MICROCAPITAL BRIEF: Central Bank of Kenya Licenses Century Deposit Taking Microfinance (DTM)

Century Deposit Taking Microfinance (DTM), a newly established microfinance institution (MFI) based in Nairobi, was recently licensed by the Central Bank of Kenya to operate nationwide.Century DTM, servicing primarily rural farmers and agricultural projects, will offer credit and saving products using a value-chain financing approach across four agricultural stages: preparatory, pre-harvest, post-harvest and processing. Century DTM will also offer financial services to micro-, small and medium-sized enterprises (MSMEs) that, “serve the farmers, as buyers and suppliers.”

Century DTM is the seventh Kenyan MFI to accept deposits. Nationwide, deposit-taking MFIs have assembled KES 12.3 billion (USD 142 million) in deposits and hold an aggregated loan portfolio of KES 17.9 billion (USD 207 million) as of June 2012. The 34 Kenyan providers of microfinance services that report to the nonprofit, US-based data provider Microfinance Information Exchange (MIX), hold a total of USD 1.7 billion in loans disbursed to 1.1 million active borrowers as of 2011. As of the same period, 17 Kenyan microfinance providers report USD 2.1 billion in deposits from 6.7 million depositors. The number from MIX includes both MFIs and traditional banks offering microfinance services.

By Sarah Benali, Research Associate

About Century Deposit Taking Microfinance                                                                                      Century DTM, the seventh Kenyan MFI to accept deposits, will operate nationwide, having received a license from the Central Bank of Kenya in October 2012. No financial information on the organization is available. Century DTM is predominantly owned by Kenyan corporations and local investors.

About Central Bank of Kenya
Established in 1966, the Central Bank of Kenya is the country’s central banking authority. CBK enacted a Microfinance Act in 2008 to pave the way for the licensing of deposit-taking microfinance institutions (DTMs). Professor NjugunaNdung’u was appointed Governor of Central Bank in March 2007 and continues to serve in that capacity as of April 2012.

Sources and Additional Resources

Central Bank of Kenya Press Release: “CBK Licenses the Seventh Deposit Taking Microfinance Institution – Century,” October 2012, http://www.centralbank.go.ke/images/docs/media/2012/press-release-century-dtm.pdf

The-star.co.ke Story: “CBK Licenses Century to take deposits,” October, 2012, http://www.the-star.co.ke/news/article-88890/cbk-licenses-century-take-deposits

MicroCapital.org Story: “Financial Sector Deepening: Central Bank of Kenya Regulations Cuts Profits of Kenyan Microfinance Institutions,” April 23, 2012, https://www.microcapital.org/microcapital-brief-financial-sector-deepening-central-bank-of-kenya-regulations-cuts-profits-of-kenyan-microfinance-institutions/

MicroCapital.org story: “MICROCAPITAL BRIEF: Central Bank of Kenya to Allow Deposit-Taking Microfinance Institutions (DTMs) to Use Agents to Provide Financial Services,”January 10, 2012, https://www.microcapital.org/microcapital-brief-central-bank-of-kenya-to-allow-deposit-taking-microfinance-institutions-dtms-to-use-agents-to-provide-financial-services/

MicroCapital Universe Profile: Central Bank of Kenya  https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Central+Bank+of+Kenya+%28CBK%29

MicroCapital Universe Profile: Century DTM                                                       https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Century+DTM

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