What you need to know:
- Microfinance institution seeking to tap into Machakos county's vibrant business environment.
- The financial institution noted that in Machakos there is a credit gap that needs to be filled.
Momentum Credit, a non-deposit taking financial institution, has opened its 12th branch in Machakos County, targeting small businesses and individuals requiring working capital, but unable to get the same from banks.
The microfinance institution said its entry into Machakos would continue lending to businesses mainstream banks consider risky and thus deny credit.
Momentum Credit CEO Job Muriuki noted that Small and Medium-sized Enterprises (SMEs) are the drivers of Kenya’s economy, yet they have been starved of credit in the country.
He said Momentum Credit's entry into Machakos considered the reality that the county has been established as a sustainable and vibrant business destination.
“We are intentional about supporting the realisation of Vision 2030 – transforming Kenya into a newly industrialising, middle-income country, providing a high quality of life to all its citizens in a clean and secure environment,” he said.
He also noted that the passing of data protection regulations in the country would place confidence on clients, since rogue players in the industry would be eliminated, as legitimate ones are left to deliver credible non-bank lending.
The financial institution noted that in Machakos, which was ranked among the top five biggest contributors to Kenya’s GDP, there is a credit gap that needs to be filled.
“It pleases us to collaborate this position by enabling emerging businesses and entrepreneurs realise their aspirations and expand their possibilities through improved access to finances,” Mr Muriuki said.
The lender offers facilities such as insurance premium financing and a self-service revolving credit limit facility - secured by a motor vehicle and motor import financing that reduces the cost of acquiring a car by up to 20 per cent.
Part of the institution's strategy is supporting businesses that are yet to recover from the effects of Covid-19.