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HomeEconomyCorporateAll NGO accounts to deposit with Faulu Bank in new deal

All NGO accounts to deposit with Faulu Bank in new deal

Faulu Bank inks deal with NGOs in growth strategy

Faulu Bank has signed a mutual deal with the Non-Governmental Organization (NGO) Council to mobilize sticky and affordable deposits, as well as grow its Non-Funded Income (NFI) Line.

The lender is banking on long-term and sustainable strategies that will ensure the growth of its Current and Savings Account (CASA) and NFI line.

“Signing of this Memorandum of Understanding today will offer us an opportunity to support the council in capacity development and providing financial literacy to NGOs and Community Based Organisations (CBOs) while advancing our products and service to the NGO sector,” said Faulu Bank CEO Apollo Njoroge.

On the flip side, the council will support the bank by ensuring that it partners with as many NGOs as possible and onboard them to enjoy the benefits of its Imani Account – a product customized for NGOs, CBOs, and Churches.

The Account offers interests of up to 5 percent for an account balance of Ksh.10,000 and above in

This is besides allowing access to competitive Fixed deposit rates, access to Salary processing, 1st free cheque book and its available in Ksh, US$, GBP, EUR, ZAR.

“As a council, we have been having discussions with the bank and in the process expressed our desire for them to be pivotal in supporting and complementing the work that the NGOs are undertaking within the country. We are positive to support Faulu in any way we can to ensure that they partner with as many NGOs to achieve their mandate of capacity building through financial education,” said Mr. Samuel Githinji, Chairman NGO Council.

Currently, there are over 11,262 registered NGOs in the country that pursue various charitable purposes out of which 8,893 are active.

In 2018/19, NGOs received a total of Ksh.165.97 billion which was an 8 percent increase from the previous year. 88 percent of these funds were raised from sources outside Kenya.

Total expenditure for the NGOs was Ksh.172.1 billion, representing a 15 percent increase from 2017/18.

On project implementation, NGOs spent Ksh.78.8 billion on projects in various parts of the country.

The bulk of the project expenditure was on health, HIV/AIDS, education and relief/disaster management at Ksh.13.0 billion, Ksh.10.6 billion, Ksh.9.4 billion and Ksh.8.8 billion, respectively.

Most charities implemented projects in areas with good infrastructures, such as Nairobi, Kiambu, Kisumu, Nakuru and other urban Centres.

Findings by the bank shows that CBOs are doing more work in the community and as of 2020, it’s estimated that they utilized Ksh.12,325,671 in terms of project funding.

The MoU signed December 3, 2021, showcases the potential for Faulu Bank to open over 100 NGO accounts, mobilize over Ksh.150 million in deposits at rates lower than one year Treasury Bill (T-bill) rate and earn over Ksh.2 million in foreign exchange income.

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Lawrence Baraza is a prolific writer with competencies in Digital Media, Print, and Broadcast. Baraza is also a Communication Practitioner currently spearheading Digital content on Metropol TV's Digital Desk.

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