Leading Microfinance Bank in Kenya, Faulu Bank has received US $13million capital injection from parent company Old Mutual Africa Holdings Limited to support its growth strategy hinged on growing its banking business and customer base.
Faulu, is banking on small and medium enterprises (SMEs) and business groups which account for the bigger chunk of its customer base, to grow revenue and expand in the counties as the economy gradually picks momentum after the Covid-19 disruption.
In February, the bank stepped up support to micro, small and medium enterprises and business groups to help recover from the impact of the pandemic. This includes trade finance solutions to larger SMEs in construction, trade, agribusiness and import business.
Bank’s balance sheet
The capital boost also comes as the Bank, which is part of UAP Old Mutual Group, scales up financial support and solutions to microenterprises and business groups comprising over 150,000 customers. The UAP Old Mutual Group Chief Executive Officer, East Africa, Arthur Oginga says the additional capital will be deployed in strengthening the Bank’s balance sheet.
“Our growth strategy is focused on addressing the unique financial needs of small businesses forming the bulk of our customer base. This requires resources hence the support we have received from Old Mutual Africa Holdings Limited will be able to sustainably accelerate Faulu’s business objectives,” said Oginga.
“Our primary focus as a Bank is on unlocking opportunities through trade finance under flexible terms. This will be achieved through the banks strategic partners including the county governments, companies in the automotive industry, agribusiness as well as the local community,” said Faulu CEO Apollo Njoroge.
