Kakuma, Kenya| Equity Bank Kenya, in collaboration with the International Finance Corporation (IFC), has unveiled a groundbreaking $20 million Risk Sharing Facility (RSF) aimed at expanding financial inclusion in underserved regions of Kenya.
The initiative, launched in Kakuma, Turkana County, will be implemented across 14 marginalized counties, including Turkana and Garissa, home to the Kakuma and Dadaab refugee camps.
It seeks to empower refugees and host communities by fostering economic independence and self-reliance through access to essential financial services.
This facility is the world’s first dedicated risk-sharing program for financial inclusion targeting refugees and their host communities, marking a significant milestone in global efforts to address financial barriers in displaced populations.
A Strategic Partnership for Economic Empowerment
The RSF program is designed to address the financial constraints that have long hindered economic participation in marginalized communities.
By enabling access to credit and other banking services, the initiative seeks to uplift individuals and businesses, enhance entrepreneurship, and create jobs—ultimately fostering socio-economic development.
Speaking on behalf of Equity Group Managing Director and CEO Dr. James Mwangi, Equity Bank Kenya Managing Director Moses Nyabanda highlighted the transformative impact of the initiative:
“This partnership with IFC embodies Equity’s commitment to driving financial inclusion and economic empowerment across the African continent. The Risk Sharing Facility is a crucial component of our Africa Recovery and Resilience Plan (ARRP), as it directly addresses the financial needs of vulnerable populations and fosters entrepreneurship. By expanding access to credit and other financial services, we are investing in the future of refugees and host communities—unlocking opportunities to transform lives, restore dignity, and create wealth.”
IFC’s Regional Director for Eastern Africa, Mary Porter Peschka, echoed this sentiment, emphasizing the program’s potential to drive economic resilience in vulnerable regions:
“This groundbreaking initiative aligns with IFC’s mission to support private sector development in challenging environments, including refugee-hosting areas. The RSF is unlocking the entrepreneurial potential of refugees and their host communities, creating jobs, providing services, and driving development in the region.”
Transforming Access to Finance for MSMEs and Refugees
A key aspect of the RSF program is the enhancement of Equity Bank’s unsecured microlending strategy, which prioritizes borrowers’ character and repayment capacity over traditional collateral requirements.
This innovative approach is expected to extend financial support to thousands of micro, small, and medium enterprises (MSMEs), which are often excluded from mainstream financial services.
According to studies, 83% of MSMEs in Kenya face unmet financial needs, limiting their ability to scale and contribute to economic growth.
With only 56% of Kenyan MSMEs formally registered, and 73% of registered businesses reporting being underserved, the RSF is expected to significantly improve financial inclusion.
In addition to financial services, Equity Bank—through the Equity Group Foundation—will offer non-financial support, including financial literacy training and agribusiness capacity building, to strengthen the sustainability of businesses and livelihoods.
The initiative aligns with Equity’s ARRP goal of creating 5 million businesses and 25 million jobs by 2030, reinforcing the role of financial empowerment in driving long-term economic stability.
A Collaborative Approach to Sustainable Development
Turkana County Governor H.E. Hon. Jeremiah Lomorukai Napotikan lauded the initiative as a model for public-private collaboration in tackling socio-economic challenges:
“The success of initiatives like the RSF reminds me that true impact is only possible through collaboration. No single entity can drive the level of change needed to transform livelihoods. Through partnerships, we can develop sustainable solutions to the challenges we face.”
He further acknowledged the IFC’s commitment to de-risking lending to marginalized communities, stating:
“By assuming 50% of the risk exposure, IFC has reaffirmed its commitment to innovative financial solutions that prioritize the most vulnerable. This shared-risk approach empowers Equity Bank and other financial institutions to extend credit to businesses that might otherwise be excluded from the financial system.”
A New Era for Financial Inclusion
The launch of the RSF represents a pivotal step toward bridging the financial gap for marginalized communities in Kenya.
By fostering entrepreneurship, job creation, and economic resilience, the initiative is expected to contribute to sustainable development, poverty reduction, and financial empowerment in some of the country’s most vulnerable regions.
As the program rolls out across the 14 counties, Equity Bank and IFC remain committed to ensuring that financial inclusion becomes a catalyst for economic transformation—not only in Kenya but as a model for other refugee-hosting nations worldwide.
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