Thursday, February 13, 2025
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Equity Bank and IFC Unveil Ksh2.7B Deal Targeting 14 Counties

Equity Bank Kenya, in collaboration with the World Bank’s private sector lending arm, International Finance Corporation (IFC), has launched a $20 million (Ksh 2.7 billion) Risk Sharing Facility (RSF) aimed at promoting financial inclusion in underserved regions, particularly among refugees and host communities.

The program, unveiled in Kakuma, Turkana County will be implemented in 14 marginalized counties across Kenya, among them Turkana and Garissa which host Kakuma and Dadaab refugee camps.

“The program will initially cover 14 counties with 28 branches, providing access to financial services for marginalized communities,” read the statement in parts.

“Non-financial services, such as financial literacy training and agribusiness capacity building, will also be offered through a partnership with the Equity Group Foundation.”

Equity Bank Group Managing Director and CEO Dr James Mwangi Speaking during the Q3 Investor Briefing1.
Equity Bank Group Managing Director and CEO Dr James Mwangi Speaking during the Q3 Investor Briefing1. PHOTO/ Equity Bank Kenya

RSF to Boost Financial Inclusion for Individuals and Small Businesses 

According to the lender, this is the first global risk-sharing facility dedicated to financial inclusion for refugees and their host communities.

The program aims to support refugees and their host communities in achieving socio-economic empowerment, ultimately leading to self-reliance.


Also Read: Equity Group CEO James Mwangi Joins American Think Tank


In addition, the RSF program will strengthen Equity Bank’s unsecured microlending proposition by focusing on character and capacity to repay, rather than relying on collateral.

Equity bank said the program aligns with ARRP’s goal of creating 5 million businesses and 25 million jobs by 2030.

“With a significant portion of micro, small, and medium enterprises (MSMEs) in Kenya lacking access to vital financial services – studies show unmet demand for finance as high as 83% – this initiative has the potential to unlock substantial economic growth,” Equity bank said.

“Given that only 56% of Kenyan MSMEs are formally registered, and a further 73% of those registered reported being underserved in previous studies, the RSF program has significant potential to expand financial inclusion and drive economic development.”


Also Read: Govt Clears Air on Refugees Voting in 2027


Equity Bank and IFC Speaks on Risk-Sharing Deal for Refugees

While commenting on behalf of Equity Group Managing Director and CEO Dr. James Mwangi, Equity Bank Kenya Managing Director, Moses Nyabanda said the partnership with IFC embodies Equity’s commitment to driving financial inclusion and economic empowerment across the African continent.

“The Risk Sharing Facility (RSF) program is a crucial component of our Africa Recovery and Resilience Plan (ARRP), as it directly addresses the financial needs of vulnerable populations and fosters entrepreneurship, ultimately creating jobs and building more resilient communities,” he said.

“By expanding access to credit and other financial services, we are investing in the future of refugees and host communities unlocking opportunities to transform their lives, give dignity and expand opportunities for wealth creation.”

On her part, Mary Porter Peschka, IFC’s Regional Director for Eastern Africa, stated that the groundbreaking initiative speaks directly to IFC’s mission to support private sector development and opportunity in challenging environments, including refugee-hosting areas.

“This facility is helping to unlock the entrepreneurial potential of refugees and their host communities, creating jobs, providing services, and driving development in the region,” she said.

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Equity Bank Moi Avenue Branch in Nairobi CBD.
Equity Bank Moi Avenue Branch in Nairobi CBD. PHOTO/Equity Group.

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Annah Nanjala Wekesa

Annah Nanjala Wekesa is a journalist at The Kenya Times, with a passion for crafting news-worthy stories that leave a lasting impact. She holds a Bachelor of Arts in Communication and Media from Kisii University. She has honed her skills in the art of storytelling and journalism. Her passion lies in the art of storytelling that resonates with audiences, driving a commitment to delivering news-worthy stories through the lens of integrity and precision. She can be reached at annah.wekesa@thekenyatimes.com

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