Faulu Bank has signed an agreement with the Council of Non-Governmental Organizations (NGOs) that will see the micro lender increase its deposits and unfunded income line.
The microfinance institution envisages a flow of funds through NGOs which increased by 8% in 2019 to reach Kshs. 165.97 billion.
Data indicates that 88% of these funds were raised from sources outside Kenya.
According to Faulu Bank CEO Apollo Njoroge, the lender is banking on long-term and sustainable strategies that will ensure the growth of its current and savings account (CASA) and its NFI line.
âSigning this Memorandum of Understanding today will provide us with an opportunity to support the board in capacity development and provide financial education to NGOs and community organizations (CBOs) while advancing our products and services across the board. NGO sector, âNjoroge said.
As part of the deal, the NGO Council engages members seeking access to tailored financial solutions from the lender among them, the Imani account, which is personalized for NGOs, community organizations and churches.
âAs a board, we have had discussions with the bank and, in the process, expressed our wish for it to play a central role in supporting and complementing the work that NGOs are undertaking in the country. We are confident that we are supporting Faulu in any way we can to ensure that they partner with as many NGOs to achieve their mandate of capacity building through financial education, âsaid Samuel Githinji, Chairman of the Council of NGO.
The Board reports that there are currently 11,262 registered NGOs in the country with various charitable purposes, while 8,893 are active.
During the 2017/2018 period, NGOs spent a total of Kshs. 172.1 billion Ksh with 78.8 billion Ksh injected into the implementation of projects across the country.
Through this partnership, Faulu Bank aims to open at least 100 NGO accounts, mobilize more than Kshs 150 million in deposits and earn more Kshs. 2 million foreign currency income