Kenya Women Microfinance Bank (KWFT), formerly known as Kenya Women Finance Trust, is a prominent financial institution in Kenya that has significantly impacted the economic landscape by offering financial services tailored to empower women. Established in 2008, KWFT has grown to become the largest deposit-taking microfinance bank in Kenya, serving hundreds of thousands of women across the country. Its mission is to provide access to affordable financial services that foster economic empowerment and financial inclusion for women in Kenya, particularly those in underserved communities.
The bank’s unique approach to financial services has made it a trailblazer in Kenya’s microfinance sector. By offering products such as savings accounts, loans, and investments, KWFT has been at the forefront of driving financial literacy and independence for women. In this article, we delve into the history, growth, and services of KWFT, exploring how it has shaped the microfinance sector in Kenya and its vision for the future.
History of Kenya Women Microfinance Bank
The roots of Kenya Women Microfinance Bank trace back to 2008 when it was initially established as the Kenya Women Finance Trust (KWFT), a fully-owned subsidiary of Kenya Women’s Holding (KWH). The institution was set up with the goal of addressing the financial needs of women, especially those in rural and marginalized areas. In its early years, KWFT focused on offering financial services such as savings, loans, and other credit facilities to women, empowering them to grow their businesses and improve their livelihoods.
In 2010, the institution took a significant step forward by being authorized to accept customer deposits, marking its transition into a deposit-taking microfinance institution. This change allowed KWFT to offer more comprehensive services and cater to a broader range of financial needs. In 2013, the organization officially changed its name to Kenya Women Microfinance Bank to reflect its expanded role in the financial sector and its commitment to serving a diverse client base.
Growth and Expansion
By 2013, Kenya Women Microfinance Bank had established itself as a key player in the Kenyan financial landscape. With an asset base valued at approximately US$220 million (KES 21.75 billion), the bank had built a strong reputation for empowering women and offering tailored financial solutions. At that time, the bank had over 600,000 deposit accounts and a loan book worth approximately US$147 million (KES 14.53 billion). These figures illustrate the significant impact the bank has had in driving financial inclusion, especially for women in Kenya.
The bank’s growth trajectory continued as it became regulated by the Central Bank of Kenya (CBK), ensuring that its operations adhered to the highest standards of financial governance. As part of its efforts to comply with CBK regulations, KWFT sold 25% equity of the bank to its members and other investors in 2015, which reduced the ownership of Kenya Women’s Holding Limited to the required 25%. This move was part of the bank’s strategy to increase transparency and align with regulatory requirements.
Services Offered by Kenya Women Microfinance Bank
Kenya Women Microfinance Bank offers a wide range of financial products designed to meet the unique needs of women in Kenya. These services include:
1. Loans
KWFT provides affordable loans to women entrepreneurs, farmers, and small business owners. These loans help women expand their businesses, invest in agriculture, or cover personal expenses. The bank has various loan products tailored to different sectors, including business loans, agricultural loans, and group loans.
2. Savings and Checking Accounts
The bank offers savings accounts that encourage women to save for future needs. With accessible terms and low minimum deposit requirements, KWFT’s savings accounts enable women to build financial security. Additionally, the bank offers checking accounts, making it easy for women to manage their finances effectively.
3. Investments
KWFT also offers investment opportunities, enabling women to grow their savings and build wealth over time. These investment products are designed to be flexible and accessible, allowing women from all backgrounds to take part in wealth creation.
4. Debit Cards
To further enhance financial inclusion, KWFT provides debit cards to its customers, allowing them to access their funds conveniently and make secure transactions. These cards offer women greater control over their finances, making it easier to withdraw cash, pay for goods, and manage their accounts.
Ownership Structure and Governance
Kenya Women Microfinance Bank has a unique ownership structure that includes both Kenyan and foreign institutions. The majority of the bank’s shares are owned by Kenya Women’s Holding Limited, a key stakeholder in the financial institution. Foreign institutional investors and KWFT members hold 25% of the shares each, with the remaining 25% shared between board members and staff.
This ownership model reflects KWFT’s commitment to inclusivity and shared responsibility. By involving its members and staff in the ownership of the bank, KWFT ensures that it remains closely aligned with the needs and aspirations of the women it serves.
| Rank | Name of owner | Percentage ownership |
|---|---|---|
| 1 | Kenya Women’s Holding Limited | 25.0 |
| 2 | Foreign institutional investors | 25.0 |
| 3 | 60,974 KWFT members | 25.0 |
| 4 | KWFT board members | 20.0 |
| 5 | KWFT staff | 5.0 |
| Total | 100.00 |
Future Plans and Expansion
Kenya Women Microfinance Bank has ambitious plans for the future, including regional expansion into other East African countries. In 2016, reports indicated that the bank was considering expanding its services to Rwanda and South Sudan, aiming to provide microfinance solutions to women in these countries by 2017. Although these plans were delayed, KWFT remains focused on growth and further expanding its footprint in East Africa.
The bank is also committed to continuing its support for financial literacy programs, aiming to empower more women with the knowledge and skills needed to manage their finances effectively. By doing so, KWFT hopes to contribute to the broader goal of achieving gender equality and economic empowerment for women in Kenya and beyond.
Conclusion
Kenya Women Microfinance Bank has played a pivotal role in empowering women in Kenya through its wide range of financial services. From its inception in 2008 to its growth into the largest deposit-taking microfinance institution in the country, KWFT has continuously sought to improve financial inclusion for women. As the bank looks toward future expansion and continued growth, it remains committed to its mission of providing accessible financial services that empower women and support economic development. With its innovative products and focus on customer empowerment, Kenya Women Microfinance Bank is helping to build a more inclusive and prosperous future for women in Kenya and across the East African region.
| Company type | Private |
|---|---|
| Industry | Financial services |
| Founded | 2008 |
| Headquarters | Nairobi, Kenya |
| Key people | Jennifer Riria (Group Chief Executive) |
| Products | Loans, checking, savings, investments, debit cards |
| Revenue |  : Aftertax US$4+ million (KSh395.5 million (2013) |
| Total assets | US$220+ million (KES:21.75 billion) (2013) |
| Website | www.kwftbank.com |
