This archive report was first published on 26 July 2021.
Published on July 26, 2021, Mwananchi Credit Limited is breaking new ground by introducing trade finance products to its portfolio. The company, which has grown to become one of the leading providers of logbook loans and car financing, is now offering cashless bid bonds, performance bonds, advance payment guarantees, and letters of credit.
According to the company's CEO, Dennis Mombo, many Kenyans are excluded from lucrative government and parastatal tenders due to tough conditions set by financial institutions. These institutions often require 100% cash cover for bid bonds or performance guarantees, making it difficult for individuals to participate.
Traders importing high-value machinery and other stock are also forced to pre-pay to the seller, which can put a strain on their liquidity. A letter of credit would have given them more time to manage their finances, but this option is not always available.
Speaking at the product rollout meeting, Mr. Mombo emphasized Mwananchi Credit's commitment to making trade finance services accessible to the common person. He stated, 'Mwananchi Credit seeks to make these services available easily to the common person as it seeks to live up to its billing as the true mwananchi-centred credit company.'
