What we can do for you

Financial Institutions

Financial Institutions (MFI Banks, MFI, Sacco’s & Credit Only Institutions)

We offer affordable and sustainable credit to financial institutions/ intermediaries for on lending to micro, small and medium enterprises in general enterprise, Agribusiness, manufacturing, distribution and renewable energy and water management technologies.

Eligibility Criteria

  • Must be incorporated in Kenya with full or partial local ownership, compliance with the licensing /legal requirements.
  • Have a minimum 500 active clients & a minimum performing portfolio of 10m
  • Provide the following:
  • 4 years audited accounts
  • Business Plan/ Strategic Plan /or Current Action Plans
  • Demonstrate ability to raise requisite collateral

Other requirements

  1. Have an appropriate governance structure.
  2. Demonstrate strong demand for products and services in its areas of operation
  3. Provide evidence or commitment that they will use the funds for the intended purpose.
  4. Demonstrate acceptable accounting and internal control systems.

Financial Requirements

Financial ParameterKey drivers

Maximum/Minimum

Threshold

Profitability

Operating Self Sufficiency

(OSS)

100%
Cost income ratio<80%
Return on Assets3%
Return on Equity15%
Liquidity

Liquid Assets to Total short term

Deposits

15% for Saccos

20% for MFIs

CapitalCore Capital to Risk Assets 10% for MFIs/ Saccos
Core Capital to Deposits 8% for MFIs/Saccos
External Debt to Total Assets 25%
External Debt to Equity

 6 times of Equity (FIs Only)

2 Times for SMEs

Asset QualityPAR>30days 10%