Centum Investment PLC's loan arm, Jafari Credit, increased digital lending to civil servants by 10.1 percent to Sh413 million in the year to March 2026 as it deepened focus on lending to borrowers deemed less risky.

Disclosures show Jafari Credit’s disbursements to civil servants rose from Sh375 million in the previous year and Sh267 million in the year ended March 2024, taking the cumulative lending since launch in 2022 to Sh1.4 billion.

Jafari Credit CEO Edwin Munyiri attributed the growth to a strategy that combines disciplined lending with technology-driven efficiency.

“Maintaining a Non-Performing Loan (NPL) rate of five percent while growing our loan book shows that it is possible to scale sustainably without compromising credit quality,” Mr Munyiri said, adding that demand for affordable and accessible credit among salaried workers continues to rise.

Jafari says it is targeting more aggressive expansion in the segment, with plans to deploy up to Sh800 million in civil servant loans in the year to March 2027. The lender is also exploring additional business-to-business products as it seeks to diversify its offerings in the evolving credit market.

The rise in lending to public sector workers, including teachers, police officers and doctors, to meet emergency needs reflects increasing focus on building a high-quality loan book pegged on predictable incomes.

The lender said the growth has been driven by its continued emphasis on acquiring customers with stable income streams, particularly government staff whose salaries are considered less volatile compared to informal sector earnings.

Jafari Credit, a subsidiary of Centum Investment, has positioned itself as a fast-growing digital lender targeting salaried workers, with more than 17,000 civil servants having tapped the digital loans that start from Sh5,000.

The lender said it has maintained an NPL ratio of about five percent, pointing to the impact of targeting workers associated with relatively stable incomes.

Jafari Credit has also ramped up the use of AI in its operations, integrating the technology into credit appraisal and customer engagement to improve efficiency. Its AI-powered platform, Rafiki AI, has served more than 1,500 customers.

"AI adoption has helped drive effectiveness and efficiency, creating a scalable operating model where we can continue growing the business without increasing costs at the same pace or allowing credit quality to deteriorate," said Mr Munyiri.

The company’s growth has been boosted by its licensing as a digital credit provider by the Central Bank of Kenya in a move that aligned its operations with regulatory requirements on transparency and consumer protection.

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