Kenya Women Finance Trust (KWFT) has achieved what it calls a “major milestone” as it became the first microfinance institution (MFI) to gain permission by the Central Bank to accept customer deposits under the Microfinance Act 2006. The Act provides for protection of customers’ deposits to a maximum of Sh 100 thousand (USD 1.2 thousand), as is the case with commercial banks. MicroCapital has followed KWFT since 2005 and covered its transformation into a deposit-taking MFI. MicroCapital also recently covered the details of the Microfinance Act 2006, discussed here.

Among other requirements, deposit-taking licensing regulations require institutions to operate nationwide throughout Kenya and to maintain a minimum core capital of at least Sh60 million (USD 770 thousand). Smaller microfinance institutions operating within a district or a town will be required to retain capital of at least Sh20 million (USD 257 thousand). KWFT be able to use deposits to partially fund their loans and will eventually not have to rely completely on donor funds and loans from commercial institutions as MFIs without a license must do.

KWFT is a Kenyan microfinance institution (MFI) based in Nairobi, Kenya that provides financial and non-financial services to women in business. Founded in 1982, it is led by Dr. Jennifer Riria, CEO and Mwangi Githaiga, CFO. KWFT offers capital and consumer loans for groups of borrowers, or Kiwas, with a repayment schedule of nine to twelve months. According to year end 2007 data from the MIX Market, KWFT had over 164 thousand active borrowers and a total loan portfolio of USD 60.1 million. In addition, it has assets of USD 86.3 million, a debt to equity ratio of 337.16 percent and return on assets (ROA) of 5.31 percent.

By Lori Curtis, Research Assistant

Additional Resources:

Daily Nation: “Women trust fund gets nod to take in deposits”

MicroCapital Story: “Kenya Women Finance Trust (KWFT) Seeking to Attain Microfinance Regulated Institution Status”

MicroCapital Story: “Kenyan Microfinance Trade Association Puzzled as Only Two MFIs Participate in New “Friendly” Regulation”

MicroCapital Story: “Kenya Women Finance Trust (KWFT) to Transform from Microfinance Institution (MFI) into Commercial Bank”

MicroCapital Story: “Microfinance Institution Kenya Women Finance Trust Receives $600,000 Line of Credit from Incofin”

MicroCapital Story; “Microfinance Institution Kenya Women Finance Trust (KWFT) Officially Launches Kinga Ya Jamii, a Last-Expense Insurance Product“