Choice Microfinance Bank

What Choice Microfinance Bank does

Choice Microfinance Bank is a CBK-regulated digital microfinance bank headquartered in Nairobi, Kenya, founded in 2019 and operating under the trade name Choice Bank. It serves three primary segments: SMEs and microbusinesses, individual consumers, and fintechs/digital platforms, with adjacent use cases for Kenya-China importers and green-energy adopters. The product portfolio spans secured lending (logbook loans up to Ksh 6M, asset finance up to Ksh 6M at 80% financing, title deed loans, fixed deposit-backed loans), unsecured credit (Choice Business Loan up to Ksh 1M, check-off loans), specialized financing (Solari solar loans at 2-3% p.m.), personal and business current accounts with multi-currency support (KES, USD, EUR, CNY), fixed deposits (3-12 month tenures, minimum Ksh 100,000), and a cross-border remittance product set including the CNY Express Kenya-China corridor supporting 50+ countries.

The platform is built on an API-first architecture with native integrations into M-Pesa, Airtel Money, Pesalink, and Paybill/Till rails, and is accessible via iOS and Android mobile apps and internet banking. Capabilities include embedded bank accounts, virtual wallets per user/merchant/project, instant payments (KES 100 to Ksh 6M), unlimited-recipient bulk transfers, and bank-grade encryption with multi-factor authentication and real-time fraud monitoring. The BaaS platform, launched in 2024, exposes these rails to external fintechs and SACCOs via sandbox-onboarding within 48 hours.

The business model combines interest income from the secured loan book with transaction-based revenue from instant payments, cross-border remittance FX margins, and BaaS partnership fees. Go-to-market is hybrid: product-led growth via self-serve mobile app and public website, sales-led loan officer consultation for credit products, and enterprise field sales for BaaS partnerships. Operations are concentrated in Kenya with a single Nairobi headquarters, and the company reports 10,000+ active business accounts (2024) and $1B+ in cumulative transactions processed (2023).

Name

Choice Microfinance Bank

Legal name

Choice Microfinance Bank

Website

https://choice-bank.com

Company type

Private

Founded year

2019

Operating status

Operating

Headcount range

11–50 employees

Short description

Choice Microfinance Bank is a CBK-regulated digital microfinance bank in Kenya offering secured lending, business and personal banking, cross-border remittance (including a Kenya-China CNY corridor), and a Banking-as-a-Service API platform to SMEs, individuals, and fintech developers.

Ownership category

akta.pro rank

Product category

Microfinance Banking

NAICS

Depository Credit Intermediation (5221), Commercial Banking (522110), Nondepository Credit Intermediation (5222), Sales Financing (52222), Savings Institutions and Other Depository Credit Intermediation (52218)

SIC

Functions Related To Depository Banking, Nec (6099), Personal Credit Institutions (6141)

akta.pro primary industry

Small Business Banking (Microbusiness/Sole Proprietor) (FSABAAAI)

akta.pro secondary industries

Digital Retail Banking (Online & Mobile) (FSABAAAF), Embedded Deposit Accounts & Digital Wallet Infrastructure (FSAGALAE), Microloans & Working Capital Loans (FSAKAGAA), SME Deposits & Business Accounts (Operating, Savings, CDs) (FSABABAC)

Keywords

• Microfinance banking
• SME lending
• Mobile banking
• Banking-as-a-service
• Cross-border remittance

Headquarters

HQ city

Nairobi

HQ country

Kenya

HQ region

Africa

Offices1 record

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Personnel, Technology or R&D, Operations, Infrastructure, Marketing or Sales

Revenue model

1. Loan Interest Income: Interest income from diversified loan portfolio including logbook loans (up to Ksh 5-6M, vehicle-secured), asset finance loans (up to 80% financing, 1.5% p.m.), business loans (up to Ksh 1M unsecured), check-off loans (salary-deducted), Solari solar loans (2-3% p.m.), fixed deposit-backed loans, and title deed loans. Primary revenue driver.
2. Remittance & FX Services: Fees and FX margins from cross-border money transfers including CNY Express Kenya-China corridor (50+ countries supported), supplier payments, diaspora remittances. Revenue from currency conversion spreads and transaction fees.
3. BaaS/API Banking Partnership Fees: Banking infrastructure fees from fintechs, SACCOs, marketplaces, and enterprises embedding Choice Bank's regulated banking rails. Scoped partnership model with likely setup, transaction, or licensing fees.
4. Fixed Deposit Interest Margins: Interest spread earned on fixed deposit placements (minimum Ksh 100,000 or USD 1,000) with tenures of 3, 6, 9, or 12 months. Deposits can be used as loan collateral.

