Date: 30 April 2024

Watu Credit Achieves Client Protection Certification Milestone

Watu Credit Achieves Client Protection Certification Milestone

A significant milestone for Watu Credit is that the financial institution obtained Client Protection Certification from MFR for its operations in Kenya and Uganda. This certification, awarded after a thorough assessment process, validates Watu’s adherence to Client Protection Principles, including fair treatment, prevention of over-indebtedness, transparency, and responsible pricing.

The certification process, which began in 2021 with the Social Rating assessment, involved a comprehensive review of Watu’s policies, procedures, and practices related to client protection. MFR conducted interviews with staff and clients, awarding Watu Kenya and Watu Uganda with Bronze-level certification in February 2024.

This achievement is significant, as it places Watu among a select group of financial institutions in Africa that have attained Client Protection Certification. The certification underscores Watu’s commitment to conducting its business in a manner that does not harm its clients, particularly vulnerable and less financially literate individuals.

Watu Credit’s success in achieving Client Protection Certification is attributed to the support of its clients, partners, and the dedicated Watu Credit team. Moving forward, Watu aims to achieve Gold-level certification for client protection in all its subsidiaries, further solidifying its commitment to protecting clients and ensuring fair treatment across all its operations.

In Uganda, multiple branches have initiated training sessions on riders’ safety for clients. This collaborative effort between Verdant Capital Hybrid Fund and Watu Uganda signals the launch of a technical assistance project aimed at enhancing safety measures for riders.

Watu Credit Uganda is one of Verdant Capital Hybrid Fund’s portfolio companies. Verdant Capital Hybrid Fund, which is nearing its target final closing, is aimed at driving impactful development in Africa through SMEs and micro-entrepreneurship, which stimulates job creation and income generation across the continent. The fund deploys hybrid capital and subordinated debt instruments to support inclusive financial institutions, with a strategic focus on specialist banks, microfinance institutions, leasing and factoring companies, fintech firms, and other non-bank financial entities. Key to the fund’s investment strategy is adherence to high environmental and social standards. The fund’s pan-African approach underscores its commitment to fostering sustainable economic growth and social progress across diverse African markets.

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