Kifedha Limited is a non deposit taking micro-finance institution operating in Nairobi and its outskirts. It is a provider of alternative working capital for SMEs (small and medium enterprises)and personal loans.
According to a survey in 2013 by Deloitte, small businesses in Kenya create 80% of all jobs. Despite this, the same businesses only supply 3% of the national GDP. One of the causes is limited access to finance. Due to the recent cap on interest rates, commercial banks are more strict about who they issue loans to.Data from the Kenya National Bureau of Statistics shows that 52% of all loan applicationsmade by SMEs are rejected. Recent implementation of an international accounting standard called IFRS 9 is another contributor.This standard factors bad debt into a bank’s risk calculations. Thus SMEs are judged as being more high risk than ever before. Kifedha was created to help bridge this funding gap.
Kifedha has operated in Nairobi and its environs over the last 3 years. Products on offer include auto logbook loans, check off loans, import duty finance and general insurance services. The company has 4 branches located in Ngara,Thika, Kitengela and Ongata Rongai. Prospective customers have face to face meetings with staff for vetting and to find out more about their needs, preferences and challenges. After the loan has been approved, disbursement happens within 24 hours.These loans are typically used for business operations and personal emergencies. 30% of all loans are to repeat customers which is an indication of service satisfaction and the value of a continuous journey with their clients.
The company has been able to make a strong positive impression on the market by focusing on customer needs and heavy emphasis on learning from past experience.
Peter K, a repeat customer spoke about his experience with Kifedha.
“I run a primary school. There were cash flow challenges and we had to pay some suppliers and acquire some equipment. The turnaround time needed to be as short as possible.After inquiries, I found out that the terms were reasonable.The time between my application and receipt of the money was 2 days. I had some delays when it came to repayment but after taking the initiative to call and arrange a meeting, we were able to renegotiate better repayment terms. The loan was cleared comfortably.”
Kifedha Limited’s future plans involve national expansion, improving operational efficiency and in depth business advisory services.
More information on Kifedha Limited can be found at their website: https://www.kifedha.co.ke/
Release ID: 88922782