Pricing tiers

Go-to-market motion3 records

Distribution channels5 records

Marketing channels5 records

Core offering

Choice Microfinance Bank is a CBK-regulated microfinance bank that provides secured and unsecured loans (logbook, asset finance, business, check-off, Solari solar, fixed deposit-backed, and title deed), personal and business deposit accounts with fixed deposits, cross-border remittance including the CNY Express Kenya-China corridor, and an API-driven Banking-as-a-Service platform that enables fintechs and digital businesses to embed regulated banking infrastructure. Distribution is digital-first through iOS/Android mobile apps and internet banking, complemented by loan-officer-assisted sales for credit products and enterprise partnership sales for BaaS.

Product overview

Choice Microfinance Bank is a CBK-regulated microfinance institution headquartered in Nairobi, Kenya, offering a comprehensive suite of financial products across consumer lending, business banking, and API-driven Banking-as-a-Service. The core product portfolio includes secured loans (Logbook Loans up to Ksh 6M, Asset Finance Loans up to Ksh 6M, Title Deed Loans), unsecured credit (Choice Business Loans up to Ksh 1M, Check-Off Loans), and specialized financing (Solari Loans for solar installations, Fixed Deposit Loans). The bank's digital banking services encompass Personal and Business accounts with fixed deposits, mobile/internet banking, and cross-border remittance capabilities including CNY Express for Kenya-China payments supporting 50+ countries. The API Banking/BaaS platform enables fintechs, lenders, SACCOs, and businesses to embed regulated banking infrastructure including embedded accounts, payments, collections, virtual wallets, and FX services. All products are supported by the bank's digital-first approach with mobile apps available on iOS and Android.

Differentiator

Problem solved

Functional benefit

Products and services

• Logbook Loan Vehicle-secured loan using the borrower's motor vehicle logbook as collateral, allowing access to financing up to Ksh 6M (60% of forced sale value) while retaining vehicle use. Includes Pesa Speedy, Wezesha, and Loan Buyoff sub-products. Targeted at individuals and SMEs needing secured credit.
• Asset Finance Loan Financing for purchasing vehicles and income-generating assets from yards, individual sellers, or companies, supporting fresh financing and hire purchase with up to 80% financing, interest from 1.5% p.m., up to Ksh 6M, and up to 24 months tenure. Includes MOTI-80 for newer vehicles and Auction Refinancing.
• Choice Business Loan Unsecured retail financing for Choice Bank account holders providing up to Ksh 1M net for business expansion, education, emergencies, vehicle purchases, or other financial goals, with tenure up to 12 months and assessment based on account history.
• Check-Off Loan Salary-deduction loan with repayments deducted directly from the borrower's salary, designed for personal needs, emergencies, or achieving financial goals with a simplified repayment structure.
• Solari Loan Green energy loan for complete solar solutions covering homes, schools, churches, hotels, restaurants, and SMEs. Packages from Ksh 150,000 to Ksh 10M (capped at Ksh 5M financing), interest 2-3% flat per month, minimum 40% deposit, terms up to 36 months.
• Fixed Deposit Loan Secured loan allowing customers to access financing using an active Choice Bank fixed deposit as collateral while maintaining the savings structure. Borrowing capacity ranges from 50% of FD value (3-month) to 90% (12-month), with interest rate 6% plus the FD rate.
• Title Deed Loan Property-secured loan using the borrower's title deed as collateral, enabling access to flexible financing for business growth, personal projects, or major investments while retaining property ownership.
• CNY Express Dedicated Kenya-China payment corridor for importers, traders, and businesses to pay suppliers in CNY/RMB directly from Kenya, with faster China-bound payments, traceable compliant transaction handling, and professional FX guidance.
• Remittance Services Cross-border payment services including CNY Express (Kenya-China corridor), supplier payments to China, competitive FX support, cross-border money transfers, and diaspora & investment support. Supports 50+ countries.
• API Banking / Banking-as-a-Service (BaaS) Banking-as-a-Service platform enabling fintechs, lenders, SACCOs, and businesses to embed banking infrastructure, including embedded accounts, payments/disbursements, collections, virtual wallets, cross-border/FX, and regulatory compliance, via API with sandbox access within 48 hours.
• Personal Account Everyday banking account for deposits, withdrawals, payments, and access to banking services, featuring low-cost transactions, multi-currency support (KES, USD, EUR, CNY), and access to mobile/internet banking.
• Fixed Deposit Savings product with fixed interest rates and agreed tenures of 3, 6, 9, or 12 months. Minimum placement from Ksh 100,000 or USD 1,000. Can serve as collateral for loans.
• Business Current Account Business banking account for SMEs, startups, and growing enterprises to manage collections, supplier payments, and daily operations while keeping business finances separate from personal funds.
• Business Fixed Deposits Business savings product with tenures of 3, 6, 9, or 12 months offering competitive fixed returns. Can be used as collateral for credit facilities and supports treasury planning.

