Project detail - Premier Credit Limited

Who is our customer

Premier Credit Kenya Limited is a non-deposit taking, credit only microfinance institution wholly owned by Platcorp Holdings Limited, a Microfinance Investment Management Company registered in Mauritius and with operating companies in Kenya, Uganda, Tanzania and South Africa. The group's mission is to provide affordable services to employed individuals, micro and small enterprises across Africa. Premier Credit Kenya has been operating since 2013 and currently has 90 branches across Kenya serving more than 250,000 clients with 433,030 loans with a focus on civil servants and micro and small enterprises.

What is our funding objective?

FMO's loan will be provided as a B-loan within a syndicated IFC facility allocated to multiple subsidiaries of Platcorp Holdings Limited. FMO’s participation will be dedicated specifically to Premier Credit Kenya with the funds to be used for on-lending to micro and small enterprises, supporting Premier Credit Kenya to further grow its MSME portfolio.

Why do we fund this investment?

The proposed facility provides an opportunity for FMO to support one of the top microfinance institutions in Kenya to increase its MSME lending activities with a particular focus on women-owned and agricultural MSMEs. As a non-deposit taking institution, FMO's long-term funding is also providing Premier Credit Kenya with stability and security of funding to enable it to further grow and expand its reach across Kenya.

What is the Environmental and Social categorization rationale?

Premier Credit Kenya is categorized as a low E&S risk (C) client based on FMO's policy with no IFC PS triggered transactions and in full compliance with FMO's exclusion list and national laws of Kenya. However, given the nature of the underlying portfolio and focus on individuals and micro entrepreneurs, the institution is considered a high risk for Client Protection Principles (CPPs). FMO's loan is provided alongside capacity development support to conduct an external assessment on CPPs and with a commitment from the client to comply with the CPPs and to address any gaps identified through the assessment. FMO analyses risks from different perspectives and assessments. In case of microfinance investments, the E&S classification is typically low because the exposure generally is limited to retail and micro-entrepreneurs. The risks that might come with microfinance investments, such as, among other, over-indebtedness, transparency of interest rates, responsible pricing, is covered by FMO in other assessments such as Client Protection Principles (CPPs). In case of high contextual risk, a human right assessment can be carried out.