The Central Bank of Kenya (CBK) has licensed Choice Microfinance Bank Limited to offer community microfinance services.
Choice MFB becomes the eleventh microfinance bank (MFB) to be licensed following the licensing of seven nationwide MFBs (Faulu Kenya MFB, Kenya Women MFB, SMEP MFB, REMU MFB, Rafiki MFB, Century MFB and SUMAC MFB) and three community-based MFBs (Uwezo MFB, U&I MFB and Daraja MFB).
Choice MFB is wholly-owned Kenyan company. The microfinance bank prides itself as one of the first diaspora driven initiatives in the financial services sector in Kenya. Choice MFB intends to operate in Kajiado North Constituency, Kajiado County, according to Central Bank of Kenya.
Choice MFB’s target market will be the pastoralist communities, flower farm workers and the micro, small and medium enterprises (MSMEs) resident and operating in Kajiado North Constituency. The microfinance bank shall also target the non-governmental organisations (NGOs) and higher learning institutions within its administrative operational area.
“Marginalised communities and institutions, including pastoralist communities and micro, small and medium enterprises (MSMEs) respectively, still represent a large percentage of the unbanked population in Kenya,” CBK said in a statement.
“Improved access to financial services promotes the fundamental freedoms of choice and financial literacy thereby enhancing the decision making process and economic opportunities available to Kenyans.”
The licensing of Choice Microfinance Bank Limited reiterates the Central Bank’s commitment to play a catalytic role in the development of an all-inclusive financial system. This is aimed towards the promotion of financial inclusion and economic growth in Kenya, which are key tenets of Kenya’s economic development blueprint, Vision 2030.
