Kray Microfinance is revolutionizing access to credit for last-mile Ugandans through its innovative digital loan services. Featured on Day 13 of the #40Days40FinTechs initiative Season 5, Kray Microfinance addresses a critical barrier to the growth of micro, small, and medium-sized enterprises (MSMEs) in Uganda: the lack of affordable and accessible credit.
Many MSMEs in Uganda struggle to find financing options, often resorting to loan sharks who impose exorbitant interest rates. This financial strain stifles growth and limits opportunities for entrepreneurs. However, technological advancements in financial services are paving the way for more inclusive solutions.
Kray Microfinance, a digital financial services provider, has transitioned from a traditional money-lending company to a full-fledged digital microfinance institution. Their services are designed specifically for the unserved and underserved populations.
Raymond Peter Kiwanuka, the founder and managing director of Kray Microfinance, explains the process: “We are a digital microfinance. We have a mobile APP and also accessible via USSD. Accessing our credit is straightforward. You sign up and send a request for a loan. Our officers then reach out and an assessment is done after which, our officers do a direct engagement with the customer. After this engagement, a credit score is done and a loan limit is set, after which a loan is disbursed and a customer can access the money via our digital platform.”
Kray Microfinance offers various loan products tailored to the needs of different business models. “We have salary advance loans and repayment is monthly. We have traders that earn daily, and many of these prefer a daily repayment basis. We also have those who prefer weekly payments,” Kiwanuka adds.
Since its inception, Kray Microfinance has made a significant impact, providing loans to over 70,000 individuals and currently serving more than 18,000 active customers. The company has disbursed over UGX 21 billion, demonstrating its commitment to empowering local entrepreneurs.
Kray Microfinance operates under the regulations of the Uganda Microfinance Regulatory Authority and holds a license from the Ministry of Trade as a Savings and Credit Cooperative.
Kiwanuka emphasizes the importance of collaboration: “Minus our internal technical team, we also work with third-party operators like Yo Uganda who are our aggregators. We are also working with Interswitch to roll out ATM cards to further serve our customers better. We also actively work with the MNOs – MTN MoMo and Airtel Money.”
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