Companies

Jijenge Credit inks deal to give civil servants loans

JIJENGE

Jijenge Credit chief executive Peter Macharia. PHOTO | DENNIS ONSONGO | NMG

lynetigadwah_img

Summary

  • Civil servants can now take up commercial loans from micro lender Jijenge Credit following a deal with the Ministry of Public Service and Gender.
  • The company has received approval for rollout of a digital interface check-off system targeting government employees for loan offers against their pay slips.
  • The micro lender said it targets to loan out up to Sh200 million to the government employees drawn from various ministries and parastatals in the first six months.

Civil servants can now take up commercial loans from micro lender Jijenge Credit following a deal with the Ministry of Public Service and Gender.

The company has received approval for rollout of a digital interface check-off system targeting government employees for loan offers against their pay slips.

“Authority is hereby granted for your company to use check-off number…for commercial loans in the government payroll,” said Wangari Ndia, the Principal Secretary at the Ministry of Public Service and Gender in a letter to Jijenge.

The micro lender said it targets to loan out up to Sh200 million to the government employees drawn from various ministries and parastatals in the first six months.

Jijenge chief executive Peter Macharia said the move is driven by the steady rise in demand for loans since the easing of movement restrictions in July in the wake of the covid-19 pandemic.

He noted that businesses and individuals hit by the pandemic took up loans to boost their operations even as the lender restructured 80 percent of its loan repayment plans.

“Civil servants can now borrow through us and that one will be done digitally with no paperwork,” he said in an interview.

The firm whose core business is motor vehicle and asset financing has grappled with declining collections and increased demand for working capital from borrowers.

Movement restrictions imposed in March, resulted to low cash inflows compelling restructuring of its loan repayment plans to ease the pressure off the customers.