MICROCAPITAL BRIEF: Kenyan Microfinance Start-Up Remu DTM Limited Acquires Deposit-Taking License
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Thursday, January 20, 2011

MICROCAPITAL BRIEF: Kenyan Microfinance Start-Up Remu DTM Limited Acquires Deposit-Taking License

» Posted by in Category: Africa,Regulation,Trends/Challenges at 12:03 am

The Central Bank of Kenya (CBK), Kenya’s central banking authority, has granted a license to start-up microfinance institution (MFI) Remu DTM Limited (Remu). The Microfinance Act of 2008 allows the CBK to license, regulate and supervise DTMs—institutions that provide loans to micro- or small enterprises and low-income households, and that receive money by way of deposits. Previously, MFIs could issue loans but were not allowed to take money from the public.

Remu is reportedly the fifth DTM to be licensed under the new act, but is the first outfit to start operations from scratch: the other four had an existing clientele and loan book. Remu will primarily focus on offering loan products to meet the capital needs of small and medium-sized enterprises (SMEs) [1,2].

By John Howard-Smith, Research Associate

About Central Bank of Kenya (CBK): Established in 1966, the Central Bank of Kenya is the country’s central banking authority. CBK enacted the Microfinance Act in 2008 to pave the way for the licensing of microfinance institutions (MFIs) that take deposits from the public, known as deposit-taking microfinance institutions (DTMs). Professor Njuguna Ndung’u was appointed Governor of Central Bank in March 2007.

About Remu DTM Limited: Remu DTM Limited, registered in 2009 in Nairobi, Kenya, was licensed by the Central Bank of Kenya (CBK) in 2011 as a deposit-taking microfinance institution (DTM). Remu will primarily focus on offering loan products to meet capital needs of small and medium-sized enterprises (SMEs). Financial information for the organization is currently unavailable.

[1] Central Bank of Kenya Press Release: “CBK Licences The Fifth Deposit Taking Microfinance Institution—Remu DTM Limited”, http://www.centralbank.go.ke/downloads/PublicNotices/PRESS%20RELEASE%20Remu%20DTM%20licence.pdf

[2] Business Daily: “CBK licenses first start-up microfinance institution”, http://www.businessdailyafrica.com/CBK%20licenses%20first%20start%20up%20microfinance%20institution/-/539552/1090606/-/3gswfe/-/

MicroCapital.org story, December 29, 2010: “MICROCAPITAL BRIEF: Small and Micro Enterprise Programme (SMEP) of Kenya Licensed to Take Deposits”, http://www.microcapital.org/microcapital-brief-small-and-micro-enterprise-programme-smep-of-kenya-licensed-to-take-deposits/

MicroCapital.org story, April 22, 2010: “MICROCAPITAL BRIEF: Central Bank of Kenya (CBK) Licenses Kenya Women Finance Trust (KWFT) as Deposit Taking Microfinance Institution (MFI)”, http://www.microcapital.org/microcapital-brief-central-bank-of-kenya-cbk-licenses-kenya-women-finance-trust-kwft-as-deposit-taking-microfinance-institution-mfi/

MicroCapital’s Microfinance Universe profile: Central Bank of Kenya (CBK), http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Central+Bank+of+Kenya+(CBK)

MicroCapital’s Microfinance Universe profile: Remu DTM Limited, http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Remu+DTM+Limited

Browse the MicroCapital Universe and add your entry to the wiki at: http://www.microcapital.org/microfinanceuniverse/

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