Momentum Credit targets agriculture sector with new Embu branch
The ribbon-cutting ceremony during the official opening of Momentum Credit's new branch in Embu County.
What you need to know:
- Lender says its main plan is to support enterprises engaged in transportation of agricultural produce.
- It will also support individuals and businesses who want to import private and other types of vehicles.
Small and Medium-sized Enterprises (SMEs) within agricultural sector value chains in Embu County will benefit more access to working capital solutions, after Momentum Credit, a local non-deposit-taking financial institution expanded its operations to the county.
According to Momentum Credit, the newly-opened branch will target SMEs and individuals with difficulty in accessing credit from the mainstream banks.
The lender says it has ventured into lending to agricultural sector for the first time mainly targeting finance transporters of agricultural produce, through acquiring right vehicles and payment of insurance premiums.
Mr Job Muriuki, Momentum Credit CEO, said the lender will focus on supporting farming by financing some of the supply chain players, as a way of ensuring more liquidity.
“Momentum Credit is not known as a lender to the agricultural sector. However, what makes agriculture a viable sector is if all those participants in this industry are able to reliably transport their produce from these locations to the markets. That’s where Momentum comes in.
“It is incumbent upon us to support Embu, a largely agricultural county, improve its resident’s liquidity. This in turn drives inclusive economic growth, job creation and poverty reduction,” Mr Muriuki said.
The lender said while its main plan is to support enterprises engaged in transportation of agricultural produce, it would also support individuals and businesses who want to import private and other types of vehicles, by sourcing them from outside markets.
The cake-cutting ceremony during the official opening of Momentum Credit's new branch in Embu County.
“We have additionally purposely redefined our market approach transitioning from a financial lender to a solution provider enabling Kenyans; access liquidity, own motor vehicles at a significantly lower cost compared to prevailing market rates, afford vehicles through Motor Import Financing and acquire Insurance Premium Financing – a solution that reduces the financial burden otherwise associated with lumpsum payments,” Mr Muriuki said.
The lender says it wants to play a role in filling the big gap of Kenyans unable to access bank credit, with about 40 per cent only accessing.
Momentum Credit has been on an expansion drive this year, having opened another branch in Machakos just last month.
“The 2022 expansion drive is geared towards improving proximity to clients - driving convenience and supporting economic recovery post the Covid-19 pandemic,” the lender said.
