US financier sets aside Sh671m for small Kenyan lenders

Low-capitalised Kenyan lenders could soon access Sh671 million from US-based firm, Lendable Inc.

Lendable says the funds were sourced from KawiSafi Ventures, Omidyar Network, Fenway Summer Ventures and a number of prominent fintech angel investors from the United States including Larry Rosenberger.

Lendable founder and chief executive Daniel Goldfarb said Kenya’s small and medium enterprises engaged in lending now have access to funds they could use to expand their operations and roll out new products to meet their members’ needs.

“Over the last year we have shown we can raise commercial capital for alternative lenders, deliver commercial returns to US investors and help our alternative lending partners grow exponentially,” said Mr Goldfarb.

Lendable recently arranged Sh55 million for solar kit reseller Raj Ushangaa House and Sh155 million for Mombasa-based lender, Watu Credit that finances acquisition of motorcycle taxis (boda bodas) for its members.

The US firm uses its online platform, Maestro, to assess alternative lenders’ financials, customer collections and customer payment histories.

Lendable also announced the launch of its technology-enabled platform where local lenders can access loans in weeks and in ‘off-balance sheet’, a term used to mean flexible loans whose repayment could be deferred in case of an unexpected future event or can be converted into equity.

The firm’s Nairobi office is set to be upgraded to a regional hub.

The company also plans to open offices in Tanzania and Rwanda, with a third investment location currently being sought within East Africa.