Nairobi, May 5 -- Kenya's microfinance banks (MFBs) are facing uncertain growth prospects as banks, telecommunications companies and the digital credit providers scramble for a piece of the low-end market with similar financial products and services.

The institutions' thinning revenues and weakening balance sheets have opened up the sub-sector to stiff competition and even acquisition by commercial banks.

The Central Bank of Kenya says that the MFBs' slow growth has raised viability concerns, as new players such as digital lenders target the same customer base.

"Slow growth in loans and profitability raises viability issues of MFBs, with new players targeting the low end of the market, especially digital credit providers, as well as fu...