Faulu Microfinance Bank has set a side Ksh.1 billion package to support Small and Micro Enterprises in key sectors like agriculture, manufacturing, trade, tourism and real estate.
Faulu is targeting farmers, traders, contractors, manufacturers and property developers in Nakuru, Nyandarua and Laikipia counties, three of the fastest growing business and economic hubs in Kenya’s rift valley region.
Speaking during the launch of the bank’s new branch in Nakuru town, the lenders Chief Executive Officer Apollo Njoroge said the institution is implementing a Ksh.3 billion package targeting small enterprises over the next three years.
“Faulu is keen on strengthening its play in the counties, where 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,” said Njoroge.
Nakuru County Governor Lee Kinyanjui said the county is keen on partnering with businesses to advance the economic and social development agenda.
“Nakuru County is open to business. This move by Faulu Bank symbolizes the strong partnership between the county government and private sector in creating real economic opportunities for our people,” said the governor.
Faulu is offering trade and asset financing to growing businesses in the county, involved in value addition activities in agro-processing, manufacturing, horticulture, dairy and housing. The trade finance products include Local Purchase Order (LPO) and Local Service Order (LSO) financing, invoice discounting, supply chain financing, tender/bid bonds, advance payment guarantee, retention bond, payment guarantees and customs bonds.
The Bank will also provide crop insurance to farmers through its bancassurance agency.
The Nakuru branch was recently consolidated with the Njoro marketing office as the Bank seeks to re-engage with its clientele by creating operational synergies, while leveraging alternate channels like mobile banking in line with emerging market trends and customer dynamics.
The Bank, which has over 500,000 customers across the country, including individuals and groups, is also targeting individuals and households in the areas with a variety of personal finance products.
This includes the large population of teachers, civils servants and employees of county governments.
Faulu has also partnered with Kenya Seed Company to help farmers purchase seeds. Nakuru is considered one of the country’s bread baskets due to its high agricultural output especially maize, wheat and potato production.
The county is among the largest and wealthiest in Kenya, accounting for 6.1 percent of the country’s Gross Domestic Product, according to the World Bank.
Nakuru is set to become the fourth city after Nairobi, Mombasa and Kisumu after the Senate approved a plan to elevate its status in June this year.