Banking on women: How micro-finance empowers Kenyan women with small loans

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 uses the loans from KWFT to buy fabric and accesories. Photograph: Opmeer Report.

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 Kenyan 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.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 Njoroge has set up her own textile business in Thika Kenya. Photograph: Opmeer Reports.

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.”

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.

Grace has opened a KWFT agency so that local clients can deposit and access capital. Photograph: Opmeer Reports

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.

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.”


Established in 1975 as an international social investor and co-operative, Oikocredit invests in more than 800 social enterprise partners, like KWFT, across Africa, Asia and Latin America. We prioritise inclusive finance, agriculture and renewable energy sectors to empower the most disadvantaged groups in the world.

Oikocredit’s mission and associated social performance measurements align with many of the United Nation’s 17 sustainable development goals (SDGs) to reach by 2030 – particularly SDGs #1 (no poverty), #2 (no hunger), #5 (gender equality), #7 (affordable energy) and #8 (decent work and economic growth).

The UK and Ireland investment opportunity for individuals and organisations is via depository receipts in the Oikocredit International Share Foundation (OISF), which have historically delivered between 1% and 2% gross return each year, every year, since 1995*. There is no fixed notice period for withdrawals, no annual management charge, and investors have always had their capital repaid. Investments can be made in either EUROS or GBP Sterling. The minimum investment is €200 (or £150); there is no maximum.

Conditions apply, and your investment is a risk. It is not covered by a financial compensation scheme and is potentially illiquid. Past performance is not a guide to future performance and repayment of your investment is not guaranteed. Oikocredit has the right to postpone redemptions for up to five years. If you are in doubt about the suitability of this investment, please contact a financial expert.

To learn more about investing with Oikocredit, click here.

*Taken from annual reports and accounts.

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