Kenyan micro-lender mulls local expansion

Kenyan-based micro-lender Jijenge Credit has announced plans to expand its footprints across the country owing to the growing demand from borrowers.

In an exclusive interview with People Daily, the company’s managing director Peter Macharia said that the institution will next month open its second Nairobi outlet to tap into the existing opportunities for borrowers in urban centres who are keen on securing fast and quick loans to boost their businesses.

“We have seen a consistent gradual upsurge in the number of loan applications in the last few months and by setting up another outlet, we will be looking to meet this demand while at the same time addressing the financing hurdles from our borrowers,” said Macharia.

The company further seeks to double the number of its staff to meet the anticipated demand for loans as December draws near – a typical period for spenders keen to acquire a new asset such as land or just movable asset like a car.

The firm’s greatest specialty is mobile lending, which is efficient and effective that is tapping into the demand for microfinance products among SMEs who are the company’s main client. Jijenge Credit today has over 5,000 active clients with a collective clientele of over 20,000 and a five-year future target to expand into a deposit-taking financial powerhouse.

Jijenge Credit which operates in other markets such as Tanzania and Uganda targets clients who are unable to access financial services from banks and those seeking loans approval over a short period of time within one hour.

The company specializes in Title Deed Loans, Check-off loans, School emergency loans, import duty finance, LPO financing, bid bonds as well as asset financing among others.

The introduction of law capping interest rate to bare minimum has helped usher in a new wave of mobile lending platforms that are keen to finance the small scale borrowers that the conventional lending institutions have labelled ‘risk-averse’ thanks to the contentious law.

Available statistics show that since the first mobile lending platform in 2012, M-Shwari, by CBA and telecommunications provider Safaricom, the value of mobile payment has surged by 128 per cent to hit 343 billion as of December last year from Sh150 billion six years ago – with this number expected to escalate by year end and beyond..

The number of transactions has grown even faster, doubling from 56 million in 2012 to 155 million in 2018.

    Leave a Reply

    Your email address will not be published. Required fields are marked*