Microfinance in Kenya has really played a vital role in lending money to small businesses that lack the finance to grow and thrive well.
This has been of big help to the Kenyan economy as well as the Kenyan citizens at large due to the improved living standards that it has created.
Besides, unemployment rate has really fluctuated due to the big help offered by microfinance in Kenya.
Maybe you have been wondering how to start a microfinance bank in Kenya. Well I will show you the tips that will help you become successful in this money lending business in Kenya.
Let us get started on how to start a microfinance in Kenya:
Step 1:Have a strategic microfinance plan that will be your road map in the management and allocation of resources.
Step 2: Formation of a legal entity that will protect you from suffering personally in case of theft or any other scandals.
Step 3: Registration with the Kenya Revenue Authority for taxation purposes.
Step 4: Have a bank business account and credit cards to prevent mixing personal accounts with business accounts which may later lead to complications in case the company is sued.
Step 5: Have an ideal accounting systems that will help you have financial records that will be used as reference in the future.
Step 6: Acquire business insurance that will cater for all the risks involving your business.
Step 7: Market your microfinance business to make your brand well known to customers.
This is the procedure that will help you in starting your microfinance.
Requirements To Register Microfinance
You may also want to know how to register a non deposit taking Microfinance in Kenya which is always as simple as abc.
There are licensing requirements for the Microfinance institutions which include:
1. Name approval.
2. Application for the Microfinance license.
3. Letter of intent.
4. Submission of the application and the correspondence.
Registered Microfinance in Kenya have followed the regulations of microfinance institutions in Kenya making them well recognized businesses in the country.
List Of A Non Deposit Taking Microfinance Institutions In Kenya
a. Ngao Credit Limited.
b. Mwanainchi Credit Limited.
c. Platinum Credit Limited.
d. Jijenge Credit Limited.
e. Momentum Credit Limited.
To summarize, microfinance is of bug help to the society at large.Besides,it is a profitable organization that is worth investing in.