Maisha Microfinance Bank now open for business in Kenya

In the ever-evolving financial landscape of Kenya, newly licensed micro-lender Maisha Microfinance Bank has made its grand entrance, aiming to provide financial services to a large percentage of Kenyans who have been excluded from the traditional banking sector. Despite challenges and a tough outlook for smaller lenders in the country, Maisha Microfinance Bank is optimistic about the opportunities that lie ahead. Ireneus Gichana, the Chief Executive Officer of Maisha Microfinance Bank, recently sat down with CNBC Africa to discuss the bank's mission and vision. Gichana highlighted the importance of timing, noting that while the banking sector in Kenya has faced turmoil, there is still a significant gap in financial inclusion that Maisha Microfinance Bank seeks to address. According to the Fin Access Household Survey conducted in 2016, 10 million Kenyans remain unbanked, representing a 17.4% gap in the market. This gap has narrowed from 25.4% in 2014, indicating progress but also underscoring the opportunity for new players like Maisha Microfinance Bank to make a difference. Gichana emphasized the bank's focus on balancing credit and savings services, a departure from the traditional credit-only approach in the microfinance sector. By introducing innovative banking solutions, Maisha Microfinance Bank aims to strengthen the savings culture and improve financial literacy among its clients. One of the standout features of Maisha Microfinance Bank is its foray into comprehensive insurance premium financing, a move that sets it apart from its competitors. While the insurance sector in Kenya currently has low penetration levels, Gichana believes that there is a significant need for products that can reach underserved markets. By offering insurance premium financing, Maisha Microfinance Bank hopes to promote financial inclusion and support customers who may struggle to afford insurance coverage. Gichana acknowledged that the insurance industry is dominated by established players, but he sees an opportunity for microfinance banks to collaborate with insurers and expand access to insurance products to a wider audience. By diversifying its offerings and embracing innovation, Maisha Microfinance Bank is positioning itself as a key player in the ever-expanding financial services sector of Kenya. As the bank continues to grow and evolve, its commitment to bridging the gap in financial inclusion and promoting sustainable banking practices will be instrumental in driving positive change in the industry.