Microfinance banks in Kenya are vital in bridging the financial access gap, particularly for low-income individuals, small business owners, and rural communities. Unlike commercial banks, MFBs focus on providing affordable financial services to underserved populations, fostering economic empowerment and supporting Kenya’s Vision 2030 for financial inclusion. The Central Bank of Kenya (CBK), under the Microfinance Act of 2006, licenses and regulates these institutions to ensure they meet stringent operational and financial standards. As of 2024, 14 microfinance banks are licensed to operate, each contributing uniquely to Kenya’s financial ecosystem.
This guide explores each licensed MFB, their services, market impact, and how they drive financial inclusion. We’ll also delve into their operational models, challenges, and the role of digital technology in shaping the future of microfinance in Kenya.
Why Microfinance Banks Matter in Kenya
Microfinance banks are instrumental in addressing financial exclusion, a persistent challenge in Kenya where a significant portion of the population remains unbanked or underbanked. According to the CBK, MFBs promote savings, competition, efficiency, and financial inclusion by offering deposit-taking services and tailored financial products. Here’s why they matter:
- Financial Inclusion: MFBs target low-income clients, small entrepreneurs, and rural communities who lack access to traditional banking.
- Economic Empowerment: By providing loans and savings products, MFBs enable individuals and small businesses to invest in income-generating activities.
- Support for SMEs: Small and medium enterprises (SMEs) benefit from tailored loan products, fostering entrepreneurship and job creation.
- Rural Development: MFBs like Muungano Microfinance Bank focus on rural areas, supporting agricultural value chains and food security.
- Sharia-Compliant Options: Institutions like Salaam Microfinance Bank offer Islamic banking services, catering to diverse communities.
Directory of Licensed Microfinance Banks in Kenya
Below is a detailed overview of the 14 CBK-licensed microfinance banks, including their contact details, services, and unique contributions to Kenya’s financial landscape. The data is sourced from the official CBK directory and supplemented with insights from recent reports.
1. Caritas Microfinance Bank Limited
- Postal Address: P.O. Box 15352 – 00100, Nairobi
- Telephone: +254-020-5151500
- Email: info@caritas-mfb.co.ke
- Website: www.caritas-mfb.co.ke
- Physical Address: Cardinal Maurice Otunga Plaza, Ground Floor, Kaunda Street, Nairobi
- Date Licensed: 02.06.2015
- Branches: 2
Caritas Microfinance Bank is among the top five MFBs in Kenya, holding a significant market share due to its focus on community-driven financial solutions. It offers personal and business loans, savings accounts, and insurance products, targeting low-income earners and small businesses. Its strategic location in Nairobi’s central business district enhances accessibility.
2. Branch Microfinance Bank Limited
- Postal Address: P.O. Box 38319 – 00623, Nairobi
- Telephone: +254 711 082 130
- Email: kenya@branch.co; finance-ke@branch.co
- Website: https://branch.co.ke/
- Physical Address: Reliable Towers, 9th Floor, Mogotio Road
- Date Licensed: Not specified in directory
- Branches: 2
Branch Microfinance Bank is renowned for its mobile-first approach, leveraging digital lending through its mobile app. With a 2.8% market share, it focuses on providing quick loans via smartphones, making it a leader in digital microfinance. Its services include personal loans and savings products, appealing to tech-savvy clients and urban youth.
3. Choice Microfinance Bank Limited
- Postal Address: P.O. Box 18263 – 00100, Nairobi
- Telephone: +254-020-3882206/207, 0736-662218, 0724-308000
- Email: info@choicemfb.com
- Website: www.choicemfb.com
- Physical Address: Siron Place, Ongata Rongai, Magadi Road, Nairobi
- Date Licensed: 13.05.2015
- Branches: 1
Choice Microfinance Bank operates as a community-based MFB, focusing on Ongata Rongai and surrounding areas. It provides loans, savings, and remittance services, targeting small entrepreneurs and informal sector workers. Its single-branch model emphasizes localized service delivery.
4. Daraja Microfinance Bank Limited
- Postal Address: P.O. Box 100854 – 00101, Nairobi
- Telephone: +254-020-3879995, 0733-988888, 0707-444888, 0718-444888
- Email: daraja@darajabank.co.ke
- Website: www.darajabank.co.ke
- Physical Address: Karandini Road, off Naivasha Road, Nairobi
- Date Licensed: 12.01.2015
- Branches: 1
Daraja Microfinance Bank is another community-based MFB, serving Nairobi’s outskirts. It offers micro-loans and savings products, focusing on financial inclusion for low-income households and small businesses. Its localized approach ensures tailored financial solutions.
