Faulu Microfinance Bank Limited

Faulu Microfinance Bank Limited

Type	Private Subsidiary
Industry	Banking and Finance
Founded	1991
Headquarters	Nairobi, Kenya
Key people	John Mwara Kibochi Managing Director
Products	Loans Micro-Insurance
Parent	Old Mutual
Website	Homepage

Faulu Microfinance Bank Limited is an Microfinance institution in Kenya. The word Faulu is Swahili for Succeed.

Overview

Faulu Microfinance Bank Limited, commonly referred to as Faulu Kenya, is a Microfinance Bank based in Kenya. It is regulated by the Central Bank of Kenya.^[1]

History

Faulu Microfinance Bank Limited was founded in 1991 by Food for the Hungry International (FHI) a Christian organization as an NGO whose main objective was to provide credit to lower income households and micro-enterprises in Nairobi. It received funding from various donors, among them the Department for International Development (DFID) and the United States Agency for International Development (USAID), Faulu grew over the years to a level of near financial self-sufficiency. In order to have more access to commercial funding, Faulu Kenya was incorporated into a private company in 1999.^[2]

In 2008, Faulu Microfinance became the first micro-finance institution to obtain the Deposit Taking Licence from the Central Bank of Kenya.^[3]

Faulu Kenya became a Kiva partner on July 18, 2009. This gave them access to funding through the Kiva network of partners. As of July 2014, Faulu had raised over USD 2.8 Million in loans through Kiva.^[4]

In April 2014, Old Mutual completed it acquisition of 67% of Faulu Kenya ^[5] through a KSH 2.8 billion capital injection.^[6] The acquisition gave Old Mutual a greater market reach through the Faulu Kenya branches across Kenya and gave Faulu Kenya greater capital to meet statutory requirements.

Ownership

The stock of Faulu Kenya is privately held with Old Mutual being the largest shareholder with 67% of the issued capital.

Operations

Mobile Banking

Banks in Kenya are embracing mobile payment services due to the popularity of M-Pesa. Paying bills and for online services is simpler, faster and more convenient with mobile money. M-Pesa is the most popular mobile payment option in Kenya.^[7] Faulu Kenya is one of the micro-finance institutions in Kenya that support mobile banking. Clients can use M-Pesa to deposit money into their Faulu accounts.^[8]

Faulu Chama Loans And Saving Products

Other reasons for the good ratings of Faulu Kenya include their accessibility through the many Faulu Bank branches in all counties in Kenya, competitive interest rates on loans and savings, and support for Chamas through the Faulu Chama loans (Chama is Swahili for Party or Group). A Faulu Chama is a self-help group or welfare group.^[9] Chamas benefit by either saving for a later investment or by accessing a Chama loan.

References

External links

Banks of Kenya

Central bank	Central Bank of Kenya

Commercial bank	African Banking Corporation Bank of Africa Barclays Bank Bank of Baroda Bank of India CFC Stanbic Bank Chase Bank Citibank NA Kenya Commercial Bank of Africa Consolidated Bank of Kenya Cooperative Bank of Kenya Credit Bank Development Bank of Kenya Diamond Trust Bank East African Development Bank Ecobank Kenya Equatorial Commercial Bank Equity Bank Family Bank FidelityBank First Community Bank Giro Commercial Bank Guaranty Trust Bank (Kenya) Guardian Bank Gulf African Bank Habib Bank Habib Bank AG Zurich Housing Finance Company of Kenya I&M Bank Limited Imperial Bank Limited Jamii Bora Bank Kenya Commercial Bank Middle East Bank Kenya National Bank of Kenya NIC Bank Oriental Commercial Bank Paramount Universal Bank Post Bank Prime bank Sidian Bank Standard Chartered Kenya Trans National Bank Kenya United Bank for Africa Victoria Commercial Bank

Financial services organization	Diamond Trust Bank Group Equity Group Holdings Limited Commercial Bank of Africa Group Guaranty Trust Bank (East Africa) I&M Bank Group Kenya Commercial Bank Group NIC Bank Group

Foreign banks	Bank of China Bank of Kigali HDFC Bank Nedbank The Hongkong and Shanghai Banking Corporation First Rand

Defunct banks	Dubai Bank Kenya Euro Bank

Microfinance Institutions	Faulu Microfinance Bank Limited SMEP Microfinance Bank Kenya Women Microfinance Bank

Related Topics	Automated Teller Machine (ATM) ATM usage fees De-Materialisation (DEMAT) Foreign Exchange (FOREX) Financial Services Real Time Gross Settlement (RTGS) National Electronic Fund Transfer (NEFT) Structured Financial Messaging System (SFMS)

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