Faulu Microfinance Bank has opened a new branch in Limuru Town, Kiambu County. The bank’s move is in a bid to attract the rich agricultural and commercial potential in the region, with specific focus on small enterprises in the agribusiness value chain.
Limuru is the third branch Faulu is opening in Kiambu County after Thika and Kiambu towns. In addition to agribusiness, Faulu is keen on tapping into the booming real estate market in the county.
Speaking at the launch ceremony, Faulu Bank CEO Apollo Njoroge said, “Limuru is a major tea producing area but we also like the vibrant businesses we are seeing here. Having a presence here positions us to scale up our support to small enterprises and individuals in the lucrative agribusiness value chain.”
The Bank, he added, plans to lend up to Ksh. 300 million over the next 12 months to SMEs in the Limuru region to expand their operations.
This is part of the Ksh. 3 billion the Bank has set aside to help SMEs across key sectors like agriculture, trade, retail, construction and transport, recover from economic challenges related to COVID-19.
Kiambu County Governor Dr. James Nyoro, who was the chief guest at the launch ceremony, hailed Faulu’s move to open a third branch in the county. “We are in discussions with financial institutions like Faulu Bank to provide flexible loans to SMEs since access to credit remains a big constraint for small businesses. I encourage the small traders to open accounts with banks like Faulu and grow their savings to enable them to borrow money to expand their businesses,” said Dr. Nyoro.
Faulu’s new branch in Limuru previously served as a sale and marketing center and is one of eight such centers the Bank plans to fully convert into branches. The others are Ugunja, Kapenguria, Homa Bay, Kericho, Busia, Voi and Bondo.
“Among the unique products we are offering include landlord loans for construction and rehabilitation of rental units in areas like Limuru, Ruaka, Gachie, Banana, Ndenderu, Wangige and Kikuyu,” explained Mr. Njoroge.
He added that Faulu products come with several perks including insurance benefits on the Maisha Account. For a premium of only Ksh. 631 annually, one is entitled to a life cover of Ksh. 100,000 and a benefit of Ksh. 50,000. For a family of six, the total premium is Ksh. 1,003.
Last year, Faulu opened new branches in Homa Bay, Busia, Bondo and Kericho as it seeks to expand its footprint in the counties. So far, the Bank has 61 branches and is also refurbishing some outlets to transform the customer experience and offer greater convenience. These include Karatina, Thika, Nyeri, Kitui, Molo and Mwingi.