Family Bank on Friday, September 22, unveiled an exclusive woman banking proposition dubbed ‘Queen Banking’.
In a press statement, the bank said it had set aside a Ksh50 billion kitty that will run for 2 years to cater for the diverse individual and business needs of women to promote women’s economic empowerment and deepen financial inclusion in Kenya.
Family Bank, quoting the Economics Kenya Labor Force Report 2022 noted that women make up 49.7 per cent of Kenya’s total labor force.
Additionally, according to the Global Entrepreneurship Monitor, the female entrepreneurship rate in sub-Saharan Africa is 25.9%. This means that in Africa, one in every four women start and manage a business.
“Consequently, 40 per cent of micro and formal SMEs are owned by women. McKinsey Global Institute Report 2015 finds that USD 12 trillion could be added to the global GDP if you add women to economic empowerment and narrow the gender gap,” Family Bank said in the statement.
“We are proud of the partnership we have fostered with Family Bank since 2015, and today’s launch of their new women banking proposition is supported by our capacity development initiative under the Affirmative Finance Action for Women in Africa (AFAWA) program,” said African Guarantee Fund Group CEO Jules Ngankam.
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AFAWA is a pan-African initiative that hopes to bridge the $42 billion financing gap facing women in Africa.
Family Bank Queen Banking
Speaking during the launch of Queen Banking, Family Bank Chief Executive Officer Rebecca Mbithi stated, “This is a timely product for the Kenyan market as we are seeing that women are starting businesses twice the rate of our male counterparts, yet their economic potential remains underserved.”
This comes in a time where according to a gendered Oxfam report released in 2022, 1.4 percent of the SMEs in Kenya are female owned, 48 percent male owned and 17% co-owned by both men and women
“As a Bank, we are making a deliberate effort to serve the women-owned and women-led businesses that form over 40 per cent of our client base,” Rebecca Mbithi remarked.
According to the Kenya National Bureau of Statistics, women’s empowerment is a precondition for sustained economic development and poverty reduction; and that it is inexorably linked to social transformation.
Benefits
Rebecca Mbithi noted that by increasing on-ward lending to women, the impact will not only be felt by their businesses, but also families, communities, societies, and the nation.
Through Family Bank’s Queen Banking, women will now be able to access up to Ksh7 million secured and unsecured loans through Biashara Boost.
Women doing piped water business that support the community will also get unsecured lending of up to Ksh2.5 million for their financing needs.
Unsecured lending of up to Ksh10 million will be available for working capital and to support the construction of schools with up to 95 per cent for school bus financing.
Additionally, through Queen Banking, women will have access to unsecured loan of up to Ksh 2 million for agri-business input loans, trade finance solutions and lifestyle benefits through strategic partnerships.
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The loan will also cover Chama savings and investment options as well as bundled insurance solutions.
”I thank Family Bank for remembering women and empowering them financially. I promise to support women in Githunguri to uptake the women’s banking proposition which empowers them with financial needs & provides access to non-financial benefits.” The member of Parliament for Githunguri Constiituency, Gathoni Wa Muchomba said at the event.
