Faulu Bank has signed an agreement with the Non-Governmental Organization (NGO) Council in an aim to mobilize affordable deposits and its Non-Funded Income (NFI) Line.
Through this partnership, Faulu Bank will leverage long term and sustainable strategies that will ensure the growth of its Current and Savings Account (CASA) and NFI line. The NGO Council will on the other hand support the bank by ensuring that it partners with as many NGOs as possible and onboard them to enjoy the benefits of its Imani Account.
The Account offers interests of up to 5% for an account balance of Ksh. 10,000 and above in local currency. This is in addition to allowing access to competitive Fixed deposit rates, access to Salary processing, 1st free cheque book and its available in KES, USD, GBP, EUR, ZAR.
Currently, there are over 11,262 registered NGOs in the country that pursue various charitable purposes, out of which 8,893 are active. In 2018/19, NGOs received a total of Ksh. 165.97 billion, an 8% increase from the previous year. 88% of these funds were raised from sources outside Kenya.
Total expenditure for the NGOs was Ksh. 172.1 billion, representing a 15% increase from 2017/18. On project implementation, NGOs spent Ksh. 78.8 billion on projects in various parts of the country.
Majority of the project expenditure was on health, HIV/AIDS, education and relief and disaster management at Ksh. 13.0 billion, Ksh. 10.6 billion, Ksh. 9.4 billion and Ksh. 8.8 billion, respectively. Most charities implemented projects in areas with good infrastructures, such as Nairobi, Kiambu, Kisumu, Nakuru and other urban Centres.
The MoU signed between Faulu and the NGO Council showcases the potential for the bank to open over 100 NGO accounts and mobilize over Ksh. 150 million in deposits at rates lower than 1 year T-bill rate.
Commenting during the ratification ceremony held in Nairobi, Faulu Bank CEO Apollo Njoroge said, “Signing of this Memorandum of Understanding today will offer us an opportunity to support the council in capacity development and providing financial literacy to NGOs and Community Based Organisations (CBOs) while advancing our products and service to the NGO sector”.
On his part, NGO Council Chairman Samuel Githinji, had this to say, “As a council, we have been having discussions with the bank and in the process expressed our desire for them to be pivotal in supporting and complementing the work that the NGOs are undertaking within the country. We are positive to support Faulu in any way we can to ensure that they partner with as many NGOs to achieve their mandate of capacity building through financial education.”