Quantifiable outcome

• Loan disbursement in 6-12 hours for logbook loans
• +4 more outcomes

Segments5 records

Ideal customer profiles5 records

Technology focussed Yes

API detail

Has API

Yes

API docs

API detail

Core technology

AI maturity

App detail

Integration4 records

Feature6 records

Scale indicators7 records

Recent moves10 records

Expansion highlights5 records

Direct peers

• Family Bank Kenya: Mid-sized Kenyan commercial bank with strong SME and microfinance focus, digital banking (PesaPap), and consumer lending products. Closely comparable in size, customer segment focus, and digital-first orientation to ChoiceBank.
• Branch International: Mobile lending platform operating in Africa (including Kenya) offering instant digital loans to consumers and SMEs. Comparable as a digital-first credit provider competing for the same underbanked Kenyan customer base.
• Faulu Microfinance Bank: CBK-regulated microfinance bank in Kenya offering SME loans, savings, and digital banking to underserved customers. Closely comparable in regulatory tier, customer segments, and product mix to ChoiceBank.
• SMEP Microfinance Bank: Kenyan CBK-licensed microfinance bank focused on SME and microenterprise lending, deposits, and digital channels. Closely comparable as a similarly sized Kenyan microfinance bank with overlapping loan and deposit products.
• Tala (formerly Mkopo Rahisi): Mobile-first digital lender operating in Kenya with consumer and SME credit products. Comparable as a digital lending competitor targeting similar Kenyan customers, though operating under a non-bank lending model rather than a CBK microfinance bank license.

Emerging players

• Mono: African open banking and financial data API platform enabling account access and payment initiation. Comparable as an African API-based embedded finance infrastructure player, though Mono operates as a technology layer rather than a licensed bank like ChoiceBank's BaaS.

Broad incumbents

• Equity Bank (Kenya): One of Kenya's largest banks by customer base with a strong focus on financial inclusion, SMEs, and digital banking (Equitel, EazzyBanking app). Directly comparable as a Kenyan deposit-taking, SME-focused institution, though materially larger and broader than ChoiceBank.
• Co-operative Bank of Kenya: Major Kenyan bank offering personal, SME, and corporate banking plus digital channels (MCo-op Cash, mobile app). Comparable incumbent competitor in the same SME and consumer deposit/lending market as ChoiceBank.
• Safaricom (M-Pesa / M-Shwari): Operator of M-Pesa, Kenya's dominant mobile money platform, and M-Shwari (savings/credit via CBA). Directly comparable as a digital deposit-taking and micro-lending channel serving Kenyan consumers and SMEs, with far larger scale and rails than ChoiceBank.
• KCB Bank Kenya: Leading Kenyan commercial bank with extensive digital banking (Vooma, KCB App), SME lending products, and cross-border remittance. Comparable as a large incumbent offering the same SME and consumer banking services ChoiceBank targets, with a much larger branch and agent network.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks7 records

Key highlights7 records

Customer concentration

• TikToktiktok.com/@choicebankke
• Xx.com/choicemfbbank
• Facebookfacebook.com/ChoiceMicrofinaceBank
• LinkedInlinkedin.com/company/choice-microfinance-bank

Compliance1 record

Revenue estimate

Valuation estimate

Number of profiles

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Choice Microfinance Bank