Monday, Jan 17, 2022
HomeEconomyCorporateMaisha Microfinance Bank launches 11.25% annual fixed deposit product

Maisha Microfinance Bank launches 11.25% annual fixed deposit product

Maisha Microfinance Bank launches 11.25% annual fixed deposit product

Maisha Microfinance Bank has launched a new savings and loans product with the highest return in the market.

The product dubbed M-Fanisi has a rate of 11.25 percent annually.

M-Fanisi is aimed at encouraging Kenya’s saving culture among Kenyans with savings of as low as Ksh.500.

Speaking during the launch on Wednesday, Maisha Microfinance Bank Chief Executive Officer Ireneus Gichana said the product is mobile-based targeting both M-Pesa and Airtel subscribers.

“The best way to safeguard one’s investment from unprecedented and volatile market movement is by investing in a fixed deposit account. With the unprecedented COVID-19 Pandemic that swept the globe over the past eighteen months, fixed deposit accounts have grown in popularity in Kenya,” he said.

Gichana noted that the savings culture in the Kenyan market remains low due to the heavy focus given to borrowing compared to other financial services.

With an individual keeping the money longer in the account for at least 30 days to 12 months or more, the higher the interest earned.

Total deposits in the microfinance bank increased by 12.3 percent from 43.9 percent as of December 2019 to 49.3 at the same period last year.

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This is due to aggressive use of digital platforms to mobile customers.

The bank currently has a growing customer base of over 400,000 across Kenya.

Central Bank of Kenya’s (CBK) data, fixed bank deposits held by Kenyans hit a historic high to Ksh.64.8 billion for the year ended June, 2021.

This translated to an increase of about Ksh.720 million daily.

CBK said the savings ratio improved in Kenya from 5.4 percent to 11.7 in 2020 and projected to trend around there in 2021.

According to the 2021 report, Kenya’s saving rate stood at 12 percent, way below Africa’s average of 17 percent with Uganda and Tanzania crossing the 20 percent mark.

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