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Equity Bank, IFC launch Sh2.6 billion facility to support refugees

Equity Bank Kenya has launched a Ksh 2.6 billion (US$20 million) Risk Sharing Facility (RSF) in partnership with the International Finance Corporation (IFC) to improve financial inclusion in underserved regions, including refugee camps and host communities.

The programme will be implemented in fourteen marginalised counties including Turkana and Garissa which host Kakuma and Dadaab refugee camps will be dedicated to driving financial inclusion and economic empowerment across Africa.

The RSF programme will enhance Equity Bank’s unsecured micro-lending proposition, focusing on character and capacity to pay rather than collateral.

The initiative aligns with the Africa Recovery and Resilience Plan (ARRP)’s goal of creating 5 million businesses and 25 million jobs by 2030.

“Equity’s partnership with IFC will drive financial inclusion and economic empowerment in Africa. The Risk Sharing Facility program addresses vulnerable populations’ financial needs, fostering entrepreneurship, job creation, wealth creation, investing in refugees and host communities,” Equity Bank Kenya Managing Director, Moses Nyabanda said.

According to Mary Porter, IFC’s East Africa Regional Director, the programme aligns with their mission of supporting development opportunities in challenging environments.

“The initiative speaks directly to IFC’s mission to support private sector development and opportunity in challenging environments such as refugee-hosting areas. The facility will help in unlocking the entrepreneurial potential of refugees and their host communities, creating jobs, providing services, and driving development in the region,” she said.

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.

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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.

 

 

 

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