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African Guarantee Fund and Kenya Women Microfinance Bank Ink Deal to Strengthen Women's Access to Finance

Source: The Star

African Guarantee Fund (AGF) has signed a Sh725 million ($5.37 million) risk-sharing partnership agreement with the Kenya Women Microfinance Bank  (KWFT). The move aims to boost financial inclusion for women-led or owned small and medium enterprises (WSMEs) in Kenya. The partnership will unlock up to Sh3 billion (over $22 million) in financing for over 1000 women-led SMEs in Kenya, addressing the significant financing gap faced by women entrepreneurs. 

Kariuki Kitabu, KWFT MD, expressed his enthusiasm about the partnership, stating: "This collaboration with AGF marks a significant milestone in our journey towards empowering women entrepreneurs and enhancing financial inclusion in Kenya. We are confident that through this partnership, we will strengthen our operations and better serve our clientele, thereby contributing to women's economic empowerment." 

The risk-sharing mechanism will enable KWFT to increase its on-lending activities to WSMEs to promote 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 inclusion and economic growth.