Murang’a construction-for-rental income firm Akuria Investments has received approval to launch a wholly-owned deposit-taking subsidiary, Muungano Micro-Finance Bank (MMFB).
In a special Kenya Gazette notice, Central Bank of Kenya (CBK) Governor Patrick Njoroge said Muungano is now be free to carry out banking business effective October 30.
The development is a culmination of a 49-year journey started by Muhika Kageni and late stockbroker Mwangi Thuo who marshalled finances and recruited members to the newly formed outfit Akuria a Kangari Investments.
The funds raised were used to buy prime parcels of land in Nairobi, Juja and Murang’a.
Owners of Muungano community microfinance are Akuria Investment Plc (20 percent) and the rest — 80 percent — is held by individual Akuria shareholders.
The company’s chairman, Patrick Karanja, said in a statement that the 300 individual shareholders had raised the initial Sh900 million seed capital.
Among rental properties owned by Akuria includes Muhika Kageni, Ngara Heights and Rhapta Terraces in Nairobi and the 20,000-square feet, Eastend Mall in Kangari all worth Sh800 million.
Muungano, a community microfinance bank that mainly targets farmers, intends to set up its head office at Eastend Mall with Lydia Kibaara as CEO.
“MMFB will offer the people of Kangari, Murang’a and Kenya savings and credit products that enhance financial prosperity, improve standards of living and quality of life,” said Mr Karanja in the statement sent to Business Daily.
Currently, Kenya has 12 microfinance institutions which had Sh41 billion in customer deposits by December 2018, being a 5.3 percent rise from Sh38.9 billion reported in 2017.