Equity Bank Kenya, in collaboration with the International Finance Corporation (IFC), has unveiled a $20 million Risk Sharing Facility (RSF) aimed at boosting financial inclusion in underserved regions, particularly among refugees and host communities.
The initiative, launched in Kakuma, Turkana County, will be rolled out across 14 marginalized counties in Kenya, including areas surrounding Kakuma and Dadaab refugee camps. The program is designed to support economic empowerment by providing refugees and their host communities with greater access to credit, financial training, and entrepreneurship opportunities.
Dr. James Mwangi, CEO of Equity Group Holdings, described the initiative as a significant step in driving financial inclusion and economic empowerment across Africa, stating: “This partnership with IFC embodies Equity’s commitment to addressing the financial needs of vulnerable populations and fostering entrepreneurship. By expanding access to credit, we are investing in the future of refugees and host communities, unlocking opportunities for wealth creation.”
Mary Porter Peschka, IFC’s Regional Director for Eastern Africa, emphasized the program’s role in private sector development, particularly in refugee-hosting regions. “This facility will unlock the entrepreneurial potential of refugees and their host communities, creating jobs and driving development in the region,” she noted.
The RSF program will leverage Equity Bank’s unsecured microlending model, allowing individuals and businesses to access financing based on character and capacity to pay rather than collateral. With 28 Equity Bank branches involved, the initiative will provide not only financial services but also non-financial support, such as financial literacy training and agribusiness capacity building through the Equity Group Foundation.
Turkana County Governor, H.E. Jeremiah Lomorukai Napotikan, praised the initiative, highlighting the importance of public-private partnerships in addressing economic challenges. “No single entity can drive the level of change needed to transform livelihoods. The RSF exemplifies the power of collaboration, with IFC sharing 50% of the risk to protect vulnerable communities.”
With Kenya’s MSME sector facing an 83% unmet demand for finance, this initiative is expected to unlock substantial economic growth, aligning with Equity’s Africa Recovery and Resilience Plan (ARRP), which aims to create five million businesses and 25 million jobs by 2030.
