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Central Bank licenses Kenya’s 13th nationwide MF bank

The Central Bank of Kenya has licensed Maisha Microfinance Bank Ltd as the thirteenth micro-finance institution in the country. In a recent press release, the regulator affirmed that it had granted a licence to Maisha Microfinance Bank Ltd, to be referred to as Maisha MFB which was duly licensed to carry out nationwide microfinance banking
business.
“The licence has been issued pursuant to Section 6 (1) of the Microfinance Act, 2006 and Regulation 5` (3) of the Microfinance Regulations, 2008,” the Central Bank of Kenya (CBK), said in its statement. This makes Maisha MFB the thirteenth microfinance bank (MFB) to be licensed following the licensing of eight nationwide MFBs. The other microfinance institutions running their operations across the country include Faulu Kenya MFB, Kenya Women
MFB, Small and Micro Enterprise Programme (SMEP) MFB, REMU MFB, Rafiki MFB, Century MFB, SUMAC MFB and Caritas MFB.

There are also four registered communitybased MFBs — Uwezo MFB, U&I MFB, Daraja MFB and Choice MFB. “Maisha MFB is a Kenyan-owned company limited by shares and intends to commence operations in Nairobi County with the objective of expanding across the country with time,” the statement adds. The MFB’s has set up its head office and branch at Chester House, situated along Koinange Street in Nairobi. CBK states that Maisha MFB will offer comprehensive

Insurance Premium Financing (IPF) products as value-add alongside other Micro Small and Medium Enterprises (MSMEs) financing products. The MFB is looking to provide a one-stop financial services shop for MSMEs. According
to the World Bank Group economic analysis for the country, Kenya’s insurance sector was expected to have a growth rate of 6 per cent in 2015. The growth was likely to continue in the next years given the innovations taking place in the economy. In addition, the growing middle class and increased levels of households spending are creating an
opportunity for the insurance business.

“Tapping into this potential and opportunities is the best way of reaching the largely uninsured Kenyan population on
board with services to facilitate the access and penetration of the insurance sub-sector,” reads the CBK statement. Maisha Micro finance bank’s objectives seeks to join the ranks of numerous other MFIs which offer numerous options to tap into these opportunities that are expected to spur the financial inclusion for consumers across the board and irrespective of their social status.