SME lending methodology revision for KWFT in Kenya

• Oct 29, 2018
• 1 min

MSC supported Kenya Women’s Microfinance Bank (KWFT) in developing a comprehensive strategy to enhance the performance of the individual and SME businesses managed by the bank. This intervention included a complete revision of KWFT’s lending methodology and a thorough overhaul of its credit risk management approach, intended to streamline client selection, strengthen risk assessment and appraisal processes, and boost turnaround times.

MSC played a key role in this strategic transformation by providing expert technical assistance and guidance throughout the process. The team worked closely with KWFT to redesign its lending framework and integrate a revised credit risk management system. Additionally, MSC supported the implementation of a customer relationship management system and conducted capacity-building sessions for the bank’s management team and staff. Their efforts ensured that the pilot phase delivered more robust risk assessment, increased operational efficiency, and fostered the development of a highly capable lending team.

The pilot phase significantly improved the lending process, marked by better client selection, robust risk assessment and appraisal, and quicker turnaround times. MSC’s support not only reduced credit risk and enhanced operational efficiency but also contributed to a marked improvement in portfolio quality. As a result, KWFT is set to expand its outreach to over 100,000 individual and SME clients by the end of 2019, with a diversified portfolio that dedicates 40% of its overall commitments to individual and SME finance, and with a strong emphasis on women-led businesses.

Kenya Women’s Microfinance Bank (KWFT) – Kenya, commissioned the project.