KBA CEO CHAT - Women in Business

CEO | Mwangi Githaiga, KWFT, CEO
MONTH | May 2016
Chat Admin
Good morning everyone!
Chat Admin
We are happy to welcome you to this year's first "My Chat with a Bank CEO" session
SOLOMON KARATHI
Good Morning!
Chat Admin
Our topic for this morning is Banking Women in Business and our host is Mr. Mwangi Githaiga, the CEO of KWFT Bank Limited.
Chat Admin
Good morning Solomon! Glad you could join us
Chat Admin
Hello Polly, good to see you online
RUTH MAWEU
Good morning
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Hello Maureen and Ruth, thanks for joining in
IRENE NJOGU
good morning
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Good morning Irene, Lyceline and Charles. Good to have you with us this morning.
Chat Admin
Moses, Kamau and Dedan, we are glad you could join the chat this morning. We look forward to your participation
nuru mugambi
Good morning all
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Jimmy, Jeremiah and Juliana, Karibuni. We do look forward to your participation in this morning's discussion
Gladys Chepkonga
good morning
nuru mugambi
Hi Solomon, Ruth, irene ...
nuru mugambi
Good morning Gladys
Chat Admin
Good morning Nuru
nuru mugambi
Hi Admin ????
SOLOMON KARATHI
We are fine Nuru.
RUTH MAWEU
Hi Friends we are anxiously waiting...
JULIANA WANJIRU
Good morning Admin
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As we await the official start of the chat at 10am, please take some time to update your profiles and upload a profile picture. We'd like to know more about you
Chat Admin
Hi Gladys. Welcome to the chat:-)
Gladys Chepkonga
Thank You
nuru mugambi
I'm looking forward to the discussion on women in business
Chat Admin
Also , feel free to begin posting your comments and questions around this morning's topic (Banking Women in Business) so we can hit the ground running at 10am
dororthy korir
good morning
Chat Admin
Good morning Dorothy, welcome to the chat
Maureen Ochola
Good morning
MOSES CHESIRE
Good morning all
STEPHEN NJUGUNA
Good Morning all..
peter ndungu
Good morning
Chat Admin
Be sure to have a quick skim through the details page available at http://chat.kba.co.ke/index.php?r=chat/details&id=43 for some quick info and focus areas for today's topic
COLLINS OYARO
good morning and looking forward to the chat with Mr Mwangi Githaiga
Joyce Waweru
Good morning Mr. Mwangi, I'm glad to be able to interact with you today and ask some questions that I've been wondering about. How does your institution ensure that the clients living in rural areas benefit from banking products and services in the same way as those living in urban areas?
Conrad Karume
Good morning all
nuru mugambi
Hi conrad ????
Chat Admin
Good morning Conrad, Jack, Noel, glad you could join us
Miricho Dedan
Good morning
JANET NGISIREI
Good morning
Conrad Karume
Thanks Chat Admin looking forward to learn from the session
Chat Admin
Remember you can start sending in your comments and questions before we start at 10, so please feel free to begin posting
Chat Admin
Mary Eric and Cate, we are happy you could join the chat
RUTH MAWEU
Mr. Mwangi In this Rainy Season how is the Bank team able to reach the Rural Women where Matatus dont reach
Chat Admin
Ladies and gentlemen allow me to welcome Mr. Mwangi Githaiga CEO KWFT Bank Limited, to the chat to take us through today's topic of Banking Women in Business
Eric Muchoki
Good morning Mr. Githaiga, it's a pleasure to have you in this forum; What are the drivers of gender segmentation in banking and finance?
Mwangi Githaiga
Good morning everyone, we are happy to welcome you this morning to this chat.
Oscar Munene
Good morning Mr. Mwangi Githaiga, ladies and gentlemen. As a champion of financial inclusion among women how do u minimise the risk involved considering the little information available of their financial history.
Mwangi Githaiga
Today is a great day to engage and discuss about women financing, because women form a significant part of this country and it is necessary that they participate in all economic activities of this country.
