-‘Banking on women’-: How microfinance empowers Kenyan women with small loans

-‘Banking on women’-: How microfinance empowers Kenyan women with small loans

7 March 2018 at 17:24 - by Archie Pearson - 0 comments

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“In Africa, there is nothing as important as empowering a woman. When you empower a woman, it’s as if you are helping the whole country. The Kenyan Women Microfinance Bank has empowered me with many things: with education, with knowledge and with money.”-Grace Njoroge

Grace Njoroge is an entrepreneur, wife, and mother of three sons living in a town northeast of Nairobi called Thika. Like many other Kenyan women, she was struggling to sustain and grow her business and care for her family. As her hardware business continued to struggle, she decided to move into something more familiar: textiles. However, she was lacking the necessary capital and expertise not only to establish her new business, but to ensure that it thrived.

The Kenya Women Microfinance Bank (KWFT)

In 1996 Grace joined the Kenya Women Microfinance Bank (formerly known as Kenya Women Finance Trust or KWFT). KWFT is a microfinance institution founded in 1981 by a small group of women and provides loans and savings products to more than 500,000 women in Kenya.


Grace Njoroge uses the loans from KWFT to buy fabric and accessories.  Photograph: Opmeer Reports.

KWFT’s focus on empowering women through ensuring greater access to capital attracted Oikocredit to partner with them in in 2010. Microfinance increases women’s abilities to make choices and become self-reliant. In addition, it is linked to poverty reduction, financial sustainability, an increased well-being,  and social and political empowerment for women.

Grace’s Story

Besides financing, Oikocredit supports its partners in improving social performance and capacity building. Partners like KWFT, in turn, offer training and advice to their clients.

“What I liked most when I joined KWFT was their training. They gave us a lot of training in business -how to handle money - and the risks we should try to avoid when it comes to borrowing.”

As soon as she joined, Grace formed a small savings group where she and a few other women were given a group loan. After her group completed a KWFT training, paid back their loan and demonstrated they had responsible financial management processes in place, the women received individual loans to help them grow their businesses and support their families.

KWFT’s support enabled Grace to develop and expand the textile company she started in 1998:

“When I shifted to textiles, I was alone. I could not even afford a stand for the materials. But today I have five employees, enough shelves for my goods and a nice display. My business has developed gradually and I expect it to grow more.”

Using a KWFT loan, Grace Njoroge has been able to set up her own textile business in Thika Kenya.  Photograph: Opmeer Reports.

Regarding other women in Grace’s savings group, one woman was granted loans to fund several greenhouses and a water tank to expand her farm, while another funded her daughter’s education seeing her go from Form 2 (second year of secondary school) all the way through university.

Growth and entrepreneurship

With time, and after showing promise as a responsible business owner, Grace has been able to increase the size of her individual loan from a maximum of 30,000 Kenyan shillings (roughly € 270) when she first joined KWFT, to 3 million shillings (€ 27,000) today.

Grace’s entrepreneurial spirit is flourishing: she recently opened a KWFT agency in addition to her textile business. Here KWFT clients can deposit and withdraw money using her premises without having to go to a branch far away. After recently purchasing KWFT shares, she now generates additional income as a shareholder of KWFT. 

Grace has additionally opened a KWFT agency so that local KWFT clients can deposit and access capital without the hassle of having to go too far away. Photograph: Opmeer Reports

While her husband works in construction, her two eldest sons are at university (both have savings accounts with KWFT) and her youngest boy is in primary school. And Grace has big aspirations for the future of her business:

“My dream for the future is to have a garment production factory. I would be making uniforms for KWFT, uniforms for the Kenyan navy, uniforms for anybody that needs them.”

To find out more about how to invest in the Oikocredit International Share Foundation, click here


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