February, 19, 2010

The Central Bank of Kenya has expressed concern over the slow pace with which local microfinance institutions (MFI) are applying for licenses to become deposit-taking organisations.CBK Governor Prof Njuguna Ndung'u said on Friday that the MFIs had not taken advantage of this avenue through which that can increase access to financial services in the country and cultivate a savings culture among Kenyans.“We are concerned about the slow uptake of this platform for MFIs to be mainstreamed into the financial sector,” he complained.

Currently, only Faulu Kenya has a deposit-taking license while Kenya Women Finance Trust has been granted an approval subject to meeting some conditions.“KWFT will be granted a license once a few pre-licensing requirement are fulfilled,” the Governor said while adding that eight other license applications were being reviewed.He said the Central Bank was willing to listen and address the problems that could be hindering these firms from reaching millions of Kenyans who are financially excluded.

.

.