This archive report was first published on 1 November 2019.
On November 1, 2019, U&I Microfinance Bank secured a $1 million loan from Oikocredit, a Dutch social impact investor, to support lending to small businesses in Nairobi.
According to Caroline Mulwa, Oikocredit's Investment Manager, the loan will enable U&I to expand its lending activities, providing access to finance for its clients and creating a sustainable impact for people on low incomes.
U&I Microfinance Bank, one of the 13 microfinance banks licensed and regulated by the Central Bank of Kenya, was established in 2007 as a credit-only institution. It has five branches, including two in Nairobi's Gikomba market, one in Nairobi's River Road, and another in Thika.
The micro lender, which was granted a license in 2013, mainly finances micro and medium businesses. U&I's chairman, Muturi Kamande, stated that the credit line will enhance and uplift the bank's lending to small enterprises, giving the local economy an extra boost.
Kenyan banks have also taken substantial loans from global funds, including the International Finance Corporation, European Investment Bank, Agence Française de Développement, and the African Development Bank, attracted by relatively favourable terms of debts like lower interest rates and longer maturity.
