AGF and KWFT Announce KSh 725 Million Risk-Sharing Partnership to Boost Women-Led SMEs
In a significant move to bolster financial inclusion for women entrepreneurs, the African Guarantee Fund (AGF) and Kenya Women Microfinance Bank (KWFT) have unveiled a KSh 725 million risk-sharing partnership agreement. The landmark deal, signed in Nairobi, is designed to unlock credit access for women-led small and medium enterprises (SMEs) that have traditionally faced challenges in securing financing from mainstream lenders. The partnership will see AGF provide partial credit guarantees to KWFT, enabling the women-focused financial institution to expand its lending portfolio to female entrepreneurs across various sectors of the economy.
The agreement addresses one of the most persistent barriers facing women entrepreneurs – the lack of adequate collateral required by conventional lenders. Under the risk-sharing arrangement, AGF will cover up to 50% of potential losses on loans extended by KWFT to qualified women-led businesses. This de-risking mechanism is expected to catalyze lending to sectors such as agribusiness, manufacturing, and services where women entrepreneurs are particularly active but often underserved. This partnership represents our shared commitment to breaking down the financial barriers that hinder the growth of women-led enterprises, said AGF Group CEO, Jules Ngankam, during the signing ceremony at a Nairobi hotel.
The initiative has been welcomed by women business leaders and financial inclusion advocates across Kenya. For years, women entrepreneurs have demonstrated their creditworthiness and business acumen, yet access to substantial financing remains a major constraint. This partnership will enable thousands of women to scale their operations and create more jobs, said Dr. Jennifer Riria, Group CEO of Kenya Women Holding, the parent company of KWFT. The partnership includes a capacity development component, where borrowers will receive business development services to enhance their financial management skills and improve their chances of success.
The long-term impact of this collaboration is expected to be substantial, with projections indicating it could facilitate loans to over 5,000 women-led SMEs within the first three years of implementation. The partnership aligns with Kenya’s Big Four Agenda and Vision 2030 objectives of promoting inclusive economic growth. By empowering women entrepreneurs, we are not just transforming individual businesses but strengthening the entire economic fabric of our nation. This is exactly the type of innovative financing solution needed to bridge the gender credit gap in Kenya, noted KWFT Managing Director, Muthoni Gitonga. The success of this model could potentially be replicated with other financial institutions across East Africa, creating a ripple effect in women’s economic empowerment throughout the region.