KWFT Banking on Women

Over the last ten years, we have together accumulated a great deal of experience.  We are wholly convinced that: Low-income women entrepreneurs and producers are the economic actors.  Governments, financial institutions, NGOs and funders have important roles. 

Banking on low income women entrepreneurs is not only the right thing to do, it is the smart thing to do – as an effective means to alleviate poverty, encourage entrepreneurship and reach an emerging growth market.

Low-income women operating in savings and credit groups charge themselves interest rates substantially higher than the rates charged in controlled subsidized formal financial institutions.  They therefore do not need subsidies.  Infact, Microfinance Institutions cannot afford to subsidize borrowers.  What they need is access to financial and non-financial service in order to transform their lives and participate in the transformation of the way the World works.

Provision of business development services although essential for business should be treated differently from the financial service transactions with different funding and cost arrangements.  Often the business development services should be provided by the same Institution that avails the loans.  This is because it is only the Institution that has developed connectedness with the clients that understands best approaches in provision of non-financial services to the same target group.

Most poor people in Kenya are women and most women are poor.  Almost all low-income women are economically active.  Most are micro-entrepreneurs and self employed in the informal sector, with major economic roles in farming, commerce, transport and small industry.  These roles – and the women in these roles – are often undervalued.

From these experiences and conclusions, KWFT has decided to bank on women in the transformation of the way the World Works because the Institutions belief is very specific in this respect.
 

KWFT Believes That:

• Low-income women are viable clients, entrepreneurs and change agents.
• Microfinance services must work for the poor women and must be financially sustainable.
• Women’s leadership and participation is important and a crucial element in achieving development.
• The power of autonomous, self determined local organizations responding to local needs must never be replaced by foreign development with different development.
• Mutual accountability for results is key in driving performance, excellence and impact.
• Building financial systems that work for the majority should be a valued principle in providing development interventions for low-income women.
• POOR WOMEN’S RIGHTS ARE HUMAN RIGHTS – Hence KWFT Motto derived from a Chinese Poem: