MICROCAPITAL BRIEF: Daraja Microfinance Latest to Be Licensed by Central Bank of Kenya

The Central Bank of Kenya (CBK) recently granted a license to Daraja Microfinance Bank Limited (Daraja MFB) to begin deposit-taking operations, making Daraja the tenth microfinance bank in Kenya [1]. The license allows Daraja MFB to mobilize savings from the general public. Daraja MFB will operate in the Dagoretti Division, an area within the capital of Kenya, targeting micro- and small enterprises [1].

Daraja MFB does not report financial data to the US-based nonprofit Microfinance Information Exchange (MIX), and such information is not otherwise available. MIX lists 51 microcredit providers in the country with an aggregate loan book of USD 3.2 billion [2].

By Jeff Pierce, Research Associate

About Central Bank of Kenya (CBK)

Established in 1966, the Central Bank of Kenya is the country’s central banking authority. A Microfinance Act passed in 2008 paves the way for the licensing of deposit-taking microfinance institutions (DTMs). Professor Njuguna Ndung’u was appointed Governor of Central Bank in March 2007 and continues to serve in that capacity as of 2015.

Sources and Additional Resources:

[1] Central Bank of Kenya (CBK) Press Release: “CBK LICENSES THE TENTH MICROFINANCE BANK – DARAJA MICROFINANCE BANK LIMITED,” https://www.centralbank.go.ke/images/docs/media/Press%20Releases/Press_Release_on_Licensing_of_Daraja_MFB.pdf

[2] Microfinance Information Exchange: “Kenya Market Profile,” http://mixmarket.org/mfi/country/Kenya

MicroCapital Universe Profile: Central Bank of Kenya (CBK)

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

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/

Similar Posts: