Microfinancier eyes change in lending status

Nairobi; Kenya: Microfinance institution, Musoni Kenya Ltd, has announced plans to convert from a credit microfinance institution to a deposit taking micro lender.

Chief Executive Officer James Onyutta said they are working to improve operations in readiness for licence application to the Central Bank of Kenya.

"We are in very close steps of submitting our certificate request to CBK and hope to start as a deposit taking institution by 2015," he stated. Once the proposal is accepted, Onyutta explained the ambitious growth strategy will increase their product portfolio and serve their clients better by encouraging a saving culture.

For it to be licensed, the regulator requires Musoni to have a minimum of Sh60 million for its nationwide operations. "We have a solid capital base and can meet the regulatory requirements," he noted.

The CEO observed that they enjoy excellent support from their development partners, with an eye on improving financial inclusion among the rural population. Its partners include Musoni Netherlands, the technology service provider, Grameen Foundation, KFW Bank and the MicroVest Capital Funds.