SME lending methodology revision for KWFT in Kenya

• Oct 29, 2018
• 1 min

MSC helped Kenya Women’s Microfinance Bank (KWFT) develop a strategy to improve the performance of the individual and SME businesses it managed. MSC’s support enhanced the outreach of KWFT. By the end of 2019, KWFT expects to reach over 100,000 individual and SMEs.

MSC supported the development of a comprehensive strategy to improve the performance of the individual and SME businesses managed by Kenya Women’s Microfinance Bank (KWFT). As part of the assignment, MSC supported the development of a comprehensive strategy for performance improvement.

The assistance included a complete overhaul of KWFT’s individual and SME lending methodology, along with a revision of its credit risk management approach. MSC also supported the implementation of customer relationship management and provided capacity-building of the management team and staff.

The pilot delivered a significantly better client selection, robust risk assessment and appraisal, quicker turnaround, and improved portfolio quality. MSC’s support reduced credit risk, increased operational efficiency, and helped build a highly capable lending team. At the time of writing, the project was in its pilot phase.

After the pilot, the project will enhance the outreach of KWFT to over 100,000 individual and SMEs by the end of 2019, of which over 70% would be women. It would diversify KWFT’s portfolio to an extent of 40% of the overall portfolio committed to individual and SME finance.