Faulu Microfinance Bank plans to lend more that Sh1 billion to micro, small and medium enterprises (SMEs) to help the bank grow its presence and revenues.
However, small enterprises in Nakuru, Nyandarua and Laikipia counties are the ones to benefit from the funds.
The funds are part of a Sh3 billion package targeting SMEs over the next three years.
Faulu Bank Managing Director and CEO, Apollo Njoroge, says the bank is keen on strengthening its play in the counties, where the economic action is taking place.
“…the economic action is taking place by providing much needed financial support to improve the capacity of small enterprises to take advantage of unfolding trade opportunities at the devolved level,” he said.
The microfinance said it will be targeting farmers, traders, contractors, manufacturers and property developers in the three counties.
The micro lender in May received Sh1.45 billion capital injection from its parent company, Old Mutual Africa Holdings to strengthen its balance sheet and expand to the grassroots after posting a loss last year.
This comes as small enterprises are currently grappling with acute liquidity shortage thus hampering their ability to rebuild and scale up their operations as economic activity gradually returns to normal.
Faulu said it will be offering trade and asset financing to grow businesses in the counties, support value addition in agro-processing, manufacturing, horticulture, dairy and housing.
Under trade finance, Faulu is offering a variety of products designed to enable small enterprises take advantage of emerging opportunities in local and international trade and commerce.
Such products include Local Purchase Order (LPO) and Local Service Order (LSO) financing, invoice discounting, supply chain financing, tender/bid bonds, performance bonds, advance payment guarantee, retention bond, payment guarantees and customs bonds.
