With firm roots in Africa, lender curves a niche by serving individuals unable to access mainstream banking
Letshego Holdings Limited (Letshego) was incorporated in 1998. It is headquartered in Gaborone and has been publicly listed on the Botswana Stock Exchange since 2002. Through its eleven country presence across Southern, East and West Africa (Botswana, Ghana, Kenya, Lesotho, Mozambique, Namibia, Nigeria, Rwanda, Swaziland, Tanzania and Uganda), its subsidiaries provide simple, appropriate and accessible consumer, microfinance and savings solutions to underserved communities, or individuals who struggle to access traditional banking services.
Letshego Kenya Limited, formerly Micro Africa Limited (acquired by the Letshego Group in 2012), is the largest credit only microfinance institution in Kenya. Letshego Kenya commenced operations in 2000, providing credit services to small and micro-entrepreneurs, salaried employees and civil servants. The company currently supports over 20,000 customers with a wide range of innovative and reliable financial solutions to the urban, peri-urban and rural Kenyan population.
Letshego Kenya strives to increase access to simple and appropriate financial solutions to underserved members of our local community. The term underserved stand for individuals who may or may not have a bank account, but find it challenging to access broader traditional banking services. The lender offers the following solutions:
These are structured solutions to enable customers to provide financial support to consumers who may find it challenging to access traditional housing finance or home loans. Letshego’s housing solution includes partnerships with construction suppliers. Customers can therefore access building materials for putting up residences or buildings on an incremental basis. These structures may be used as residences. By the same token, some customers use the buildings to generate additional income by renting them.
Letshego’s agriculture solutions focus on providing small scale farmers with inputs to increase the quality of agricultural outputs and harvest volumes to achieve expanded income for sustainable growth.
Education eco-system solutions
Letshego’s customized education eco-system solution for schools aims to support multiple stakeholders within a school environment. This maybe the school itself, teachers and parents. It also provides fundamental financial skills training for learners.
Letshego has tailored financial solutions for individual entrepreneurs who require working capital to boost stock and future sales potential.
Salary check-off solutions
These solutions are designed for employees of government entities and quasi government institutions as well as selected private institutions.
Insurance agency services
Letshego Kenya offers insurance solutions as an added value to protect its customers from loss of earnings in the event of unforeseen circumstances such as critical illness, permanent disabilities, loss of life and destruction as well as loss of property.
Letshego Kenya stands out because of its unique value proposition. To start with, It has embraced a business model through which it offers simple, appropriate and accessible financial solutions. Secondly, it takes pride as a Pan African company with tailor made solutions for Africa’s excluded or underserved populace that are appropriate and inclusive in an ethical manner. Its approach is reaching out to the excluded and underserved in the financial sector. Moreover, it offers incremental financing through the unique inclusive housing solutions.
The lender serves an increasing variety of financial needs to three key customer segments: micro and small entrepreneurs (MSEs), public and private sector emerging and middle income earners and individuals in the informal market. The customers get in touch with Letshego through its branch networks, relationship officers, direct sales agents, contact centre and website. It is looking forward to introducing mobile money solutions in Kenya in due course.
Partnership with AMFI-K
Letshego Kenya is a member of the Association of Microfinance Institutions in Kenya (AMFI-Kenya). The partnership has given the lender an opportunity to share industry knowledge with the other micro-finance players who are members of AMFI-Kenya and also promote a conducive environment on critical issues like price setting, interest rates, among other areas. The players in the microfinance sector understand each other’s values and jointly adapt to changing market conditions.
The road ahead for Letshego
Letshego Kenya strives to be an employer and financial partner of choice in the Kenyan market, expanding access to simple, appropriate and sustainable financial solutions.
In line with its brand promise, Letshego aims to improve the lives of its existing and new customers together with their respective families. In addition, it aims at encouraging and enabling more Kenyans to access capital for productive purposes that include growing business, providing education, building homes or acquiring assets. Ultimately, Letshego Kenya will deliver on its ambition to play a meaningful role in supporting local economic development, by enabling more Kenyans to become self-sustainable and active contributors to the growth of their local communities and economies.