Banking BasicsFaulu
Microfinance Bank Limited is a Kenyan-based commercial microfinance bank that provides financial services to low-income people, small and micro businesses, and informal economies. The bank is privately held, not state-owned or joint-venture, and its business model combines business sustainability and social impact objectives. Faulu's vision is to empower Kenyan society to create wealth through financial inclusion.
Name & BackgroundFull
name of the bank: Faulu Microfinance Bank Limited
Founded: 1991
Head office address: Ngong Lane, Off Ngong Road, Nairobi, Kenya
Shareholder structure: Controlled by Old Mutual Group, part of Old Mutual East Africa Holdings, a private private private company. This shareholder background provides Faulu with strong capital backing and regional operational capabilities.
Scope of
ServicesFaulu has more than 50 branches in Kenya and provides financial services through approximately 600 agency service providers. Due to its small number of physical outlets, the ATM network relies heavily on third-party partner banks such as Kenya Commercial Bank. Faulu relies heavily on correspondent banking channels and mobile financial platforms, especially for clients in rural and remote areas.
Regulatory & Compliance
Regulator: Faulu is regulated by the Central Bank of Kenya.
Regulatory basis: Microfinance Act (2006)
license type: Deposit-taking Microfinance Bank License
Deposit Insurance: Joined the Kenya Deposit Insurance Corporation (KDIC) to provide protection of up to KES 100,000 (Kenyan shillings) per depositorRegulatory
record: Faulu has not had any major compliance breaches in recent years, has maintained a good regulatory rating, and has demonstrated a sound risk control and internal governance mechanism
Financial Health
Capital Adequacy Ratio: Maintained between 12% and 15% as required by the regulators, reflecting a strong capital buffer.
Non-performing loan ratio: about 8% to 10%, slightly higher than traditional banks, but controlled within the normal range of the industry.
Liquidity Coverage Ratio: It can cover short-term liquidity needs, maintain more than 35%, and have a stable liquidity strategy.
Overall, Faulu's financial structure is sound, but it still needs to strengthen its credit prudential assessment in terms of high-risk loan exposure.
Deposits & LoansDeposit
Products:
current account has no minimum balance limit, interest rate is close to zero, suitable for daily money managementFixed
deposit term of 1 to 12 months, interest rate range from 3% to 7%
Junior Account for minors, no management
feeGroup Savings Account for community organizations and group customersLoan
products:
Agricultural Loans are available for farmers with flexible repayment
cyclesSME Loans up to KES 5,000,000 for inventory, equipment or working capital
Do not focus on home or car loans, but accept specific customized applicationsList
Micro Loans range from KES 5,000 to KES 500,000 with an annual interest rate of 18% to 24%
common feesAccount
management fee: KES 50 will be charged if the balance is less than KES 1,000 Monthly management feeDomestic
transfer fee: 20 to KES 50 per KES transfer fee via M-Pesa:
1% to 2% of the transfer amount depending on the
partner channelATM Inter-bank withdrawal fee: KES 30 to KES 50
per transaction Other fees: 1% to 3% processing fee for loan products, account dormancy fee is about KES 100 Digital
service experience
mobile banking App per year: Faulu DigiBank, Google Play rating of 4.0, support account inquiry, transfer, bill payment, loan application
Online banking platform: functional foundation, suitable for general account management needsCore
functions: with face recognition login, loan status viewing, bill payment
technical capabilities: AI credit scoring system, USSD access, has achieved integration with M-Pesa and other platforms, has not yet opened Open API
customer service quality
service channel: provides round-the-clock telephone customer service, the average response time of the hotline is 2 to 5 minutes
Social media: Facebook and X platforms respond quickly, usually within 1 hour
feedbackOnline support: chatbots and email customer service
in the websiteComplaint handling: the average processing time is 3 to 5 working days, customer satisfaction is higher than 85%Multi-language
support: English, Kiswahili are available, and some outlets support local dialectSecurity
measuresFunds
security: deposit acceptance KDIC coverage, with real-time transaction monitoring, abnormal behavior detection mechanismData
security: ISO 27001 information security certification, customer data is encrypted and stored, and the mobile application adopts a two-factor authentication login mechanism, so there has been no major data breach so far.
Featured Services & Differentiation
Junior AccountDesigned for children, motivating savings
educationWomen's Savings Plan provides low-interest loans and financial literacy training for female customers
Green financial products: for environmental protection projects such as solar energy and energy-saving stoves, providing micro-loan support
SME customers can enjoy customized financing solutions, with a starting amount of KES 1,000,000
Market Position and HonorFaulu
is Kenya Deposit-Taking One of the largest members of Microfinance Bank's licensees
has won awards such as the Best Microfinance Institution in Kenya (2020) and the Most Impactful Social Finance Institution (2022), highlighting its position as a benchmark in the field of social finance.