5. Faulu Microfinance Bank Limited
- Postal Address: P.O. Box 60240 – 00200, Nairobi
- Telephone: +254-020-3877290/3/7, 3872183/4, 3867503, 0711-074074, 0708-111000
- Email: info@faulukenya.com, customercare@faulukenya.com, contact@faulukenya.com
- Website: www.faulukenya.com
- Physical Address: Faulu Kenya House, Ngong Lane – Off Ngong Road, Nairobi
- Date Licensed: 21.05.2009
- Branches: 39
Faulu Microfinance Bank is one of the largest MFBs in Kenya, with a 39-branch network and a significant market share. It offers a wide range of products, including group loans, SME financing, and savings accounts, making it a dominant player in the sector.
6. Kenya Women Microfinance Bank PLC
- Postal Address: P.O. Box 4179-00506, Nairobi
- Telephone: +254-020-3067000, 2470272-5, 2715334-5, 0729920920, 0732633332, 0703-067000
- Email: info@kwftbank.com
- Website: www.kwftbank.com
- Physical Address: Akira House, Kiambere Road, Upper Hill, Nairobi
- Date Licensed: 31.03.2010
- Branches: 31
Kenya Women Microfinance Bank (KWFT) focuses on empowering women through tailored financial products, including group lending and savings schemes. With 31 branches, it is a key player in promoting gender-inclusive financial services.
7. Rafiki Microfinance Bank Limited
- Postal Address: P.O. Box 12755 – 00400, Nairobi
- Telephone: +254-020-2166401, 0730-170000/500
- Email: info@rafiki.co.ke
- Website: www.rafiki.co.ke
- Physical Address: Rafiki House, Biashara Street, Nairobi
- Date Licensed: 14.06.2011
- Branches: 17
Rafiki Microfinance Bank is the third-largest MFB in Kenya, with 19 branches across 11 counties. It offers savings, credit, and bancassurance services, targeting the “missing middle” between micro-enterprises and larger SMEs.
8. LOLC Kenya Microfinance Bank PLC
- Postal Address: P.O. Box 20833 – 00100, Nairobi
- Telephone: +254-020-2214483/2215384/2215387/8/9, 2631070, 0733-554555
- Email: info@lolckenya.co.ke
- Website: www.lolckenya.co.ke
- Physical Address: West Park Towers, Mpesi Lane, Off Muthithi Road, Westlands, Nairobi
- Date Licensed: 31.12.2010
- Branches: 2
LOLC Kenya Microfinance Bank, with a 1.9% market share, focuses on SMEs and low-income earners, offering micro-loans and savings accounts. Its digital platforms enhance accessibility for urban clients.
9. SMEP Microfinance Bank Limited
- Postal Address: P.O. Box 64063 – 00620, Nairobi
- Telephone: +254-020-3572799/2055761, 2673327/8, 0711606900
- Email: info@smep.co.ke
- Website: www.smep.co.ke
- Physical Address: SMEP Building – Kirichwa Road, Off Argwings Kodhek Road, Nairobi
- Date Licensed: 14.12.2010
- Branches: 7
SMEP Microfinance Bank is a key player in the sector, offering loans, savings, and insurance products. It serves both urban and rural clients, with a focus on SMEs and faith-based communities.
10. Sumac Microfinance Bank Limited
- Postal Address: P.O. Box 11687 – 00100, Nairobi
- Telephone: +254-020-2212587, 2210440, 2249047, 0738637245, 0725223499
- Email: info@sumacmicrofinancebank.co.ke
- Website: www.sumacmicrofinancebank.co.ke
- Physical Address: Consolidated Bank House, 2nd Floor, Koinange Street, Nairobi
- Date Licensed: 29.10.2012
- Branches: 3
Sumac Microfinance Bank was voted among the top MFBs in the 2025 Think Business Banking Awards, securing second runner-up in the overall best microfinance bank category. It offers SME loans, savings, and digital banking services.
11. U & I Microfinance Bank Limited
- Postal Address: P.O. Box 15825 – 00100, Nairobi
- Telephone: +254-020-2367288, 0713-112791
- Email: info@uni-microfinance.co.ke
- Website: www.uni-microfinance.co.ke
- Physical Address: Asili Complex, 1st Floor, River Road, Nairobi
- Date Licensed: 08.04.2013
- Branches: 1
U & I Microfinance Bank, with a 2.6% market share, provides personal and SME loans, focusing on small business owners and informal sector workers. Its single-branch model emphasizes community engagement.
