The Association of Microfinance Institutions Kenya (AMFI-K), in partnership with German Sparkassenstiftung Eastern Africa, has launched the third round of the Credit Rotational Fund (CRF). This ground-breaking initiative aims to improve access to affordable credit for marginalized communities, supporting small businesses, farmers, and start-ups while promoting economic growth and financial inclusion.
At its core, the CRF operates as a revolving pool of funds shared among microfinance institutions (MFIs) and their clients. This system ensures that credit is not only available but also affordable, enabling microfinance institutions to extend financial services to those who need them most. By reaching marginalized and underserved populations, the CRF is fostering inclusivity and bridging the gap between financial services and low-income earners.
The benefits of the CRF are wide-ranging. It provides low-interest loans, which reduce the financial strain on MFIs and their clients. This, in turn, supports the growth of small businesses and entrepreneurship, serving as a catalyst for economic development. By targeting those often excluded from traditional financial systems, the CRF also promotes financial inclusion, empowering communities and creating sustainable economic opportunities.
The initiative is driven by ambitious objectives, such as improving sustainability in the microfinance sector by boosting liquidity, establishing a network of financially empowered communities, and connecting financial services with low-income individuals.
Recently, the CRF marked a significant milestone with the signing of agreements between AMFI-K, Vision Fund Kenya, and Jawabu Kenya to launch the third round of the fund. These partnerships highlight a shared commitment to strengthening microfinance systems and uplifting lives by making credit accessible to those who need it most.
AMFI-K is calling on financial institutions, development partners, and other stakeholders to join this transformative journey. The Credit Rotational Fund is more than a financing mechanismΒ it is a tool for empowering people, fostering resilience, and building sustainable economic systems. Together, we can unlock financial opportunities, uplift underserved communities, and shape a brighter, more inclusive future.