HUSTLE MAG MARCH 2020 FINAL

MAIN STORY
MICROFINANCE
Jawabu Biashara: Unlocking Success
Jawabu Biashara’s innovative lending model is giving a lifeline to micro, small and medium
businesses
By Amos Wachira
While Kenya has one of the
most developed financial
sectors in East Africa,
local startups struggle
to get affordable credit.
For a long time, the micro and small
enterprises segment has been ignored by
most mainstream financial institutions. A
2018 International Finance Corporation
report revealed that there are at least 44
million formal Micro, Small and Medium
Enterprises (SMEs) in Sub Saharan
Africa. 51 per cent of these need more
finance than they can access to grow their
businesses. Jawabu Biashara, a credit
only microfinance was launched in 2018
to serve the financial needs of micro and
small enterprises. The micro lender’s key
objective is to provide financial products
tailored to meet the needs of this market
segment. “Kenyans are known to be very
enterprising. We work with entrepreneurs
to enable them to scale their businesses,”
says Mr. Samuel Gaita, the Chief Executive
of Jawabu Biashara.
He says that their flagship product is a
business loan that was warmly received in
the market.
Their business loans are tailored to
improve the working capital of small
enterprises to enable them to grow. To do
this, says the CEO, the company assesses
the business needs of entrepreneurs and
their ability to repay the loans.
Since its launch, the new kid on the
block has managed to grow its customer
base as well as its range of products.
“We launched our services in April
2018 with a single branch. Since then, we
have gradually built our branch network
to three,” says Charles Njoroge, the
founder and Managing Director of Jawabu
Biashara. With its head office in Muthaiga,
and branches in Ngara and Githurai, the
company is serving the larger Nairobi region
including market centers in Githurai,
Ruiru, Kahawa West and Thika.
Others are Wakulima, Gikomba, Jogoo
road and City park markets.
The firm has also diversified its product
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HUSTLE EAST AFRICA
Mr. Charles Njoroge (left), Managing Director, Jawabu Biashara shares a moment
with Jawabu Biashara CEO Mr. Samuel Gaita.
offering, providing a full suite of business
loans that include Express and logbook
loans.
Another area of focus is the housing industry.
Jawabu Biashara launched a housing
loan targeting landlords and housing
agents who wish to renovate or refurbish
their property to boost their revenue.
Mr. Gaita says the product aligns with
one of the government’s big four agenda;
housing.
With over 13 deposit taking microfinance
banks and many credit only microfinance
institutions, Kenya’s microfinance
industry is one of the most competitive
in the region. As such, micro lenders that
embrace innovation tend to stand out.
Jawabu Biashara is one of these. From
the outset, the company anchored all its
products and services on technology.
“We have realized that technology is
indispensable and most Kenyans have
embraced it,” says the company’s CEO.
The company has optimized its information
technology system to lower operation
costs while improving efficiency.
“For us, the customer is king, that’s
why we build our products around their
needs,” says Mr. Gaita.
The micro lender’s Jawabu Chapchap
mobile application can be accessed from
any place at any time.
The app also integrates with mobile
money services like M-Pesa for the convenience
of the customer.
“The app is self managed. It scores
customers in real time. Once the loan requests
are approved, money is disbursed
through the mobile phone,” Mr. Gaita
explains.
Using the App, customers can also
repay their loans at the tap of a button.
Other than launching technology-based
products and services, Jawabu Biashara’s
innovative lending model also gives it a
competitive edge.
While most micro lenders use the group
lending model, Jawabu Biashara takes the
personal approach. This is then bolstered
by a team of business relationship officers