In an effort to expand its local footprint, SME focused lender Faulu Microfinance Bank is set to unveil eight new branches in different parts of the country which will take the financier’s total number of outlets in the country to 23.
The branches will be located in Ugunja, Kapenguria, Homabay, Kericho, Busia, Voi, Bondo and Limuru and they will cost a total Ksh. 113 million in investment to set up.
According to the Business Daily, expanding into these new locations presents the SME bank with an opportunity to forge stronger relations with the people in the areas while also augmenting Faulu bank’s relationship with county governments in charge of the localities.
“Such partnerships facilitate scalable business models while leveraging economies of scale in our operations.” Faulu Bank’s Managing Director Apollo Njoroge is quoted as saying by the Business Daily.
Apart from expanding into new territories, the bank is set to upgrade its current fifteen branches. Similarly, Faulu Bank will also renovate its marketing offices in Taveta, Emali, Iten and Kimilili into fully fledged sales and service centers in a bid to expand its product portfolio.
Faulu Bank, which was recently feted as the leading microfinance bank of 2019, has however had its share of negative publicity in recent months. In July, the Competition Authority of Kenya (CAK) issued the lender with a Ksh. 150,000 fine for making distorted representations on loans issued to its customers. The competition watchdog fined Faulu Bank alongside Harambee Sacco.
“In the case of Faulu Microfinance, the penalty was 10 percent of the complainant’s loan value of Sh1.5 million,” CAK told Business Daily in an earlier statement.
In August, three of the bank’s employees were charged in court for irregularly selling a commercial building owned by a city trader. The case, which is still ongoing, saw the three employees indicted for colluding to auction the building in Huruma Estate on dates between May 30, 2015 and March 28, 2019.
ALSO READ: KCB eyes regional expansion