12. Salaam Microfinance Bank Limited
- Postal Address: P.O. Box 1654 – 00100, Nairobi
- Telephone: +254-2212919, 0703591302
- Email: info@salaammfbank.co.ke
- Website: www.salaammfbank.co.ke
- Physical Address: Park Plaza, Ground Floor, Moktar Daddah Street, Nairobi
- Date Licensed: 08.11.2010
- Branches: 1
Salaam Microfinance Bank specializes in Sharia-compliant financial services, with a 1.6% market share. It caters to Muslim entrepreneurs, offering Islamic loans and savings products.
13. On It Microfinance Bank Limited
- Postal Address: P.O. Box 49316 – 00100, Nairobi
- Telephone: +254-020-2220648, 0736-028982, 0792-002300
- Email: info@onitmfbank.com
- Website: www.onitbank.com
- Physical Address: Jahazi Building, 2nd Floor, James Gichuru Rd, Nairobi
- Date Licensed: 21.05.2016
- Branches: 1
On It Microfinance Bank focuses on innovative financial solutions, offering loans and savings products tailored to urban clients. Its single-branch model leverages digital platforms for efficiency.
14. Muungano Microfinance Bank PLC
- Postal Address: P.O. Box 355-10218, Kangari, Murang’a
- Telephone: +254-020-4404173, 0706-974747, 0706-975522
- Email: info@muunganomfbank.co.ke
- Physical Address: Eastend Mall, Kangari Township, Kangari-Githumu Road
- Date Licensed: 30.10.2019
- Branches: 1
Muungano Microfinance Bank is the first MFB headquartered outside Nairobi, in Murang’a County. With a 1.8% market share, it focuses on agri-business, offering products like Avocado Boost and Maziwa Boost to support rural farmers.
Market Share and Classification
The CBK classifies MFBs into three categories—large, medium, and small—based on a weighted composite index of assets, deposits, capital, and active accounts. The top five MFBs (Faulu, Kenya Women, SMEP, Rafiki, and Caritas) hold 83.8% of the market, while six medium and three small MFBs account for the rest.
- Large MFBs: Faulu, Kenya Women, SMEP, Rafiki, Caritas
- Medium MFBs: Branch, Sumac, LOLC, U & I, Muungano, Salaam
- Small MFBs: Choice, Daraja, On It
Challenges Facing Microfinance Banks
Despite their contributions, MFBs face several challenges:
- Regulatory Compliance: Smaller MFBs struggle with CBK’s stringent requirements, particularly in capital adequacy and reporting.
- Competition: MFBs compete with mobile money platforms like M-Pesa and digital lenders, which offer faster loan disbursements.
- Proposed Legislative Changes: Amendments to the Microfinance Act and CBK Act may introduce dual compliance frameworks, complicating operations.
- Limited Resources: Small MFBs like Choice and Daraja face resource constraints, limiting their ability to expand.
The Role of Digital Technology
Digital innovation is transforming microfinance in Kenya. MFBs like Branch leverage mobile apps for loan disbursement, while others integrate internet banking and agency models. This shift enhances accessibility, reduces operational costs, and attracts younger clients. For instance, Rafiki Microfinance Bank uses mobile banking and VISA ATM networks to serve customers across 11 counties.
Future Outlook for Microfinance in Kenya
The microfinance sector is poised for growth, driven by:
- Digital Transformation: Increased adoption of mobile and internet banking.
- Rural Expansion: MFBs like Muungano are tapping into underserved rural markets.
- Policy Support: Government initiatives like Vision 2030 and the Big 4 Agenda emphasize financial inclusion and food security, aligning with MFB objectives.
- Sharia-Compliant Growth: Salaam Microfinance Bank’s model is likely to expand as demand for Islamic finance grows.
Microfinance banks in Kenya are pivotal in promoting financial inclusion, empowering SMEs, and supporting rural development. From Faulu’s extensive branch network to Muungano’s agri-focused innovations, these institutions are reshaping Kenya’s financial landscape. Despite challenges, their adoption of digital technologies and alignment with national development goals ensure a bright future. For more information on MFBs or to explore their services, visit the CBK website or contact the institutions directly.
