|
|
Kenya: Faulu Kenya's Profit Hits Sh103 Million
 |
 |
|||||||||
|
||||||||||
|
|
|||||||||
|
||||||||||
The Nation (Nairobi)
3 May 2008
Posted to the web 2 May 2008
Justus Ondari
Nairobi
Faulu Kenya Limited has recorded a 38.4 per cent growth in pre-tax profit from Sh74.9 million posted in 2006 to Sh103.7 million up to December 31, 2007.
The profit was largely driven by interest income, which increased from Sh288.3 million in 2006 to Sh408.2 million in 2007. The micro-finance institution has, at the same time, expressed interest in selling part of its equity to potential investors in future.
"It is too early to comment but the process has begun earnestly. We are willing to divest by selling part of the equity to a group of like-minded people," Mr Ken Wathome, the institution's board chairman, said during an investors briefing held a Nairobi hotel, on Friday.
Faulu also announced that it will soon start taking deposits. This revelation comes hot on the heels of its intentions of being regulated by the Central Bank of Kenya under the Micro-finance Act 2006, a move that Ms Lydia Koros, its managing director, said would transform it into a deposit taking MFI.
"This will give us a CBK license to mobilise deposits and provide credit to our clients," Ms Koros said adding that the institution's first banking hall in Mombasa is almost complete.
In readiness for its new status, a new organisational structure is being prepared while a core banking system known as E-merge T24, whose implementation will be complete by August 2008, is being installed by Temenos Limited.
The transformation plans, however, put a dent into the institution's earnings as administration and operating expenses increased from Sh217.2 million in 2006 to Sh352.4 million in 2007.
Faulu Kenya, which targets 1 million clients by 2011, advanced Sh2.8 billion as loans to its client base which increased from 68,434 in 2006 to 90,339 in 2007. This represented a 75 per cent growth.
|
During the period, the institution made a Sh64.5 million provision in respect to the post-election violence. "The micro-finance industry was hardest hit by the violence with about 10,000 of our clients affected directly and indirectly," said Ms Koros.
| |||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
| Copyright © 2008 The Nation. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections -- or for permission to republish or make other authorized use of this material, click here. | |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
| Make allAfrica.com your home page | RSS Feed | |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
| Top | Site Guide | Who We Are | Advertising | Search | Subscribe | |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
| Questions or Comments? Contact us. Read our Privacy Statement. | |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
