AMERMS Workshop 6: Microfinance in Rural Areas and Arid and Semi-Arid Land (PPT by Mwangi Githaiga)

MICROCREDIT SUMMIT 2010

Mwangi Githaiga, Managing Director, KWFT

8th April 2010 at KICC, Nairobi

PLENARY SESSION

‘Cutting Edge for Microfinance in Rural, Arid and Semi-Arid Areas’

A Case of Kenya Women Finance Trust, KENYA

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INSITITUTIONAL BACKGROUND

• Women serving and established in 1981 by Kenyan Women,

• Affiliated to WWB among other MFI bodies,• Extensive branch network of 202 of outlets serving

350,000 clients• Portfolio outstanding of 140 million dollars, • Serves the rural, remote and poor urban,• Currently operated a microcredit programme only,• CBK licensed to conduct nationwide deposit taking

on 6th April 2010.

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INSTITUTIONAL BACKGROUND

Vision:

‘to be the Women Financial Solutions Provider with a Difference’

Mission:

‘to partner with women in their creation of wealth’

Target group:

‘On the average, she is a poor woman in the rural and slum areas who balances business and family responsibilities’.04/13/23 4

OUTREACH TO THE RURAL, ARID AND SEMI-ARID AREAS

KWFT serve this market through:

• Highly decentralized offices network,

• Adoptable and innovative products,

• Delivery channels,

• Clients social support.04/13/23 5

OFFICE NETWORK

• Operations managed from Nairobi National office,

• Highly decentralized offices network,

• Regional offices enable devolution of authority,

• Penetrates deep into the rural and remote parts of Kenya,

• Have a total of 202 business outlets.04/13/23 6

KWFT OFFICE NETWORK 2010

ZONES UNITS DESKS TOTAL

EASTERN 35 10 45WESTERN 53 17 70CENTRAL 48 17 65

TOTALS 136 44 180

BRANCH OFFICES 3

REGIONAL OFFICES 16

ZONAL OFFICES 3HEADQUARTERS 1

TOTALS 203

PRODUCTS & SERVICES

Focus on women’s empowerment and seek to

address the family needs. Through:• Business Loans (group and individual),• Education Loans, • Water and Sanitation Solutions (20,000 families),• Clean Energy and Environment,(solar, rural

electrification and LPG)• Health Insurance Products (inpatient, burial and

maternity cost),• Food Security and Agricultural Products,• Start- up Loans (33,000 young women

supported). 04/13/23 8

DELIVERY CHANNELS

• Client support to peers through collective approaches,

• Continuous institutional connectedness with the clients,

• Fast affordable and efficient services,• Accessibility through a large institutional network

and efficient monitoring,• Involvement of clients in the administration of the

programme,• Mobile phone banking,• Ensuring flexibility by listening keenly to clients

and addressing their needs.04/13/23 9

SOCIAL AND BUSINESS SUPPORT

INTERVENTIONS

Through:• Ongoing business support,• Capacity building, • Forums for mentorship and interaction,• Organizing visibility for women enterprises,• Business advisory and management skills,• A quarterly newsletter (The Pillar) to inform,

educate and share information on women and their enterprises.

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CHALLENGES OF OPERATING IN RURAL AND REMOTE AREAS (cont)

• Clients Access- lack of basic infrastructure. Use alternative delivery mechanisms and technology,

• Product offering- growth of business in the rural and remote areas is slow and may at times not be able to sustain the infrastructure needed to support them,

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CHALLENGES OF OPERATING IN RURAL AND REMOTE AREAS

• Cost of Technology- future rural and remote areas operations will depend on how efficiently the institution will be able to develop and utilize technology based solutions,

• Human Resource and Capacity- hard to sustain workforce in the rural and remote areas,

• Insecurity: officers exposed to long distance travelling and insecurity.

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