Caritas Microfinance Bank eyes Kes21.4billion asset base by 2030 in new strategic plan

Caritas Microfinance Bank is seeking to grow its current asset base to Kes 21.4 billion in the next five years as part of its multi-year strategic plan for 2026-2030, which the lender said will focus on expanding market share and product offerings while leveraging internal resources and optimizing investment returns.

Speaking during the bank’s Annual General Meeting (AGM) on Thursday, the bank’s Chief Executive Officer (CEO) David Mukaru, said the bold move is part of a long-term expansion approach meant to bolster last year’s impressive performance that saw the lender’s total asset base grow by 30.7% year-over-year to KShs 6.415 billion, driven by strong loan book expansions and increased customer deposits.

“Our third Strategic Plan (2026–2030) marks a historic turning point for Caritas Microfinance Bank. SP3 is an aggressive, tech-driven roadmap designed to scale our impact exponentially—anchored by our target of a KES 21.4 billion asset base, over 300,000 accounts, and a near-total 98% digital adoption model by 2030,” Mukaru said, in an event that also coincided with the launches of the strategic plan and a host of product offerings.

The bank’s total revenue rose 22.4% to KShs 949 million in the financial year ending December 31, lifting profit before tax to KShs 74.3 million on loan book and deposit growth as net advances grew 27.3% to KShs 3.857 billion, while customer deposits surged 29.4% to KShs 5.357 billion.

The microlender, which typically lends small loans, savings accounts, and insurance to low-income individuals, entrepreneurs, and small businesses who are ordinarily excluded by traditional banks, further said that it was embarking on an aggressive portfolio restructuring and loan clean-up in an effort to balance its books.

“It is a challenge affecting the entire financial sector, largely due to the economic pressures facing households and MSMEs. But we believe that sustainable lending goes beyond disbursing credit—it involves ensuring that customers borrow responsibly and have the capacity to repay,” said Mukaru.

Adding that, the bank’s focus will be to build financially resilient customers while maintaining a healthy loan portfolio.

“By combining responsible lending, financial education, and proactive portfolio monitoring, we are addressing the challenge in a sustainable manner that protects both our customers and the institution,” he said.

Industry realignments 

Driven by the Central Bank of Kenya (CBK) requirement to raise the minimum core capital to KSh 5 billion by the end of 2026, Kenyan banks are aggressively pivoting toward asset and scale expansion.

Banks are also pursuing this through regional expansion, capital injections, and deeper SME and MSME lending to remain competitive.

Accounting for over 98% of all businesses in the country, Kenya’s Micro, Small, and Medium Enterprise (MSME) sector contributes 33% to 40% of the national GDP, and employs nearly 15 million people, or 80% of the country’s workforce.

But because these enterprises operate informally, navigating funding continues to be an uphill task, and they often rely on a mix of several primary funding sources, including digital lenders who are known to extend exorbitantly for their loans.

“The growth of digital lenders reflects the increasing demand for convenient and accessible financial services, and we welcome innovations that promote financial inclusion. While speed is important, we believe access to credit should be accompanied by responsibility and a genuine commitment to improving customers’ lives,” he argued.

New product offerings 

During the event, the bank unveiled a partnership with Airtel Money, allowing customers to transfer funds and conduct transactions between their Airtel Money wallets and Caritas Microfinance Bank accounts.

In addition, it introduced a solidarity group loan product aimed at empowering youth and women entrepreneurs through financial literacy and entrepreneurship training, with group members acting as collateral for one another.

‎The initiatives form part of the bank’s strategy to expand financial inclusion and provide innovative solutions to underserved communities across the country.

The deposit-taking microfinance lender was founded by the Catholic Archdiocese of Nairobi in 2025 and remains the most profitable large-tier MFB in Kenya.