- Micro finance in Kenya consists of micro finance facilities and regulations in Kenya which has been developing since the mid 1990s. Legislation was passed in 2006 with the Micro Finance Act which became active in 2008.
- By 2010 there were 24 large micro finance institutions in Kenya, which provided US$1.5 billion to approximately 1.5 million active borrowers. With over 100,000clients,
- Equity Bank had the largest share of business loans representing market share of 73.50% followed by Kenya Women Micro finance Bank with12.06%. Most micro finance firms as in other countries have eligibility criteria which may include gender(as in the case for special women’s loans),age(at least 18 years of age), a valid Kenyan ID,a business, an ability to repay the loan and be a customer of the institution.
- There are existing niche micro-finance players such as PrivateEquity, Speed Capital and SMEP which is a Christian centered micro-finance institution.
Existing Regulations
- The banking system in Kenya is regulated by the Companies Act, the Banking Act ,and the Central Bank of Kenya Act. In addition ,there are several existing guidelines.The responsibility for monetary policy and the banking system is held by the Central Bank of Kenya, which also releases information about interest rates,banking guidelines,and the financial institutions.
The Kenyan Micro Finance Act was adopted in 2006 and became active in 2008. With the adoption of this act,institutions could apply for micro-finance licenses at the Kenyan Central Bank either as a national or community institution
