KWFT inks Sh725m deal to expand lending to women-owned businesses
KWFT and the African Guarantee Fund have signed a Sh725 million risk-sharing partnership agreement to expand lending to women-led or women-owned small and medium enterprises in Kenya.
The Kenya Women Microfinance Bank Plc (KWFT) and the African Guarantee Fund have signed a Sh725 million risk-sharing partnership agreement to expand lending to women-led or women-owned small and medium enterprises in Kenya.
The partnership is aimed at addressing the significant financing gap faced by women entrepreneurs, empowering them economically, creating jobs, and contributing to the development of the region.
Under the deal, up to Sh3 billion in financing will be unlocked for more than 1,000 women SMEs in the country as the African Guarantee Fund (AGF) stands ready to absorb part of the potential losses from defaults in exchange for a fee from the bank.
Kariuki Kitabu, managing director of KWFT, noted that the collaboration marks a significant milestone in empowering women entrepreneurs and increasing financial inclusion in Kenya.
" The risk-sharing mechanism will enable KWFT to increase its on-lending activities to [women-owned] SMEs with a view to promoting enterprise growth in Kenya. This loan portfolio guarantee will also support the expansion of KWFT’s green initiatives that address climate change and contribute to job creation and sustainability, with a focus on driving sustainable economic growth," said Mr Kariuki.
Jules Ngankam, AGF Group chief executive officer stated that the partnership will prioritise capacity building that will equip women entrepreneurs with the essential skills and knowledge needed to build sustainable businesses and access market opportunities.
