NEWS WIRE: Kenya: Customers of Microfinance Institution Faulu Kenya Offered Free Payments Via Postal Corporation’s PostaPay

Source: Daily Nation.

Original article available here.

NAIROBI, July 11 – Customers of Faulu Kenya can now access and repay their loans through 330 Postal Corporation of Kenya outlets across the country at no cost.

They will also receive and send the money in real time through the corporation’s electronic funds transfer, PostaPay.

“When a client applies for a Faulu loan, all she or he has to do is to simply indicate the nearest post office that offers PostaPay and we will send the money to her or him,” Ms Lydia Koros, the Faulu Kenya managing director said.

The service, courtesy of an agency agreement between Faulu Kenya and Posta that was launched on Thursday, increases the 17-year-old microfinance institution’s network by over 370 percent from its current 70 outlets.

Speaking during the launch at Teleposta Towers, Nairobi, Ms Koros said the service drastically reduces the distance their clients – currently standing at 120,000 – would travel to access financial services.

Ms Koros said Faulu Kenya has applied for licensing under the Microfinance Act 2006 to take deposits to diversify its product portfolio.

Postmaster general, Mr Fred Odhiambo, said the partnership, which was launched on a pilot basis a few months ago, has seen the corporation disburse KES 129.3 million (USD 1.29 million) in loans and collect repayments to the tune of KES 267.8 million (USD 4.0 million).

“This is a demonstration that the partnership is making an impact on the lives of many Kenyans who are just a post office away from accessing their loans from Faulu Kenya,” Mr Odhiambo said.

In a speech read on his behalf by economic secretary, Dr Kamau Thugge, Treasury PS Joseph Kinyua decried the limited access to financial services among lower income households and small entrepreneurs.

A FinAcess study released last October showed that only 4.6 million Kenyans, or 27 percent, out of 17.4 million adults are served by a financial institution.

By Justus Ondari, Daily Nation

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