Equity Bank efforts to enhance financial inclusion amongst the refugee population has been cited in a study conducted by IFC dubbed Kakuma as a Marketplace to drive economic empowerment by tapping into the opportunities at the expansive Kakuma refugee camp.
Driven by its agency business model and mobile money platforms, the bank has been an enabler for entrepreneurs in the region to access formal financial services.
According to the report, the Bank’s equitel loan products have emerged as the most common source of formal credit amongst Kenya’s refugee communities.
The report further stated that Equitel’s EazzyLoans are the preferred source of formal credit by refugees living in the Kakuma refugee camp and the surrounding areas.
“Refugees and the host community are offered credit through Equitel, a mobile SIM-based platform. Equity Bank also offers credit to refugees in partnership with NGOs, which select beneficiaries, disburse funds, and manage the loan on behalf of Equity Bank,” says the report.
Through Equitel, the community can access mobile loans once they open an account and issued with a sim card. The Bank is also working with development agencies and NGOs to disburse funding to select beneficiaries.
The report further stated that loans are commonly used to buy food, pay for fees, open businesses and stock up on supplies by the refugee community.
Equity Bank, the only bank that has a branch in the Kakuma camp, expects to also generate more opportunities from the development of the Kalobeyei refugee settlement. The Economic Survey 2018 found that Kenya had 488,415 refugees as at the end of 2017, a 1.3 percent drop from 494,863 refugees registered in 2016. Currently, Equity Bank has 60,000 accounts in the Kakuma region.
According to the study, the business model at Kakuma has been profitable and as a result, the Bank is interested in expanding its activities and growing footprint in the region. The demand for financial services at the camp is also on the rise and many residents with small business could benefit from the banking services.