Mwananchi Credit Adds Trade Finance To Its Portfolio

Mwananchi Credit Limited is adding a series of trading-related products to its portfolio. The trade finance products include cashless bid bonds, performance bonds, advance payment guarantees and letters of credit.

Currently, the micro-finance company mainly deals in logbook loans and car financing and has grown its customer base to become one of the leading providers in the market under these categories.

Speaking during the product rollout meeting, the company’s CEO Dennis Mombo said many Kenyans are excluded from the lucrative government and parastatal tenders due to tough conditions set to qualify. Some of the financial institutions, for example, insist on 100% cash cover for them to guarantee bid bonds or performance guarantees.

Meanwhile, when traders seek to import high-value machinery and other stock, they are forced to pre-pay to the seller when a letter of credit would have given them more time to cushion their liquidity. “Mwananchi Credit seeks to make these services available easily to the common person as it seeks to live up to its billing as the true mwananchi-centred credit company,” Mr Mombo says.