Microfinance Focus, June 28, 2011: Reiterating its commitment towards financial inclusion, Central Bank of Kenya granted a licence to Chase Bank’s wholly owned Deposit Taking Microfinance Subsidiary ‘Rafiki’, allowing it to carry out nationwide deposit-taking microfinance business.

With its Head Office in Nairobi, Rafiki becomes the sixth deposit taking microfinance institution to be licensed following the licensing of four nationwide and one community-based deposit taking microfinance institutions (DTM).

According to the Central Bank of Kenya, deposit taking microfinance institutions had a total of 47 nationwide branches, as on 30th April 2011. These institutions had mobilized deposits worth KShs.  9 billion and had a total loan portfolio value of KShs. 15 billion.  The total number of active deposit accounts and loan accounts stood at 1.3 million and 0.5 million, respectively.

An increasing number of commercial banks are penetrating the microfinance industry either through establishing subsidiaries to specifically engage in the deposit taking microfinance business or through downscaling to offer  appropriate  products  to  the  unbanked and underbanked population.

In December last year, CBK licensed SMEP Deposit Taking Microfinance Limited. It was the fourth DTM to be licensed after Faulu Kenya Deposit Taking Microfinance, Kenya Women Finance Trust Deposit Taking Microfinance (KWFT DTM) and Uwezo DTM Limited, which were licensed in May 2009, March 2010 and November 2010, respectively.

Community Deposit taking microfinance institution, Uwezo DTM Limited was also granted a license by the Central Bank in November 2010.