Accessing Finance in Kenya

Most women in Kenya work in the agricultural sector and produce most of the agricultural produce in the country. However, when it comes to accessing credit and other forms of agricultural finance, women’s access drops quickly.

Within the non-agricultural sector of the informal economy, women are also very active in informal cross-border trade, where they are involved in a large volume of the goods traded across borders. Similar to those in the agricultural sector, women in informal cross border trade face several huddles in accessing finance.

Public and private institutions in Kenya have identified women’s challenges in accessing finance and have established various programmes to bridge the gap.
angle-left Caritas Microfinance Bank

Caritas Microfinance Bank

About Caritas

Caritas Microfinance Bank is licensed and regulated by the Central Bank of Kenya and offers a full range of innovative and customized financial solutions to its clients.
Loans provided by Caritas

Loan 1

LPO  Financing

 

Loan description

LPO financing allows clients who have obtained purchase orders or letters of award to deliver goods and services or to carry out contractual works.

Interest rate

Interest Rate of 2% per month reducing balance

Collateral

Flexible security requirement

Grace period

N/A

Duration

Maximum period of 90 days depending on the terms of the LPO

 Ceiling amount

From KES 50,000 to KES 10Million

Up to 70% financing of costs of items to be supplied directly paid to the supplier account

 

Requirements

  • Valid LPO from a reputable reputed institution or the banks list of corporate companies
  • Pro forma invoice or quotation for items of purchase from the supplier(s)
  • Bank Statement for the last 6 months for ( for non-customers)
  • Valid business registration and permit documents
  • Valuation report where applicable
  • Audited accounts for amounts above KES 5M and Management Accounts for amounts above KES 2M
  • List of past contracts completed
  • Aging analysis for debtors/creditors
  • Copy of proposed collateral for borrowing
  • Processing fees of 3%

Loan 2

Mustard Seed Development Loan

 

Loan description

A loan designed for micro, small and medium business growth needs. Funds can be used for working capital, asset acquisition, business expansion

Interest rate

Competitive interest rates

Collateral

Flexible collateral requirements

Grace period

N/A

Duration

Up to 4 years with flexible repayment plan

Ceiling amount

N/A

Requirements

N/A

Loan 3

Solidarity Group Loans

 

Loan description

This is a loan product targeting registered groups allowing them to finance development project. The approval process is quick and there is no penalty for early repayment

Interest rate

Competitive interest rates

Collateral

Flexible security requirements

Grace period

N/A

Duration

Flexible repayment arrangement

Ceiling

N/A

Requirements

N/A

Loan 4

Invoice discounting

Loan description

Invoice discounting enables a client to get immediate value for their invoices. It is advancing of funds to suppliers holding invoices that they have already issued to buyers for completed jobs. Approval process is quick.

Interest rate

Competitive interest rates

Collateral

N/A

Grace period

N/A

Duration

Flexible repayment arrangement

Ceiling

N/A

Source

 
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50 MAWSP

 

The African Development Bank partners with EAC, COMESA & ECOWAS Regional economic blocks to implement the 50 Million African Women Speak Networking Platform Project.The platform is intended to empower millions of women in Africa to start, grow, and scale up businesses by providing a one-stop shop for their specific information needs. Click on the image for more information

 

50MAWS Project engages East African Financial institutions for more financial inclusion. Click on the photo above for the full story