Microfinance Bank, Faulu has received a Ksh. 1.45 billion capital injection from its parent company, Old Mutual Africa Holdings Limited to support its growth strategy hinged on growing its banking business and customer base which largely comprises Small and Medium Enterprises (SMEs) and business groups.
UAP Old Mutual Group Chief Executive Officer, East Africa, Mr. Arthur Oginga says the additional capital will be deployed in strengthening the Bank’s balance sheet as it offers a full array of financial solutions and expands its footprint across the country.
“Our growth strategy is focused on addressing the unique financial needs of small businesses forming the bulk of our customer base. This requires resources hence the support we have received from Old Mutual Africa Holdings Limited will be able to sustainably accelerate Faulu’s business objectives,” said, Mr. Arthur Oginga.
The capital boost also comes as the Bank scales up financial support and solutions to micro enterprises and business groups comprising over 150,000 customers.
In February, Faulu stepped up support to Micro, Small and Medium Enterprises (MSMEs) and business groups to help them recover from the impact of the pandemic. This includes trade finance solutions to larger SMEs in construction, trade, agribusiness and import business.
“With many of our customers struggling to rebuild their businesses in a challenging environment, our primary focus as a Bank is on unlocking opportunities through trade finance under flexible terms. This will be achieved through the banks strategic partners including the county governments, companies in the automotive industry, agribusiness as well as the local community.” said Faulu CEO Mr. Apollo Njoroge.
Faulu is also merging some branches following a strategic review of its operations to improve efficiency. The Bank recently merged its Mwea and Maua branches with the Embu and Meru branches respectively, a move it said was geared to improve efficiency and deliver a better service experience to its customers. Faulu also consolidated its Njoro marketing office with the Nakuru branch, and the Taveta marketing office is now part of the Voi branch.
“We are consolidating our business to optimize operational and cost efficiencies, while leveraging alternate channels like mobile banking and huge agency network Agency banking in line with emerging market trends and customer dynamics,” said the Faulu Bank CEO.
According to Think Business latest banking survey, Faulu, which was established in 1991, is the leading Microfinance Bank in Kenya with a deposit book and a loan book of Ksh. 23 billion and Ksh. 19.5 billion respectively.
