The Central Bank of Kenya (CBK) has approved Choice Microfinance Bank to transition from a community microfinance bank to a nationwide microfinance bank.
- The approval grants the bank authority to operate and carry out microfinance banking business across the country – widening its footprint to a larger customer base.
- Choice Microfinance joins the 11 nationwide microfinance banks with 2 still holding community microfinance bank licenses.
- Currently, the CBK has 14 licensed microfinance banks, which are divided into nationwide microfinance banks and community-based or regional microfinance banks.
“The Central Bank of Kenya on 4th November 2024, approved the application by Choice Microfinance Bank Limited to convert from a community microfinance bank to a nationwide microfinance bank,” CBK noted in a gazette notice.
Nationwide microfinance banks are permitted to operate or establish branches anywhere in the country, while community-based microfinance banks are licensed to operate within a given geographical area or district in the rural areas.
“Therefore permitting the institution to carry out microfinance banking business throughout Kenya,” CBK added.
Choice Bank was licensed in May 2015, to operate community microfinance banking business in Kajiado County, mainly targeting Kenyans in the diaspora. In 2021, Wakanda Network Limited, a UK based firm, acquired 85% stake in Choice bank.
Choice Microfinance made KSh 8 million in profits after tax in 2023, having 8,990 total deposit accounts – with only 19 accounts holding above KSh 500,000 in deposits.
Other licensed microfinance banks include Faulu, Kenya Women, Rafiki, SMEP, Branch, Caritas, Sumac, Salaam, Umba, U&I, Muungano and ON IT.
