MICROCAPITAL BRIEF: Kenya Women’s Finance Trust (KWFT) Receives $16m in Equity Investments from Incofin’s Rural Impulse Fund II (RIF II), Norwegian Microfinance Initiative (NMI) Fund III, NMI Frontier Fund

Kenya Women’s Finance Trust (KWFT), a Kenyan microfinance institution (MFI) that was established in 1982, recently announced that it has received equity investments totaling KES 1.37 billion (USD 16 million) from three funds: a total of KES 692 million (USD 8 million) from the Norwegian Microfinance Initiative (NMI) Frontier Fund and NMI Fund III, with the remaining KES 692 million (USD 8 million) placed by the Rural Impulse Fund II (RIF II), which is managed by Belgian microfinance fund manager Incofin Investment Management (Incofin IM). Based in Norway, NMI was established by members of both the public and private sectors. The percentages of the stakes in KWFT taken by each investor have not been disclosed.

KWFT plans to use the funds to develop new financial products and services in an effort to reach more clients. KWFT reported total assets of USD 236 million, return on assets (ROA) of 0.93 percent and return on equity (ROE) of 8.09 percent as of 2012. It also reported a gross loan portfolio of USD 152 million and 247,000 active borrowers, as well as total deposits of USD 109 million and 600,000 depositors as the same year.

NMI stated that its investors had committed NOK 600 million (USD 100 million) to the NMI Global Fund and NMI Frontier Fund as of December 2010. NMI Fund II was established in 2013 with investor commitments of USD 32 million. Incofin IM manages eight facilities with total outstanding investments of EUR 350 million (USD 479 million) in approximately 39 countries as of 2014.

By Juan Blanco, Research Associate

About Kenya Women’s Finance Trust (KWFT)

Kenya Women Finance Trust (KWFT) is a Kenyan microfinance institution that was established in 1982. KWFT provides microfinance services exclusively to women. KWFT received a license to accept deposits nationwide in 2010. According to the nonprofit, US-based data provider Microfinance Information Exchange (MIX), KWFT had total assets of USD 236 million, a gross loan portfolio USD 152 million outstanding to 247,000 borrowers, deposits of USD 108 million from 600,000 depositors, return on assets (ROA) of 0.93 percent and return on equity (ROE) of 8.09 percent as of 2012.

About Norwegian Microfinance Initiative (NMI)

The Norwegian Microfinance Initiative (NMI) is a partnership between the Norwegian public and private sectors that invests in and provides technical support for microfinance institutions (MFIs) in developing countries. The mission of NMI is “to contribute to the empowerment of poor people and to the creation of jobs, wealth, and economic and social sustainability in developing countries by investing in and supporting MFIs.” NMI makes its investments through three investment funds: NMI Global Fund, which supports the expansion of MFIs that already have operations deemed “large and sustainable”; NMI Frontier Fund, which supports emerging MFIs in Sub-Saharan Africa and South Asia; and NMI Fund III, which was created in June 2013 with investor commitments of USD 32 million. NMI claimed its investors had committed NOK 600 million (equivalent to USD 100 million) to the NMI Global Fund and the NMI Frontier Fund as of December 2010, the most recent month for which this information is available as of 2014.

About Incofin Investment Managament (Incofin IM)

Incofin Investment Management is a private Belgian company that develops and manages funds investing in microfinance institutions (MFIs) in developing countries. It manages eight facilities with total outstanding investments of EUR 350 million (USD 479 million) in approximately 39 countries as of 2014.

References and Additional Resources

[1] The Star: “Kenya: KWFT Gets Capital Boost for Expansion,” March 2014, http://allafrica.com/stories/201403190580.html

[2] Norwegian Microfinance Initiative: “Press Release,” March 2014, http://nmimicro.no/sites/nmimicro.no/files/KWFT%20PRESS%20RELEASE%20141803.pdf

MicroCapital Story, March 28, 2014, “Annapurna Microfinance of India Raises $5m in Series B Financing from Belgian Investment Company for Developing Countries (BIO), Incofin,” https://www.microcapital.org/microcapital-brief-anapurna-microfinance-of-india-raises-5m-in-series-b-financing-from-belgian-investment-company-for-developing-countries-bio-incofin/

MicroCapital Story, December 26, 2013, “Incofin Investment Management Seeking to Raise $200m for “agRIF” Fund for Small-Scale Agriculture,” https://www.microcapital.org/microcapital-brief-incofin-investment-management-seeking-to-raise-200m-for-agrif-fund-for-small-scale-agriculture/

MicroCapital Story, March 11, 2013, “Incofin’s Rural Impulse Fund II, Norwegian Microfinance Initiative (NMI) Frontier Fund, Invest $4.5m in Fusion Microfinance of India,” https://www.microcapital.org/microcapital-brief-incofins-rural-impulse-fund-ii-norwegian-microfinance-initiative-nmi-frontier-fund-invest-4-5m-in-fusion-microfinance-of-india/

MicroCapital Story, September 18, 2012, “ResponsAbility Invests $5m in Chase Bank Kenya, $1.25m in KWFT of Kenya, $1.2m in FINCA Microfinance Holding of USA,” https://www.microcapital.org/microcapital-brief-responsability-invests-5m-in-chase-bank-kenya-1-25m-in-kwft-of-kenya-1-2m-in-finca-microfinance-holdings-of-usa/

MicroCapital Story, October 28, 2010, “Norwegian Microfinance Initiative (NMI) Invests $4.5m in Kenya Women Finance Trust – Deposit Taking Microfinance (KWFT-DTM) and Uganda Finance Trust (UFT),” https://www.microcapital.org/microcapital-brief-norwegian-microfinance-initiative-nmi-invests-4-5m-in-kenya-women-finance-trust-deposit-taking-microfinance-kwft-dtm-and-uganda-finance-trust-uft/

MicroCapital Universe Profile: Kenya Women’s Finance Trust (KWFT), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Kenya+Women+Finance+Trust+%28KWFT%29

MicroCapital Universe Profile: Norwegian Microfinance Initiative (NMI), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Norwegian+Microfinance+Initiative+%28NMI%29

MicroCapital Universe Profile: Incofin Investment Managament (Incofin IM), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Incofin+Investment+Management+%28Incofin+IM%29

MicroCapital Universe Profile: Rural Impulse Funds (RIFs), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Incofin+Rural+Impulse+Funds+%28RIFs%29

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