The program, launched on February 4th, 2025, in Kakuma, Turkana County, is designed to empower marginalized populations across 14 counties in Kenya, including Turkana and Garissa, which host the Kakuma and Dadaab refugee camps.
This initiative marks the first global risk-sharing facility dedicated to supporting financial inclusion for refugees and their host communities, addressing the specific financial needs of these vulnerable populations.
By focusing on providing access to financial services, the RSF program aims to foster economic empowerment and create self-reliant communities.
Equity Bank Kenya Managing Director, Moses Nyabanda, commented on the significance of the partnership: “The RSF is a key pillar of our Africa Recovery and Resilience Plan (ARRP), which seeks to meet the financial needs of vulnerable populations, promote entrepreneurship, and build more resilient communities. Through expanded access to credit, we aim to unlock opportunities that will transform lives and create wealth for refugees and host communities.”
The RSF will support Equity Bank’s unsecured microlending proposition, which focuses on a borrower’s character and ability to repay rather than relying on traditional collateral.
The program is targeting to support 14 counties and 28 branches, aiming to increase access to essential financial services for underserved populations.
In addition, non-financial services such as financial literacy training and agribusiness capacity building will be offered in partnership with the Equity Group Foundation.
The program comes at a crucial time, as studies show that 83% of micro, small, and medium enterprises (MSMEs) in Kenya lack access to vital financial services.
The RSF aligns with the ARRP’s goal of creating 5 million businesses and 25 million jobs by 2030, driving long-term prosperity across the region.
“By unlocking the entrepreneurial potential of refugees and host communities, we are creating jobs, driving development, and contributing to the overall growth of the region,” commented Mary Porter Peschka, IFC’s Regional Director for Eastern Africa, expressed her confidence in the partnership.
With this initiative, Equity Bank hopes to bridge the significant financial gap that has hindered the growth of MSMEs, which are central to Kenya’s economic development.
Turkana County Governor, H.E Hon. Jeremiah Lomorukai Napotikan, welcomed the initiative, emphasizing the importance of collaboration in driving transformative change. “The success of initiatives like the RSF reminds me that true impact is only possible through partnerships. It is through such collaborations that we can create sustainable solutions to the challenges we face. The shared-risk approach, where IFC assumes 50% of the risk, is a vital step in ensuring that financial institutions can extend credit to businesses that might otherwise be excluded.”
This RSF program is expected to have a significant impact on the lives of refugees and their host communities, making them active participants in the local economy. By providing them with the financial tools to thrive, the initiative seeks to unlock opportunities for social and economic stability, ultimately leading to long-term prosperity for Kenya’s most vulnerable populations
