Equity Bank secures $20 million to boost financial access in Kenya’s refugee regions

Timilehin Adejumobi -
Key Points
  • Equity Bank secures a $20 million agreement with IFC to enhance financial inclusion in Kenya’s refugee-hosting regions, benefiting marginalized communities.
  • The initiative targets small businesses and individuals in Turkana and Garissa, aiming to improve access to capital for refugees and host communities.
  • Equity Group reported a 10.73% increase in clients in 2023, with total assets rising to Ksh1.75 trillion ($13.57 billion), reinforcing its status in East Africa.

Equity Bank, the flagship banking subsidiary of Equity Group, East and Central Africa’s leading financial services group led by Kenyan banker James Mwangi, has partnered with the International Finance Corporation (IFC) to secure a $20 million investment aimed at improving financial services in Kenya's refugee-hosting regions.

This initiative marks a significant step toward increasing access to capital for underserved communities, particularly in the Turkana and Garissa counties, which host large populations of displaced persons.

Fostering economic opportunities for displaced individuals

The project is designed to enhance financial inclusion for small businesses and individuals in these marginalized areas.

The $20 million facility will benefit both refugees and the local communities that host them, providing essential resources to improve their economic stability. The initiative aligns with the urgent need for support in a continent where approximately 30 million people are displaced, representing nearly one-third of the global total.

With additional backing from a $4 million investment from PROSPECTS—a global partnership dedicated to improving education, social protection, and employment for displaced individuals—this project is set to establish a benchmark for private sector involvement in supporting vulnerable populations in Africa.

Strategic support for refugee-owned businesses

Under the agreement, the IFC will cover 50 percent of the risk-sharing facility, amounting to $10 million, to bolster financing access for refugee-owned businesses and surrounding communities. Furthermore, the IFC will provide advisory services to enhance Equity Bank's microlending and non-financial offerings for these populations.

"Our partnership with IFC to support forcibly displaced persons and their host communities reflects our mission to transform lives and create wealth opportunities," said James Mwangi, CEO of Equity Group. "This collaboration will enhance our social impact across 14 counties, including those that host major refugee camps."

Equity Group’s visionary leadership and commitment to growth

Under James Mwangi's leadership, Equity Group has seen substantial growth, expanding its active client base by 10.73 percent from 17.7 million in 2022 to 19.6 million in 2023. The group’s total assets surged 6 percent to Ksh1.75 trillion ($13.57 billion), confirming its status as East Africa's second-largest bank.

In a bid to address the gender pay gap, Equity Group has also announced plans to raise salaries for its female employees. The bank reported a profit of $229 million for the first half of 2024, reflecting a 12 percent increase compared to the same period last year.