The African Guarantee Fund (AGF) has signed a KSh 725 million risk sharing partnership agreement with the Kenya Women Microfinance Bank PLC (KWFT) in a move to boost financial inclusion for Women-led or owned Small and Medium Enterprises (WSMEs) in Kenya.
- The partnership will unlock up to KES 3 billion in financing for over 1000 SMEs in Kenya.
- The loan portfolio guarantee will also support expansion of KWFT’s green initiatives that address climate change and contribute to job creation and sustainability.
- The partnership is backed by the African Development Bank’s Affirmative Finance Action for Women in Africa (AFAWA) initiative.
“We are confident that through this partnership, we will strengthen our operations and better serve our clientele, thereby contributing to women economic empowerment,” said Kariuki Kitabu, KWFT MD.
The risk sharing mechanism will enable KWFT to increase its on-lending activities to WSMEs with a view of promoting enterprise growth in the Kenya. AGF will additionally provide capacity development assistance to increase KWFT’s ability to recruit and appraise WSMEs, enhance its automation, train staff, as well as implement growth strategies.
“One of our goals for this partnership is to prioritize capacity building that equips women entrepreneurs with the essential skills and knowledge needed to build sustainable businesses and access market opportunities that will drive Africa’s economic growth and development,” said AGF Group CEO, Jules Ngankam.
“Our partnership with KWFT will support women SMEs by not only unlocking financing but also providing technical assistance which are both two key pillars of the AFAWA program,” added Jules.
With a financing gap of over USD 49 billion impacting women SMEs in Africa, the partnership will address barriers such as limited access to information, collateral requirements, cultural biases, complex business processes, and the disproportionate impact of climate change on WSMEs.
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