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Faulu joins others in opening grassroots banking agencies

Faulu  Micro Finance Bank has launched banking agencies in rural areas targeting to recruit members from the agricultural sector by bringing services closer to them.

The financial institution Managing Director,  Apollo Njoroge has said the institution will partner with county governments in realizing the programme.

Njoroge said this move will help their customers access various services at their rural towns without traveling for long  distances.

Speaking in Murang’a on Wednesday while launching the banking platform, the MD noted that Faulu has continued to generate huge profits, despite competition from other established commercial banks.

Currently, the bank has more than 400 banking agencies in the country and due to high demand they are geared to open more  agencies especially in rural areas.

“Some of our customers are at rural areas and we are also targeting farmers and that’s why we are opening many banking agencies at rural towns and trading centres,” Njoroge added.

The  MD observed  that the institution has established various products, including loans and affordable mortgages for construction of low cost houses to help the government in realization of  big four agenda.

“Billions of shillings have been disbursed as loans to enable Kenyans engage in housing, health, agriculture and
infrastructure to fast track development,” he said.

The MD further challenged county governments not to delay in paying contractors as some of them source for money from financial institutions.

“Delaying payments for contractors assigned work by county governments is like slowing development as the affected financial institutions will not give the contractors more funds if the earlier loans are not settled,” he added.

Speaking during the same occasion, Murang’a Deputy Governor, Maina Kamau praised Faulu for choosing to offer financial support to farmers.

Kamau said the bank’s branch in Murang’a has helped many people particularly farmers in accessing credit facilities to boost their farming.

He regretted that Kenyans had in the past lost millions of shillings, after some of other financial institutions collapsed.

“People  invest in financial institutions once they are assured that their savings are properly secured,” said the deputy governor. He challenged other commercial banks to consider establishing branches in agricultural rich areas, which register high financial transactions.

“Kangari  is one of the areas in Murang’a that registers exchange of millions of shillings on daily basis due coffee, tea and milk production,” said Kamau.

He  added that dairy farmers need to be supported to produce enough milk to sustain Murang’a Cooperative Creameries (MCC) that requires 250,000 litres daily.

“The dairy plant is a big investment that should be supported by all to ensure its success,” said Kamau.

By  Bernard  Munyao

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