Mwangi Githaiga
I am personally very happy to engage with you so that we can get the views as an industry on what are the needs of women as they participate in entrepreneurship in Kenya and beyond.
Webstar Ireri
Good morning Mr.Mwangi.Yes women are the majority shapers of our economy,starting from the mama mboga to those in managerial positions,its an essential discussion
Joyce Waweru
My other question is could you please explain some of the challenges you face when coming up with new products or revamping existing products to satisfy women entrepreneurs.
Mwangi Githaiga
Good morning Joyce Waweru, welcome, I see your question about rural access to finance
Mwangi Githaiga
The banking industry engages in rural areas through alternative delivery channels which are not brick and mortar, for example mobile banking, agency banking so that we can be able to reach the excluded communities at affordable costs. There are also other players in the market who organise rural groups so that they can be given joint financial support, similar to the chama model.
Caroline Toroitich
what are exclusive benefits your bank offers to women in business?
Joyrose Chebet
Goodmorning Mr. Githaiga, Congratulation, i saw on the media your bank won again the best micro finance bank, now my question to you is the culture impending access to financing to women enterprises?
Mwangi Githaiga
Hi Ruth...we thank God for giving us a raining season which we have been looking forward for! Of course this comes with communications challenges. The best way to keep engaging our clients is by transversing the country on motorbikes / boda bodas, using mobile banking and agency banking.
Noel Namunyak
Good Morning Mr. Githaiga, it’s great to have you on board. I am Noel and am a business lady. My question is what are some of the trends in banking in Kenya and are Kenyans embracing the trends?
george gichuki
Does KWFT Bank exclusively serve women Customers?
Mary Mwangi
Morning Mr.Mwangi, currently what is your bank doing to empower women business wise especially the ones living in the rural areas
Mwangi Githaiga
Thank you Erick for your question. Your question is very pertinent especially when we come to financial inclusion because the majority of Kenyans are financially excluded and most live in the rural areas. Majority of these financially excluded are women and so there is a need for financiers to take deliberate actions to give women an opportunity to be banked. A team that plays with half its players will definitely loose.
george gichuki
Why has the bank chosen to embrace the microfinance model despite its huge cost implications?
Steve Mwarumba
Good morning Mr Mwangi ,its a pleasure to have you in this forum.I would wish to know whether the devolved government system has affected banking and finance sector operations.
Mwangi Githaiga
Welcome Oscar. You raise the issue of financial literacy which is pertinent in this country and financial institutions are providing resources to be able to offer that most needed service of educating the banking public. Relationship banking goes a long way to ensure that individual issues are adequately addressed and that clients are well informed about the products.
Mwangi Githaiga
Thank you very much Webstar...that is very true.
Janet Njau
Morning Mr. Mwangi. I agree with the note on Inclusivity. Women now have many open opportunities especially on tenders since some are exclusively set aside for women. If there was a way the banking industry could include training to women on the available opportunities and the alternative access to finance,that would be very beneficial to them.
Mwangi Githaiga
Good morning Joyrose. Thank you for the compliment. We won the best micro finance bank courtesy of our clients who we are proud to serve.
Joyce Waweru
Finally, please expound on how technology has helped the banking sector satisfy its clients through its products and services.
george gichuki
From your experience in banking women, which attributes make them better in servicing their loans compared to men ?
MOSES MWANGI
good morning mr mwangi, we are glad to have you here, When i look at the banking sector, they are all embracing mobile banking and are using it to issue loans. In my opinion am seeing this as a cost effective way of issuing loans and mobilising savings. Is kwft planning to start issuing loans through mobile to reduce its operating costs n mobilise savings?
Mwangi Githaiga
Joyrose raises the issue around culture. This is very important because women do not have access to collateral mainly because of the traditional set ups of the African tradition. The challenge goes therefore to the financial institutions to recognise this limitation, and support the women to access finance as they continue playing a critical role in building the economy.
Steve Mwarumba
How has the current situation where banks have been put under receivership affected operations of other banks?
