This archive report was first published on 27 November 2019.
On November 27, 2019, the Central Bank of Kenya (CBK) gave Murang'a-based firm Akuria Investments the green light to offer banking services through its wholly-owned deposit-taking subsidiary, Muungano Micro-Finance Bank (MMFB).
CBK Governor Patrick Njoroge announced in a special Kenya Gazette notice that Muungano was now free to carry out banking business, effective October 30, 2019.
Founded by Muhika Kageni and late stockbroker Mwangi Thuo, Akuria Investments had been working towards this milestone for 49 years.
The firm had raised Sh900 million in seed capital from its 300 individual shareholders, with the funds used to purchase prime parcels of land in Nairobi, Juja, and Murang'a.
Among the rental properties owned by Akuria Investments are Muhika Kageni, Ngara Heights, and Rhapta Terraces in Nairobi, as well as the 20,000-square feet Eastend Mall in Kangari, valued at Sh800 million.
MMFB, a community microfinance bank targeting farmers, plans to set up its head office at Eastend Mall, with Lydia Kibaara as CEO.
“MMFB will offer the people of Kangari, Murang’a, and Kenya savings and credit products that enhance financial prosperity, improve standards of living, and quality of life,” said Muungano chairman Patrick Karanja.
Kenya has 12 microfinance institutions, with Sh41 billion in customer deposits as of December 2018, a 5.3 percent rise from Sh38.9 billion reported in 2017.
