Banks, telcos, digital creditors scramble for struggling micro lenders’ customers

The MFBs have also become targets for acquisition by commercial banks. PHOTO | SHUTTERSTOCK
 

Kenya’s microfinance banks (MFBs) are facing uncertain growth prospects as banks, telecommunications companies and the digital credit providers scramble for a piece of the low-end market with similar financial products and services.

The institutions’ thinning revenues and weakening balance sheets have opened up the sub-sector to stiff competition and even acquisition by commercial banks.