Mwangi Githaiga
Welcome Noel. I think the trend now is moving from brick and mortar to digital platforms. Making banking services more convenient and available real time is the driving force. Kenyans are responding very well to this trend and our customers are actually driving this process. And women have not been left behind.
COLLINS OYARO
Good morning Mr Mwangi. Research has indicated that women are good savers/managers when it come to finances applying their gift of nurturing children to see a business grow and yet they are still disadvantaged when it comes to access of funds to support the business due to requirements of collateral and high interest rates. As the leading microfinance institution in Kenya, how has KWFT turn this challenges faced by our women into opportunities for their growth?
Joyrose Chebet
Asante sana Bwana Githaiga, another question Sir, in your own view, do you think the less fortunate in the society should be given a special treatment by the banks when accessing financing? am a business woman would like to understand better the expectation..
Mwangi Githaiga
Good morning George. Thank you for your questions. KWFT serves the family, but has women as our entry point. We are in micro finance by choice because we believe that micro finance services and products are able to improve financial inclusion in this country because it focuses on the majority that is excluded from the financial sector. Indeed, micro finance is an expensive model, however, MFIs focus on the triple bottom line approach ie profitability, social impact, and environmental impact...so profit is not the only thing.
Oscar Munene
That's very great that you focus also on the triple bottom line, i think more financial institutions should focus on this to improve sustainability
Webstar Ireri
Mr.Mwangi,now the just flopped gender ammendment bill earlier in the month,what was the stand of your bank and do you think it could help in the development of women in business?Would the effects of the bill trickle down to the very small businesswoman in the slum somewhere?
Joyrose Chebet
Are there specific sectors that women excel in entrepreneurship?
benard maina
Good job you are doing.As youth i.e18-35 years are the majority and very innovative ,economically active etc what strategies you have to bring them on board
Noel Namunyak
Thank You Mr. Githaiga, also how has the banking institutions supported women entrepreneurs learn more about the banking regulations and changing policies in the sector?
Mwangi Githaiga
Hello Mary Mwangi, KWFT has a network of 241 offices / branches in 45 of 47 counties. This network is meant to give women an opportunity to access the services we offer. Through this delivery channel we offer training and mentorship programs. We also facilitate trade networks.
Jackline Ogero
Good Morning Mr Mwangi. What can the banking industry do to reduce the cost of credit to enable many women entrepreneurs have access to it..
Miricho Dedan
Good morning Mr. Mwangi Githaiga, I am greatfull for the work KWFT has been doing with rural women groups especially in my home area. My siblings have managed to pay school fees through loans provided by KWFT. I actually managed to convince most of them to acquire shares through CSOP two years ago. My question is when will the shares start trading at the OTC market
Joyrose Chebet
what is the comparative growth of women led enterprises, ? and finally What is the impact of economically empowered women in the country?
Eric Muchoki
How do banks ensure that spouses are involved when their partners apply for financing especially where collateral used is for both parties?
Mwangi Githaiga
Welcome Steve Mwarumba, the devolved government has offered Kenyans immense opportunities to get involved in their country's development. The banking sector has taken this seriously and is partnering with the county governments to take services down to the villages where initially there were no services. This is resulting to distribution of country wealth from the capital to mashinani.
GEORGE KINYANJUI
Good morning Mr. Mwangi, thankyou for allowing us to engage you on this forum. kindly elaborate how KWFT finances along the Agricultural value chain given women contribute alot to Agricultural development.
Mwangi Githaiga
I agree Ms. Njau that there are opportunities for women based on the 1/3 gender rule. Banks like KWFT are continuously working with women to develop products that support their participation in government tenders.
MUSYOKA JIMMY
Good morning Mr Mwangi, Deposit-taking microfinance institutions will now be required to hold cash with the Central Bank of Kenya (CBK) proportionate to their deposit base following a change of law, will this affect the cost borrowing in future?
