Top tier lender Stanbic Bank has partnered with International Finance Corporation for a women's banking proposition dubbed Dare to Aspire Dare to Achieve (D.A.D.A).
The initiative is set to reduce the financial inclusion gender gap in Kenya to the segment that has been referred to have a better loan payback rate.
According to Stanbic Holdings director Dorcas Kombo, the product has been derived from women's need for financial inclusion, yet they still struggle to run their business due to low capital.
In addition, the bank has set aside Sh20 billion to lend to SMEs and women entrepreneurs to tap into it.
"DADA will address women's needs to borrow, save and the provision of financial information to unleash all entrepreneurial endeavour," Kombo said.
The gender gap stands at nine per cent in the developing world, representing over one billion women who are still excluded in access to financial services.
According to central bank data for 2016, 82 per cent of total savings are by women. The group also contribute more than 70 per cent of household budget.
"Women will be the focal point for collective financial inclusion in the country," IFC country manager Manuel Moses said.
The program comes at a time banks are adopting new lending solutions to SMEs and grow their profits and increase market share.
Recently, KCB bank and Co-operative bank launched Stawi to support the segment that has been termed as high risk borrowers.
The stawi loan product also includes DTB bank, NIC and CBA Kenya and has been endorsed by Central Bank of Kenya as the financial institutions await the likelihood of interest rate cap repeal. In April, IFC also lent Sh10 billion to Equity Bank for onward lending to SMEs.
