Loan Originator

Tanir Credit & Accounting Services Limited (hereinafter referred to as Tanir) was founded in 2018 and is transitioning to a fully digital model. The company currently operates a hybrid model and is moving loan applications online via its website, with a native mobile app planned within 2–3 years. Tanir serves Kenya’s domestic market end‑to‑end, with borrower concentrations in Nairobi and Mombasa, and uses M-Pesa for loan disbursement and repayment. The company provides short-term credit (short-tenor) across two lines: B2C micro‑loans for individuals and B2B loans to micro and small enterprises, including a dedicated factoring product.

Origins and evolution

Tanir began with vehicle‑related lending (auto finance for transport operators). It then broadened into general short‑tenor lending to individuals and businesses, building underwriting and collections based on cash flow. As digital channels have matured, the company tested online applications via chatbots and automated tools while maintaining limited offline support for exceptional cases. Today Tanir is consolidating origination on its website—with a native mobile app to follow—to become fully online over the next 2–3 years. In parallel, the company expanded into SME credit, offering standard working‑capital loans (≈30–180 days) and factoring (≈104 days), both under enhanced due diligence (contract, invoice and counterparty verification). This digital shift enables better scalability, improved risk insights, and more efficient unit economics.

Factoring is short-term financing against verified invoices or contracts… repayment typically comes from the debtor once the invoice is settled. It bridges a supplier’s cash‑flow gap before the buyer pays; repayment is typically sourced from the debtor’s settlement of the invoice/contract. This setup helps mitigate credit risk compared to unsecured working capital loans and supports higher ticket sizes for reliable SMEs.

Products & Pricing

Tanir currently issues 85,000+ loans per year, serving both B2C and B2B customers through primarily digital channels (website today; mobile app to follow). In the consumer line, short‑tenor micro‑loans of 7–30 days are priced at an average rate of 0.76% per day (≈277% p.a., simple interest). Typical loan sizes range from KSh 3,000–60,000 (average €160), with an average term of ≈20 days and a ≈21% repeat rate (which is considered high for consumer micro‑loans) driven by progressive credit limits.

In the business (non‑factoring) line, working‑capital loans carry tenors of ≈30–180 days at ≈41% p.a., with typical tickets from KSh 300,000–2,000,000 (average €8,667) under manual underwriting. The SME factoring product finances verified invoices or contracts under enhanced due diligence (contract/invoice/counterparty checks), with a typical tenor of ≈104 days at ≈31% p.a. and ticket sizes of KSh 300,000–6,000,000 (average €30,406).

Over the past three quarters, the portfolio-weighted default rate is ≈9.3% (Individuals 13%, Business 2%, Factoring 1%), in line with the current portfolio mix (67.39% / 21.59% / 11.02% respectively). Disbursements and repayments are executed via M‑Pesa (with bank transfers supported), and underwriting uses CRB-integrated scoring and behavioral analytics.

License & Compliance

Tanir is licensed as a Digital Credit Provider (DCP) issued by the Central Bank of Kenya (CBK) — CBK/DCP/2024/82, dated 7 October 2024. The license is in good standing; the company pays all applicable licence and supervisory fees on time.

Historically, digital lending in Kenya operated for an extended period with limited direct regulation. After the CBK introduced the DCP licensing regime, all providers were required to apply for authorisation. During the transition, and while applications were under CBK review — a process that, for some firms, could extend up to about 2.5 years — compliant applicants were permitted to continue operating within Kenya pending a final decision. Tanir applied in due course and continued serving the domestic market until formal licence issuance.

Leadership & Organization

Tanir is fully owned by its founder and Chief Executive Officer, Leah Muthoni Nganga. This alignment of ownership and leadership supports long-term strategic decisions and capital discipline, including a conservative dividend and bonus policy focused on reinvestment. As CEO, Leah defines strategy, oversees the company’s credit policy and key partnerships, and leads engagement with investors and the Central Bank of Kenya.

The executive team also includes a Chief Financial Officer responsible for financial planning, treasury, taxation, audits, funding management, and unit economics, and a Chief Operating Officer who coordinates day‑to‑day operations across risk, scoring, collections, and customer support while designing and enforcing processes and SLAs. Core functions—Risk, Scoring, and Legal, Collections, Customer Support, IT & Development, and Marketing & Growth—are each led by a dedicated manager. This structure reduces key‑person dependence, strengthens governance, and enables scalable execution.

Loan Collateral

General overview of collateral

The €3,500,000 loan will be secured primarily by the company’s working assets, supplemented by fixed assets and personal guarantees. The collateral structure combines the active loan book, cash reserves, office equipment, and a pledged vehicle, providing a diversified base of both dynamic and tangible assets. In addition, cash flow control mechanisms will ensure transparent monitoring of loan disbursements and repayments.

Dynamic assets

• Loan book: €1,550,000 – representing the active portfolio of loans disbursed to clients, net of expected credit losses. The loan book is revolving and provides continuous cash inflows through scheduled repayments.

• Cash reserves: €304,000 – available liquidity held in company accounts, pledged as part of the collateral package.

Combined, these working assets total €1,854,000 and represent the core operating base of the business. They are monitored monthly to ensure portfolio quality and collateral adequacy.

Fixed assets

• Office equipment: €67,482 – including desks, chairs, computers, monitors, and kitchen equipment.

• Toyota Land Cruiser 300 3.5 AT (2023): €78,360 – pledged vehicle as collateral; director provides a separate personal guarantee.

Cash flow and reserve mechanisms

All loan disbursements and borrower repayments are processed through dedicated mobile money paybill and bank accounts. This ensures transparent tracking of daily inflows and provides the lender with clear visibility over cash generation. The loan book is expected to revolve multiple times during the facility’s term, generating sufficient liquidity to service interest and principal. Additionally, the company will accumulate repayment reserves ahead of tranche maturities, creating an extra liquidity buffer for bullet settlements.

Collateral summary