In a move to strengthen support for women entrepreneurs and startups in Kenya, KCB Bank has secured a significant funding injection of €30 million (equivalent to Kshs 4 billion). The funds, provided by The Bill & Melinda Gates Foundation and the European Investment Bank, will be channeled through KCB’s Female-Led and Made Enterprises (FLME) initiative and the KCB Foundation 2jiajiri program.
The FLME initiative, launched two years ago with a commitment of Kshs 250 billion, aims to provide flexible, accessible, and affordable solutions for women entrepreneurs. Recognizing the challenges faced by women in accessing financial services, FLME offers a comprehensive platform to support women and young people in navigating the entrepreneurial journey.
Under the FLME program, KCB Bank has already made significant strides, disbursing loans totaling Kshs 111.6 billion to over 600,000 FLME customers. This accounts for 35% of the bank’s SME loan portfolio, highlighting the impact and importance of initiatives tailored to women entrepreneurs.
Annastacia Kimtai, Managing Director of KCB Bank Kenya, said, “Despite their dominance, women’s economic potential is dwarfed by multiple challenges such as the lack of appropriately designed financial products, weak institutional capacity, and lack of incentives within banks to target and lend to women. The financial industry stands to significantly increase its bottom line by addressing banking’s gender gap: female financial inclusion – particularly the promotion of financial literacy, digital banking, and access to credit.”
Statistics indicate that while 24% of entrepreneurial activities in Africa are led by women, they often encounter challenges such as lack of startup capital and support ecosystems. Through partnerships like the one between KCB Bank, the Bill & Melinda Gates Foundation, and the European Investment Bank, efforts are underway to bridge the financing gap for female entrepreneurs.
Thomas Östros, Vice President of the European Investment Bank, hailed KCB Bank’s gender-focused microfinance scheme as a benchmark for addressing the financing gap for female entrepreneurs in Africa. He said, “The pioneering gender focused microfinance scheme led by KCB Bank Kenya will establish a benchmark for other visionary financing programmes to tackle the $42 billion financing gap for female entrepreneurs in Africa,
In addition to providing financial support, the FLME initiative serves as a comprehensive intervention platform, offering tailored assistance to women and young people embarking on the entrepreneurial journey. With continued investment and collaboration, initiatives like FLME are poised to drive meaningful change and empower women entrepreneurs across Africa.