Biz Lounge: An empire born from desire to help small businesses access credit

James Ndegwa, the founder of Fortress Lenders Limited, has a clear mission and that is to ensure that all 'risky' entrepreneurs have access to credit to grow their businesses.

Born and raised in Bangladesh Estates in Nakuru, Ndegwa learned the art of business from his father who was industrious. It was this close proximity to his dad that made him certain he would pursue entrepreneurship. 

His passion for financial matters emerged during his time at university.

"In my third year, I presented the idea of having an application to help students access loans. Although it wasn't taken up by the financial institutions, it led me to develop a platform connecting lenders with borrowers," Ndegwa recalls.

Through this platform, Ndegwa helped up to 50,000 clients access their desired loan products.

He noticed a trend where Medium and Small Enterprises (MSEs) like vegetable vendors, blacksmiths, cobblers, and chips sellers struggled to access loans.

After completing university, he worked on various projects but ultimately decided to start Fortress Lenders Limited, driven by a study on the challenges MSEs faced in accessing credit.

In 2018, Ndegwa started the lending business in Gilgil with an initial capital of Sh. 700,000. 

"I began with three employees and only 30 clients in the first month, which grew exponentially to 400 clients in one year," he explains.

Ndegwa highlights that most MSEs face liquidity challenges and lack access to affordable credit. 

"For an MSE, Sh5,000 or Sh10,000 can restock a business and keep it afloat," he says.

At 35, Ndegwa has opened seven more branches in three counties, growing his team to 23 employees. He aims to expand the company into a deposit-taking microfinance institution. 

His motivation comes from success stories like that of Peter, a blacksmith who started with a Sh. 5,000 loan and now employs six people and has a loan limit of Sh. 70,000.

Ndegwa acknowledges the high-risk nature of his business, especially with the rising demand and limited finances. 

"Many people are sceptical about investing in such a business due to the risks involved, but we've maintained a 97 percent collection rate," he notes.

In his downtime, Ndegwa enjoys playing golf and going on safaris, which helps him reflect and appreciate his achievements and future goals. 

"These activities also provide networking opportunities with like-minded individuals, aiding my business growth and attracting investors," he notes. 

He advises young entrepreneurs to build sustainable businesses that should be centred around creating solutions.