Kenya Women's Microfinance Bank (KWFT) and African Guarantee Fund have signed a risk-sharing partnership agreement worth Sh725 million to expand lending to women-led or owned SMEs in Kenya.
The partnership aims to address the large financing gap faced by women entrepreneurs, empower them economically, create job opportunities, and contribute to the development of the region.
Under the deal, up to Sh3 billion of financing will be provided to over 1,000 SMEs in the country, with the African Guarantee Fund (AGF) remaining willing to absorb part of the potential losses arising from default in exchange for a fee from the bank.
Kariuki Kitapo, Managing Director of KWFT, noted that the collaboration represents an important milestone in empowering women entrepreneurs and increasing financial inclusion in Kenya.
“The risk-sharing mechanism will enable KWFT to increase its lending activities to SMEs (women-owned) with the aim of 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,” Mr. Kariuki said. “With a focus on driving sustainable economic growth.”
Jules Ngankam, CEO of AGF Group, said that the partnership will prioritize capacity building that will equip women entrepreneurs with the essential skills and knowledge needed to build sustainable businesses and access market opportunities.