Equity Bank | MFIs in Kenya

Data provided through Equity Bank

Gross Loan Portfolio USD, 2011: 1.3 billion

Number of active borrowers 2011: 630,088

Average loan balance per borrower USD, 2011: 2,032.2

Deposits USD, 2011: 1.5 billion

Assets USD, 2011: 2.1 billion

Number of depositors 2011: 5.7 million

Mission:

We offer inclusive, customer-focused financial services that socially and economically empower our clients and other stakeholders.

Background and Main Challenges:

Equity Bank is a relatively young, dynamic and fast growing indigenous microfinance institution. Our main challenges are management of growth, institutional capacity building, and capital needs to support outreach.

Address:

P.O. Box 75104-00200

Nairobi

Kenya

Phone:

+254 20 27 366 20

Fax:

+254 20 27 372 76

Email:

ebs [at] ebsafrica [dot] co [dot] ke

Website:

www.equitybank.co.ke

Main Funding Sources:

Savings

Shareholder Capital

Products and Services:

Loans

Voluntary Savings

Fund Transfer Services

Products:

Loan, voluntary savings, fund transfer services, training and consulting.

Looking for (Investment Types):

Donations

Capacity Building Grants

% Operations Comprised by MF:

91 - 100

Date established:

Jan 1 1984

FYE:

31-Dec

Current Legal Status:

Bank

Regulated:

yes

Social Performance Profile


+ Mission specifics
+ Target markets (ranked by importance)
+ Development goals (ranked by importance)
+ Poverty targets
+ Governance
+ Range of products and services
+ Financial products and services offered
+ Credit products offered
Microcredit loans for microenterprises	1
Microcredit for household needs/consumption	1
Loans for agriculture	1
Loans for education	1
Housing loans	1
Other credit products offered:	1
Int ps offerothercreditloanstext c	Corporate loans
+ Savings products offered
Voluntary savings accounts
Compulsory savings accounts (cash collateral)
Fixed term deposits
Business current accounts
+ Compulsory insurance products required
+ Voluntary insurance products offered
+ Other financial products and services offered
Remittances services	1
Microleasing	1
Custodial services, investment banking
+ Non-financial services offered
+ Enterprise services offered
Enterprise skills development	1
Business development services	1
+ Education services offered
+ Health services offered
+ Women's empowerment services offered
Leadership training for women	1
+ Products and services targeting the poor
+ Social responsibility to clients
+ Client protection principles in use
The loan approval process requires evaluation of borrower repayment capacity and loan affordability. Loan approval does not rely solely on guarantees (whether peer guarantees, co-signers or collateral) as a substitute for good capacity analysis.
Productivity targets and incentive systems value portfolio quality at least as highly as other factors, such as disbursement or customer growth. Growth is rewarded only if portfolio quality is high.
Prices, terms and conditions of all financial products are fully disclosed to the customer prior to sale, including interest charges, insurance premiums, minimum balances, all fees, penalties, linked products, third party fees, and whether these can change over time.
Staff is trained to communicate effectively with all customers, ensuring that they understand the product, the terms of the contract, their rights and obligations. Communications techniques address literacy limitations (e.g. reading contracts out loud, materials in local languages).
Acceptable and unacceptable debt collection practices are clearly spelled out in a code of ethics, book of staff rules or debt collection manual.
The organization's corporate culture values and rewards high standards of ethical behavior and customer service.
A mechanism to handle customer complaints is in place, has dedicated staff resources, and is actively used. (Suggestion boxes alone are generally not considered adequate.)
Customers know how their information will be used. Staff explains how data will be used and seeks permission for use.
+ Cost of services to clients
+ Social responsibility to staff
+ Human resources
Protection at work (safety, anti-harassment)
Equality (anti-discrimination, equal pay for men and women with equivalent skill levels)
+ Basis of staff incentives related to social performance
Ability to attract new clients from target market
Outreach to remote/rural communities
Quality of interaction with clients based on client feedback mechanisms
Quality of social data collected
Client retention/drop-out rate
Portfolio quality
+ Social responsibility to the environment
This institution raises clients' awareness about environmental impacts
This institution trains/educates clients regarding environmental improvements
This institution includes specific clauses in its loan contracts to mitigate specific environmental risks
+ Poverty measurement tools in use