Faulu Microfinance Bank Limited plans to lend up to Sh 300 million over the next 12 months to Small and Medium Enterprises (SMEs) in the Limuru region to expand their operations.
This is after the bank opened a new branch in Limuru Town in Kiambu County, eyeing the rich agricultural and commercial potential in the region, with specific focus on farmers and small enterprises in the agribusiness value chain.
Faulu Bank CEO Apollo Njoroge stated that Limuru is strategically located in one of the country’s most productive agricultural regions and is a fast-growing commercial hub.
The 300 million is part of the Sh 3 billion the Bank has set aside for SME’s across key sectors like agriculture to help them recover from economic challenges related to Covid-19.
Njoroge said, “Limuru is a major tea producing area but we also like the vibrant businesses we are seeing here. Having a presence here positions us to scale up our support to small enterprises.”
He added that Faulu targets to lend to over 1,000 customers in Limuru most of whom are involved in poultry, dairy, horticulture and other agricultural value chain activities including input supply.
Faulu will also provide business training for its SME and individual customers to empower them with skills to grow their businesses.
Kiambu County Governor, James Nyoro, the chief guest at the launch, hailed Faulu’s move to open a third branch in the county saying it will create more opportunities for residents to improve their economic and financial wellbeing.
Faulu Bank is also forging partnerships with national and county governments given that many of its customers are suppliers of public goods and services.
“A lot of business is happening in the counties and by offering products like LPO financing, we are providing much needed financial support to enable our customers meet their contractual obligations,” said Njoroge.
Last month, Faulu announced a Sh 500 million trade finance facility for larger SMEs involved in construction, trade, agribusiness and import business.
Njoroge reiterated the bank’s commitment to helping its customers recover from economic challenges related to Covid-19.