Fintech lender 4G Capital has partnered with the International Finance Corporation (IFC) under a new risk-sharing initiative aimed at expanding access to financing for Kenya’s micro, small and medium-sized enterprises (MSMEs), particularly women-owned businesses. Alongside similar agreements with Equity Bank Kenya and KCB Bank Kenya, the three partnerships are expected to unlock approximately $144.4 million in local currency lending for microenterprises, women-owned businesses and climate-focused enterprises across Kenya.
The programme is expected to mobilize approximately $120.2 million in additional lending to MSMEs, with every dollar of first-loss capital designed to unlock about $11 in financing for small businesses. MSMEs account for approximately 90% of businesses in Kenya and employ more than 15 million people, yet many continue to struggle to access affordable financing.
IFC estimates Kenya’s MSME financing gap at nearly 21% of GDP, limiting the ability of businesses to expand operations, create jobs and invest in productivity and climate resilience. Beyond the financing, IFC said it will continue working with participating institutions to strengthen their ability to serve MSMEs and expand sustainable financing solutions that promote innovation, financial inclusion and inclusive private sector growth.
