Home
Credit firms use social link to help poor access loans
Women and small entrepreneurs like Cecilia Mucheru are some of the targets of the scheme. Photo/FREDRICK ONYANGO
Posted Tuesday, November 17 2009 at 00:00
Other MFIs are expected to follow soon but the stringent requirements by CBK, designed to protect depositors’ cash, have proved hard to meet.
Minimum capital requirements for MFIs taking deposits come in two tiers: Sh20 million for those operating regionally (in districts or provinces) and Sh60 million for national presence.
According to a directive issued last year by the Central Bank , non-deposit taking institutions are required to open joint accounts with their clients at institutions licensed to take deposits.
The MFIs are instructed not to intermediate or borrow against such funds.
Analysts question the purpose of the accounts if the MFIs cannot use them to recoup part of their money after proving that a client has defaulted after receiving a loan.
Attempts by Business Daily to get a comment from the regulator, CBK, proved unsuccessful.
.
RSS