KWFT, the Kenya Women Microfinance Bank PLC, recently inked a significant partnership aimed at enhancing financial support for Women’s Small and Medium Enterprises (WSMEs) in Kenya. On May 6, 2024, in Nairobi, the African Guarantee Fund (AGF) finalized a Sh725 million risk-sharing pact with KWFT.
This collaborative effort is poised to bolster financial inclusion for women-led businesses, particularly WSMEs, by unlocking access to substantial funding.
Through this groundbreaking agreement, KWFT and AGF aim to bridge the financing gap that has long hindered the growth and prosperity of women entrepreneurs in Kenya. The infusion of Sh725 million in risk-sharing capital is expected to catalyze up to Sh3 billion in financing, empowering over 1,000 women-owned or led SMEs across the country. Such an initiative holds immense promise in addressing the pressing financial challenges faced by women in business.
The timing of this partnership is particularly crucial, considering the prevailing economic landscape in Africa, where women SMEs encounter a staggering financing gap exceeding $49 billion. By leveraging the support of the AfDB’s Affirmative Finance Action for Women in Africa (AFAWA) initiative, the AGF-backed collaboration with KWFT underscores a concerted effort to drive sustainable economic development by empowering women entrepreneurs.
This strategic alliance signifies a significant milestone in the journey towards gender equality and economic empowerment in Kenya. By fostering an enabling environment for WSMEs to thrive, the partnership between KWFT and AGF not only unlocks vital financial resources but also fosters innovation, job creation, and inclusive growth, ultimately contributing to the broader socio-economic advancement of the nation.
