In a bid to empower women entrepreneurs, the FLME proposition is revolutionizing access to financial and non-financial support tailored to their specific needs. Spearheaded by KCB Bank, this initiative aims to break barriers by easing credit requirements and documentation, ensuring faster loan processing periods. Under FLME, women in business can now access unsecured loans of up to KES 10 million, providing them with the necessary capital to scale their ventures.
Moreover, FLME extends its support beyond financial assistance. Women in Chamas, for instance, can now leverage their group savings to access loans of up to 10 times their savings, capped at an impressive KES 250 million. Additionally, FLME Simba Health offers a comprehensive medical insurance solution designed specifically for women-owned businesses with a minimum of three employees. This inclusive insurance scheme covers not only the owners but also their employees, ensuring their health needs are taken care of.
Furthermore, FLME doesn't stop at financial aid. It recognizes the importance of holistic support for women entrepreneurs, offering a range of non-financial services such as networking opportunities, specialized training through workshops and webinars, as well as access to local and international business trips facilitated by KCB's Biashara Club. For those not in Biashara Club, you can visit a KCB branch and fill an application form to sign up. Signing means that you commit to paying a monthly subscription fee of Kes 1,065+VAT. With FLME, women in business are not only gaining access to crucial financial resources but also the knowledge and networks needed to thrive in today's competitive market landscape.
“In Kenya's bustling business landscape, women play an indispensable role in running businesses while nurturing families, communities, and the society at large. Yet, they often find themselves at the bottom of the financial inclusion ladder”. These words, spoken by KCB Bank Kenya's Managing Director, Annastacia Kimtai, and resonate deeply with the challenges that women face when seeking access to credit and financial empowerment.
Kimtai shared this message during one of our Female-Led Made Enterprises (FLME) engagements, which has spanned across Kenya .
You were part of our engagements, and we are grateful for your participation in this transformative journey, and we believe that the conversation should continue. As part of this effort, we are excited to introduce our upcoming monthly newsletter and thank you for subscribing to the inaugural edition.
As FLME continues to champion women's empowerment in business, 2024 brings a plethora of engaging initiatives aimed at reaching out to women, across diverse sectors and regions. With KCB Bank Kenya's Managing Director, Annastacia Kimtai, leading the charge, FLME engagements are set to resonate in several counties, including Kilifi, Elgeyo Marakwet, and Homabay, among others. These interactions serve as crucial platforms for understanding the specific needs of FLME customers, fostering stronger relationships, and ensuring tailored solutions for their businesses.
Moreover, we are also taking proactive steps in engaging FLME customers in seven counties, reinforcing the commitment to inclusivity and support. From Baringo to Ugunja, these engagements facilitate direct dialogue, enabling the bank to address challenges effectively and provide strategic guidance to women entrepreneurs.
In addition to physical engagements, FLME extends its reach through unique platforms like the Lady Captain Breakfast engagements in golf clubs across the country. These gatherings not only offer a delightful morning of golf but also foster insightful discussions on "women in business & entrepreneurship," empowering lady golfers with valuable knowledge and inspiration.
These workshops, conducted by qualified trainers, align with the objectives of KCB's Biashara Club, providing practical skills and insights to enhance business acumen among participants.
Complementing physical engagements, FLME amplifies its impact through webinars and workshops, leveraging digital platforms to reach a broader audience. These virtual sessions empower women with knowledge and resources essential for navigating the dynamic business landscape.
Ultimately, the success stories of FLME customers stand as powerful testimonials to the transformative support provided by the bank. Through these narratives, FLME continues to inspire and empower women entrepreneurs, reaffirming its commitment to driving economic growth and gender equality in Kenya.
Empowering Kenya's Economy:
A Glimpse into Micro, Small, and Medium Enterprises (MSMEs) which are the lifeblood of Kenya's economy, contributing approximately 40% of the GDP, with the majority operating in the informal sector. However, a stark disparity exists: of the 7.41 million MSMEs in Kenya, only 1.56 million are licensed, leaving 5.85 million unlicensed.
When we delve into the gender aspect, 31.4% of SMEs in Kenya are owned by women, 48% by men, and 17% are co-owned by both genders. Shockingly, 61% of the unlicensed SMEs are owned by women, as reported by the Kenya Association of Manufacturers.
Research highlights a critical issue faced by women entrepreneurs: their traditional responsibilities, such as family commitments, can often hinder the success of their businesses. While entrepreneurship offers flexibility, it also presents unique challenges.
The Gender Gap in Access to Finance
According to the World Bank's 2017 Global Index Report, 56% of adults in the developing world are "unbankable," with a significant 9-percentage point gender gap, disproportionately affecting women. In Sub-Saharan Africa, only 37% of women have bank accounts, compared to 48% of men, and this gap has widened over the years. The reasons behind this gap are multifaceted, including a lack of personal assets and credit history, sexual stereotyping, and discrimination.
Supply-side factors further hinder women's access to formal credit. When they do secure financing, women often face more stringent loan terms, including higher interest rates and collateral requirements compared to men.
KCB Bank's Commitment to Empowering Female Entrepreneurs
KCB Bank Kenya understands the pressing need to address these disparities, and that's why we've introduced the Female-Led Made Enterprises (FLME) proposition. We've allocated KShs. 250 billion over the next five years to support women-owned enterprises.As of March 2024 we had disbursed disbursed loans totaling KShs.114.6 billion, serving 683,887 FLME customers. To make this a reality, we've streamlined credit requirements and documentation for faster loan processing.
Additionally, we're collaborating with partner organizations, like Kayana, KNCCI, KAWBO and more to provide non-financial support to women entrepreneurs. We invite you to be part of this journey as we unlock the untapped potential of female entrepreneurs in our country.
Under our Kshs. 50 billion annual initiative, we offer unsecured loans of up to Kshs. 10M. We encourage you to visit your nearest KCB branch to learn more about these opportunities and continue subscribing to this newsletter to get to get more information.
A Holistic Approach to Empowerment Beyond credit,
KCB Bank Kenya offers trade finance solutions, payment solutions, and insurance solutions tailored to your business needs. Through this newsletter, we aim to educate, empower, and inspire you to grow your business and achieve your goals.
Perhaps you've never borrowed from a bank for your own reasons, but as you contemplate the growth of your business, you need a financial partner who understands your unique needs. KCB Bank, through FLME, is here to be that partner, supporting you every step of the way.
Join us in this journey of empowerment, and let's together transform the landscape for female entrepreneurs in Kenya. We look forward to sharing valuable insights and fostering a prosperous future for all.
