4G Capital distributes Ksh.4 billion to SMEs

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4 G Capital
PHOTO/COURTESY: 4G Capital

In an effort to promote financial inclusion in the country, microfinance venture 4G Capital disbursed loans worth Ksh. 4.3 billion (US$ 41.69 million)  to Small and Medium Enterprises (SMEs) over the past year, the firm has revealed.

According to 4G Capital’s co-founder and CEO Wayne Hennessy-Barrett- in a news report by the Business Daily- increased demand for 4G Capital’s services in the period positively affected the firm’s lending capacity and capabilities. 

“This last year has been remarkable, high demand for our services saw a 111 percent year on year (Quarter three 2018 to Quarter three 2019) increase in the total capital deployed through our loans, that’s double what we’ve lent since we started,” Mr. Wayne Hennessy-Barrett, told the Business Daily in an interview.

“Eighty percent of our customers take out repeat loans. We believe this is due to our ability to focus on their unique needs and provide the right solution,” Mr. Wayne Hennessy-Barrett added.

The Business Daily similarly reports that 4G Capital combines customer oversight and training with unsecured SME financing to mitigate the occurrence of Non-Performing Loans (NPLs). The firm’s average loan repayment rate currently stands at 94 percent. By the end of 2014, the firm’s first full year in operations, 4G Capital had lent about Sh455.8 million ($4.3 million) to SMEs. As of now, 4G Capital has disbursed loans worth Ksh4.3 billion between the third quarter of 2019 and the third quarter of 2018 underscoring the firm’s growing loan book.

“By year end we expect to lend over Ksh. 4.7 billion (US$46 million) to our Kenyan customers with the average loan size being Ksh. 11,935 (US$ 115),” Mr Hennessy-Barrett said in the Business Daily report.

Ever since the introduction of the interest rate cap in 2016, SMEs have been securing loans  from firms such as 4G Capital in an effort to offset the credit crunch brought about by the enactment of the banking law.

ALSO READ: Isuzu, NIC strike SMEs financing deal

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