Entry of three new players in the microfinance banking arena and aggressive competition from existing ones ate into
The Bank Supervision Report 2013 shows KWFT, the country's largest microfinance bank with Sh21.75 billion in net assets, clung to a market share of 53.19 per cent, contracting from 61.5 per cent in the previous year.
MFBs increased to nine in 2013 compared to six in the previous year.
"One microfinance bank was licensed during the year and had an asset base of Sh80 million as at
CBK measures market share based on a weighted composite index comprising assets, deposits, capital, deposit accounts and loan accounts. A microfinance bank is classified as large if market share is five per cent and above, medium if 1-5 per cent, and small if below one per cent.
The number of large microfinance banks rose to four last year as
Collectively, the four large MFBs control 95.44 per cent of the market with Sh40.36 billion in assets.
A sector analysis report released last year by
"However, market share concentrations of the three largest DTMs (now renamed as MFBs) only slightly fell from 100 per cent to 98.9 per cent in the last period of analysis," the report stated, referring to the 2009-2011 period.
Total assets for microfinance banks increased to Sh41.35 billion from Sh32.41 billion in 2012, a 27.6 per cent leap.
CBK said lending "remained the most critical activity" for MFBs, with net advances accounting for 66 per cent of their total assets compared to 48 per cent in 2012. MFBs advanced Sh27.48 billion to customers in the period from Sh19.91 billion in the previous year.
Customer deposits in the sector increased to Sh24.75 billion, making up 60 per cent of MFBs' total liabilities in the period, which means they relied more on deposits as funding sources than external borrowing, which declined to 22 per cent (Sh8.97 billion).
Most Popular Stories
- Bently Creates Alabama Small Business Commission
- California King Fire Roars Out of Control
- Mercedes Rolls Out S550 Plug-in Hybrid
- Is Alibaba's IPO Price a Fairytale?
- Kardashian: Kanye Never Told Fan in Wheelchair to Stand Up
- SBA Kicks off Hispanic Heritage Month
- CalPERS Pulls Out of Hedge Funds
- U.S. Tobacco Growers Lose Last of Price Supports
- Poverty Rate Drops for First Time Since 2006
- Two-thirds of Hispanics Doubt Media Accuracy