MICROCAPITAL STORY: Kenya Women Finance Trust (KWFT) to Transform from Microfinance Institution (MFI) into Commercial Bank

Kenya Women Finance Trust (KWFT) has begun the conversion process into a commercial bank that is expected to be completed by the end of 2008. The conversion follows the footsteps of K-Rep Bank and Equity Bank, former Kenyan microfinance institutions that were transformed into commercial banks in 1999 and 2004, respectively. According to CEO Dr. Jennifer Riria, KWFT hopes to become a “one-stop-shop” financial institution that will offer savings accounts, in addition to loans.

Ms. Mary Iskerderian, President and CEO of Women’s World Banking (WWB), KWFT’s primary international microfinance network, is on a four-day visit in Kenya to speak with key officials of Ministry of Finance and the Central Bank of Kenya (CBK) regarding the formation of the new bank.

KWFT is a Kenyan microfinance institution (MFI) based in Nairobi, Kenya that provides financial and non-financial services for 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 2006 data from the Microfinance Information eXchange (MIX), KWFT has 85,555 active borrowers and a total loan portfolio of USD 32.7 million. In addition, it has assets of USD 52.1 million, a debt to equity ratio of 273 percent and return on assets (ROA) of 4.37 percent. Its primary network is Women’s World Banking (WWB), an international microfinance network. It received a grade of B+ in MicroRate’s February 2007 evaluation.

For past MicroCapital stories on KWFT, please see ones posted on October 24, 2006 and November 15, 2007.

By: Mary Fu

Additional Resources:

allAfrica.com: “Kenya: Microfinance Craving for Bank Status”

K-Rep Bank: About

Equity Bank: About Us

Kenya Women Finance Trust (KWFT): About

KWFT: Products and Services

Kenya Broadcasting Corporation: “KWFT to transform into a financial institution”

Women’s World Banking (WWB): About

MicroCapital.org article, 9/20/05: “Microfinance Networks (wholesale transnational): Defined and Listed”

MicroCapital.org article, 10/24/06: “Microfinance Institution Kenya Women Finance Trust Receives $600,000 Line of Credit from Incofin”

MicroCapital.org article, 11/15/07: “Microfinance Institution Kenya Women Finance Trust (KWFT) Officially Launches Kinga Ya Jamii, a Last-Expense Insurance Product”

 

MIX Market: Profile for KWFT

MicroRate: Public Ratings

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