Corporate News
Jamii Bora Bank chief executive Samuel Kimani (left) with Postbank
acting managing director Anne Karanja during the signing of an agency
banking agreement on July 22, 2014. Photo/Diana Ngila
By MUGAMBI MUTEGI
Jamii Bora Bank is seeking to grow its loan book by lending cash to Kenya Power customers for connection to the national electricity grid.
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The bank will pay for power applicants through the Stima
Bora facility and recover the money with an annual interest payment of
16 per cent over a maximum period of five years.
Kenya Power had 2.33 million customers as of June
2013, representing a 14.7 per cent increase from the 2.03 million
recorded during a similar period the previous year.
The power distributor says this growth could have been higher with lower connectivity costs.
“The greatest hindrance with new power connections
is that you must have the cash in hand in order for us to connect you,”
said Ben Chumo, the energy firm’s managing director Wednesday during
signing of the partnership.
“This is the barrier that we are removing for the new customers who may not have the money.”
New power customers pay Sh35,000 to get a
connection if they are close to a transformer but this cost can increase
to even over Sh100,000.
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