The Kenya Women Finance Trust (KWFT), a microfinance institution (MFI) that currently provides credit to over 334,000 women clients, has been granted a license to accept deposits.
As reported in a previous MicroCapital article, the new license comes under the Kenyan Microfinance Act that came into effect in May 2008. The Microfinance Act allows the Central Bank of Kenya (CBK) to license, regulate and supervise “deposit-taking microfinance businesses” – defined as institutions that provide loans or other facilities to micro or small enterprises and low-income households, and that receive money by way of deposits or interest on deposits. Previously, MFIs could issue loans but were not allowed to take money from the public.
By Stefanie Rubin, Research Associate
The Kenya Women Finance Trust (KWFT) was established in 1982 and provides microfinance services exclusively to women clients. According to the Microfinance Information Exchange, the MIX Market, the microfinance information clearinghouse, as of 2008 KWFT had total assets of USD 121.6 million, return on assets (ROA) of 6.84 percent, return on equity (ROE) of 33.3 percent and 208,010 borrowers.
Additional Resources:
Source Article: East African Business Week: “Kenya Licenses Second Microfinance Deposit Trust,” http://www.busiweek.com/10/page.php?aid=388
MICROCAPITAL STORY: Faulu Becomes First Microfinance Institution in Kenya Licensed to Take Deposits: https://www.microcapital.org/microcapital-story-faulu-becomes-first-microfinance-institution-in-kenya-licensed-to-take-deposits/
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