FAULU KENYA

Faulu Kenya is a Deposit Taking Micro-Finance Company, registered in Kenya under the Micro-Finance Act which is regulated by the Central Bank of Kenya. Faulu was founded as a programme of Food for the Hungry International (FHI), a Christian relief and development organisation based in Phoenix Arizona in USA and has grown to become an MFI that offers both savings and credit services to millions of Kenyans.

FHI recognised that there were unique needs of low-income people in rural and urban areas and that sustainable economic development for the marginalised poor is a priority issue in the developing world. To address these issues, FHI established Faulu Africa Network, a regional micro finance network operating in Kenya, Uganda and Tanzania.

FHI began with a pilot phase of micro enterprise lending in the Mathare slums east of Nairobi in 1992. As the methodologies and systems were defined, it formally became the Faulu Loan Scheme in 1992. Thereafter, in 1993, a commitment was made to expand the programme and major funding availed. Finally in October 1994, Faulu Kenya officially came into being and was registered as a limited liability company in 1999.

Valuable support was received in the formative years from USAID, DFID and the European Union. Faulu Kenya is currently a sustainable and profitable micro finance institution.

Faulu Kenya has grown tremendously over the last 16 years, with over 90 outlets throughout Kenya. These outlets are currently serving over 250,000 clients. There are now more than 1500 members of staff in the outlets and at the Business Support Center (Head Office).
PRODUCTS.

CREDIT PRODUCTS:
Mkopo Biashara
This is a business loan available to people involved in business. It has three levels designed to help you from small beginnings to a bigger operation. You are given a grace period before starting repayment.

Mkopo Biashara – Daraja 1
Terms
‘ Waiting period for first loan eligibility for group members ‘ 4 weeks.
‘ One should have attended Loan Orientation Seminar if it is a first loan.
‘ Saving of the required loan security fund to secure the loan required.
‘ Group members and Faulu officers business appraisal.
‘ Group members’ guarantee for the customer’s loan for group based loans.
Benefits
‘ Easy access requirements.
‘ Flexible repayment period.
‘ Quick processing.
‘ Convenient and affordable.
‘ Access to refinancing.
‘ Weekly reports on loan status.
Mkopo Biashara – Daraja 2

Terms
‘ Waiting period for first loan eligibility for group members ‘ 4 weeks.
‘ One should have attended Loan orientation seminar.
‘ Saving of the required loan security fund to secure the loan required.
‘ Group members and Faulu officers business appraisal.
‘ Group members’ guarantee for the customer’s loan for group based loans.

Benefits
‘ Easy access requirements.
‘ Flexible repayment period.
‘ Quick processing.
‘ Convenient and affordable.
‘ Access to refinancing.
‘ Weekly reports on loan status.
Mkopo Biashara – Daraja 3

Terms
‘ One must have serviced a Daraja 2 loan successfully to qualify.
‘ Group members and Faulu officers business appraisal.
‘ Group members’ guarantee for the customer’s loan for group based loans.
Benefits
‘ Easy access requirements.
‘ Flexible repayment period.
‘ Quick processing.
‘ Convenient and affordable.
‘ Access to refinancing.
‘ Weekly reports on loan status.

Mkopo Hisa

Purpose
‘ Faulu Kenya has seen the need among it’s clientele to diversify their investments in channels that also diversify their risks. Hence, Faulu has identified one such area that clients can easily access, The Nairobi Stock Exchange. This loan product allows Faulu Kenya clients to buy shares of listed companies as a way of investing their monies for both short and long-term returns.
‘ This product’s objective is to encourage savings for capital accumulation and getting for clients an alternative income stream.
Terms
‘ Waiting period for first loan eligibility for group members ‘ 4 weeks.
‘ One should have attended Loan orientation seminar if it is a first loan.
‘ Saving of the required loan security fund to secure the loan required.
‘ Group members and Faulu officers’ business appraisal.
‘ Group members’ guarantee for the customer’s loan for group based loans.

Benefits
‘ An avenue for one to acquire savings for capital accumulation and an alternative income stream.
‘ Convenient weekly installments.
‘ Interest waiver reward for early repayments.
‘ Convenient and easy access requirements.

Mkopo Elimu

Purpose
‘ An educational loan product that allows one to meet their children’s school fees or their own if they want to pursue further education or training and also purchase books, uniforms etc.
‘ This facility is available to both Faulu and non-Faulu clients.
‘ Faulu clients can access the loan even if they have another loan that they are servicing as long as they fulfill the required terms.

Terms
‘ Waiting period for first loan eligibility for group members ‘ 4 weeks.
‘ One should have attended Loan orientation seminar if it is a first loan.
‘ Saving of the required loan security fund to secure the loan required.
‘ Group members and Faulu officers business appraisal.
‘ Group members’ guarantee for the customer’s loan for group based loans.

Benefits
‘ Meets a variety of educational financial needs over and above fees such as books, uniforms etc.
‘ Convenient and flexible disbursement with cheques written directly to institutions.
‘ Interest waiver reward for early payments.

Mkopo Kilimo

Purpose
‘ A loan product that involves Faulu financing on-farm activities for farmers at their level.
‘ The farmers will be able to apply for loans, then repay with the proceeds from their produce at harvest.

Terms
‘ Waiting period for first loan eligibility for group members ‘ 4 weeks.
‘ One should have attended Loan orientation seminar if it is a first loan.
‘ Saving of the required loan security fund to secure the loan required.
‘ Group members and Faulu officer’s business appraisal.
‘ Group members’ guarantee for the customer’s loans for group based loans.

Benefits
‘ Convenient- you get it when you need it and repayment is based on your harvest cash flows.
‘ Timely and reliable- season-based disbursements for early preparation and purchase of inputs.
‘ Flexibility on repayment terms – has an optional grace period for ease of payments on the clients.
‘ Interest waiver incentive on early repayments. Customer reward- Customers enjoy interest reduction on subsequent loans.
‘ It has a refinancing option through a top-up facility for one to take advantage of emerging opportunities.