Faulu Bank: Banking On Women To Succeed

by Business Watch Team

Faulu Bank’s journey to growth and success is deeply rooted in its commitment to women’s financial inclusion. Founded in 1991 with humble beginnings, the bank embarked on a mission to provide small loans of as little as KSh500 to women residing in Nairobi’s Kawangware and Mathare slums. This visionary initiative marked the inception of Faulu Bank’s focus on empowering women economically.

Initially, the bank conducted a pilot project that disbursed $8,000 in loans to individual women. The overwhelming success of this endeavor paved the way for the establishment of Faulu Bank as a microfinance institution, with a primary emphasis on extending financial support to women’s groups. The rapid uptake of loans and an impressive repayment rate of nearly 98% underscored the reliability of women as clientele, corroborating findings from research indicating that female microcredit borrowers exhibit superior repayment records compared to their male counterparts1.

Building upon this foundation of trust and reliability, and largely driven by its women-first strategy Faulu Bank achieved a significant milestone in 2008 by becoming the first microfinance institution to obtain a deposit-taking license from the Central Bank of Kenya. This pivotal moment not only validated the bank’s operational integrity but also signaled its emergence as a formidable player in Kenya’s financial landscape.

Since then, Faulu Bank has continued to ascend, propelled by its commitment to supporting the inclusion of women through a diverse range of tailored financial products. Today, the bank proudly serves over 108,000 women customers, offering a comprehensive suite of products designed to address their unique needs and aspirations. Among the flagship products offered by Faulu Bank to empower women are:

  1. Business Loans: Faulu Bank’s Biashara SME Loan product is tailored to fuel entrepreneurship and small business ventures, enabling women to expand their enterprises and achieve sustainable growth.
  2. Emergency support: Various personal credit solutions are available to finance school fees, hospital bills, and other urgent payments.
  3. Insurance Solutions: Faulu Bank offers comprehensive insurance packages tailored to mitigate risks and safeguard the financial well-being of women and their families against unforeseen circumstances.
  4. Investment Opportunities: Faulu Bank has investment products to help women build wealth and secure their financial futures.

Related Content: Faulu Bank Partners With Irri-Hub To Empower Smallholder Farmers

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