MICROCREDIT SUMMIT 2010

Mwangi Githaiga, Managing Director, KWFT

8th April 2010 at KICC, Nairobi

PLENARY SESSION

‘Cutting Edge for Microfinance in Rural, Arid and Semi-Arid Areas’

A Case of Kenya Women Finance Trust, KENYA

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INSITITUTIONAL BACKGROUND

• Women serving and established in 1981 by Kenyan Women,

• Affiliated to WWB among other MFI bodies,• Extensive branch network of 202 of outlets serving

350,000 clients• Portfolio outstanding of 140 million dollars, • Serves the rural, remote and poor urban,• Currently operated a microcredit programme only,• CBK licensed to conduct nationwide deposit taking

on 6th April 2010.

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INSTITUTIONAL BACKGROUND

Vision:

‘to be the Women Financial Solutions Provider with a Difference’

Mission:

‘to partner with women in their creation of wealth’

Target group:

‘On the average, she is a poor woman in the rural and slum areas who balances business and family responsibilities’.04/13/23 4

OUTREACH TO THE RURAL, ARID AND SEMI-ARID AREAS

KWFT serve this market through:

• Highly decentralized offices network,

• Adoptable and innovative products,

• Delivery channels,

• Clients social support.04/13/23 5

OFFICE NETWORK

• Operations managed from Nairobi National office,

• Highly decentralized offices network,

• Regional offices enable devolution of authority,

• Penetrates deep into the rural and remote parts of Kenya,

• Have a total of 202 business outlets.04/13/23 6

KWFT OFFICE NETWORK 2010

ZONES UNITS DESKS TOTAL

EASTERN 35 10 45WESTERN 53 17 70CENTRAL 48 17 65

TOTALS 136 44 180

BRANCH OFFICES 3

REGIONAL OFFICES 16

ZONAL OFFICES 3HEADQUARTERS 1

TOTALS 203

PRODUCTS & SERVICES

Focus on women’s empowerment and seek to

address the family needs. Through:• Business Loans (group and individual),• Education Loans, • Water and Sanitation Solutions (20,000 families),• Clean Energy and Environment,(solar, rural

electrification and LPG)• Health Insurance Products (inpatient, burial and

maternity cost),• Food Security and Agricultural Products,• Start- up Loans (33,000 young women

supported). 04/13/23 8

DELIVERY CHANNELS

• Client support to peers through collective approaches,

• Continuous institutional connectedness with the clients,

• Fast affordable and efficient services,• Accessibility through a large institutional network

and efficient monitoring,• Involvement of clients in the administration of the

programme,• Mobile phone banking,• Ensuring flexibility by listening keenly to clients

and addressing their needs.04/13/23 9

SOCIAL AND BUSINESS SUPPORT

INTERVENTIONS

Through:• Ongoing business support,• Capacity building, • Forums for mentorship and interaction,• Organizing visibility for women enterprises,• Business advisory and management skills,• A quarterly newsletter (The Pillar) to inform,

educate and share information on women and their enterprises.

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CHALLENGES OF OPERATING IN RURAL AND REMOTE AREAS (cont)

• Clients Access- lack of basic infrastructure. Use alternative delivery mechanisms and technology,

• Product offering- growth of business in the rural and remote areas is slow and may at times not be able to sustain the infrastructure needed to support them,

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CHALLENGES OF OPERATING IN RURAL AND REMOTE AREAS

• Cost of Technology- future rural and remote areas operations will depend on how efficiently the institution will be able to develop and utilize technology based solutions,

• Human Resource and Capacity- hard to sustain workforce in the rural and remote areas,

• Insecurity: officers exposed to long distance travelling and insecurity.

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