOs
285:Kenya
258:2007.
169:Faulu
34:loans
25:Kenya
847:HSBC
407:and
76:The
1049::
473:.
449:.
328:^
313:^
218:ID
96:.
43:ID
881:)
526:e
519:t
512:v
484:.
459:.
435:.
357:.
Text is available under the Creative Commons Attribution-ShareAlike License. Additional terms may apply.
