$20M Facility to Boost Financial Inclusion for Refugees in Kenya

Equity Bank and the International Finance Corporation (IFC) have launched a $20 million risk-sharing facility to enhance financial inclusion for underserved communities in 14 counties across Kenya, including refugees and their host communities. 

This groundbreaking initiative aims to empower refugees and host communities by improving their economic stability and self-reliance.

The program seeks to foster entrepreneurship, create jobs, and drive sustainable economic development in marginalized regions by providing access to credit and other financial services.

“This partnership with IFC embodies Equity’s commitment to driving financial inclusion and economic empowerment across the African continent,” noted Moses Nyabanda, Equity Bank Kenya Managing Director.

Key Program Features

• Focus: The program will initially focus on 14 counties, including Turkana and Garissa, home to the Kakuma and Dadaab refugee camps.
• Enhanced Access to Finance: The RSF will enhance Equity Bank’s unsecured micro-lending proposition, prioritizing character and capacity to pay over collateral.
• Holistic Approach: The program will include non-financial services such as financial literacy training and agribusiness capacity building, delivered in partnership with the Equity Group Foundation.

Studies have shown that a significant portion of Kenyan MSMEs lack access to vital financial services, with unmet demand for finance reaching as high as 83%.

By addressing this gap, the RSF has the potential to unlock substantial economic growth and contribute significantly to Equity Bank’s Africa Recovery and Resilience Plan (ARRP), which aims to create 5 million businesses and 25 million jobs by 2030.

“This groundbreaking initiative speaks directly to IFC’s mission to support private sector development and opportunity in challenging environments, including refugee-hosting areas,” said Mary Porter Peschka, IFC’s Regional Director for Eastern Africa.

Partnerships and Support

• IFC’s participation in the RSF demonstrates its commitment to supporting private sector development in challenging environments.
• The initiative has received support from the Turkana County Governor, who emphasized the importance of collaborative efforts in addressing the challenges faced by marginalized communities.

“The success of initiatives like the RSF reminds me that true impact is only possible through collaboration. No single entity can drive the level of change needed to transform livelihoods, H.E Hon. Jeremiah Lomorukai Napotikan, Turkana County Governor, said on the project.