Equity Bank Kenya has launched a groundbreaking Ksh 2.6 billion ($20 million) Risk Sharing Facility aimed at improving financial inclusion in 14 marginalized counties. The initiative, in partnership with the International Finance Corporation (IFC), is designed to empower refugees and underserved communities, providing them with the necessary tools to become self-reliant.
With Kenya hosting an estimated 800,000 refugees and asylum-seekers, many of whom face significant challenges in accessing financial services, this facility is a much-needed step towards bridging the financial inclusion gap. In addition to refugees, the initiative will also target host communities, particularly those living in remote and marginalized areas, where financial services are limited or non-existent.
The Risk Sharing Facility will provide much-needed access to financing for businesses owned and operated by refugees in Kenya and the surrounding host communities. By addressing the barriers that prevent these groups from accessing capital, the facility will help them grow their businesses and contribute to the local economy.
The partnership between Equity Bank and the IFC is a significant milestone in Kenya’s financial inclusion journey. Under the agreement, the IFC will provide comprehensive advisory services to Equity Bank, enhancing the bank’s micro-lending and non-financial services. This support will help ensure that refugees and marginalized communities are not only able to access financial services but also receive the guidance needed to successfully manage and expand their businesses.
The facility will initially focus on 14 counties, with 28 branches set to roll out the program. These counties are home to some of the most underserved populations in the country, making them a primary target for the initiative. The goal is to empower individuals and communities that have long been excluded from the formal financial system, enabling them to break the cycle of poverty and build a more secure future.
In addition to providing access to financing, the program will also promote financial literacy and entrepreneurial skills, giving refugees and host communities the knowledge and resources to thrive in a competitive business environment. This initiative is a testament to Equity Bank’s commitment to fostering financial inclusion and economic empowerment for all Kenyans, regardless of their background or geographic location.
By investing in marginalized communities and refugees, Equity Bank and the IFC are not just providing financial services; they are fostering a sense of hope and opportunity for some of Kenya’s most vulnerable populations. This initiative is poised to have a lasting impact, supporting the growth of businesses, creating jobs, and improving the overall livelihoods of those in underserved regions.