Steve Mwarumba
Thank you Mr Mwangi, how has the changing economic and political environment affected the operations of the banking sector?
Mwangi Githaiga
Moses you are right that mobile loans and savings is a positive trend in the banking sector. We do offer some products on mobile banking. Please visit our web site for www.kwftbank.com.
Benson Kitabu
Good morning Mr Mwangi, mr Musyoka has raised a point on the holding of cash by Cbk do you
Mwangi Githaiga
Dear Collins...your comment is spot on! Thank you. KWFT offers women who do not have access to collateral the much needed credit using social support from their group members. This is a model that has successfully worked for micro finance institutions in Kenya and the world over for many years.
Mwangi Githaiga
Indeed Oscar. Thank you.
Benson Kitabu
think the government need to consider some reduced ratio considering thing is a fairly new industry under regulation
Caroline Toroitich
Morning Mr.Mwangi kindly help me understand the exclusive benefits women benefit from KWFT which other banks/MFI do not offer?
Mwangi Githaiga
Thank you Bernard. Youth make up about 60 per cent of this country and the banking sector needs to continuously focus on this core segment. The banking sector has innovative products for youth but there is still room for improvement. There is much more that can be done.
Steve Mwarumba
Banks finance women to start and expand their businesses, does the banking sector also support these women entrepreneurs to get market for their products and services?
Webstar Ireri
Benson Kitabu..that point on the deposits to be held by the CBK,I think its the right think to do,to straemline the banking sector all the way down the ladder in the interest of the individual depositor.I think as much as its a drastic and straneous thing to especially many micro banks,its a good thing.
Josephine Oyombe
Recently we have had challenges in the financial sector where we have seen banks collapse, including Imperial Bank & Chase Bank. How is KWFT prepared in terms of maintaining its financial stability considering the fact that smaller lenders are inevitably affected and the same would have a spill over effet on women economic empowerment?
Mwangi Githaiga
Jackline I believe the use of technology is an important lever we can use. For example through digital platforms we can minimise the cost of operations (including providing services and debt recovery). The other cost that drives up the cost of credit is the cost of money. Banks lend other peoples money which banks pick as deposits from the market. Based on the interest the bank pays the depositor, borrowers are charged a premium on the same. So when the cost of money (deposits) is high, the cost of credit also goes up.
Maureen Ochola
Good morning Mr. Mwangi, with the intensive use of CRB reports by banks, how can the banks use the reports positively to encourage customers with good CRB reports in future?
Mwangi Githaiga
Miricho karibu sana to this Chat! Indeed a lot has been achieved in terms of women economic empowerment in this country. And CSOP is one of the tools of women empowerment. The OTC is open please get in touch with your nearest branch.
Mwangi Githaiga
Eric based on the repealed Land Laws, spousal consent is mandatory for collateral clearance. Banks also require spouses to guarantee in the case of unsecured lending. These requirements are important because they help protect the family assets.
John Komu
Bwana Githaiga, how has the what impact has the entrance of new players like https://branch.co affected existing players in the micro-finance sector? and given that this new players are using your digital footprint to assess your ability to repay loans, in place of the traditional methods of collateral/ or guarantors, do you think they have an upper hand or are they just a passing cloud?
Conrad Karume
The 2016 FinAccess Household Survey indicates that the Formal Financial Inclusion/Access is at 35% for women compared to 50% to that of men. While this is an improvement from a mere 10% and 19% respectively in 2006, what policies are the government and the banking sector formulating to narrow this gap?
Mwangi Githaiga
George Kinyanjui raises the important role of women in the agricultural sector. The Agri sector is the backbone of our economy and indeed any country that cannot feed itself cannot be able to achieve economic development. Women are the drivers of agriculture especially at the subsistence level therefore interventions that focus resources in this direction are very critical. The banking sector in the past 5 years has increasingly provided support to the Agricultural sector, and across the whole value chain. Government has created an enabling environment for our sector to do so. There are various products, including insurance that are meant to minimise the risks associated with Agri finance.
Samuel Kungu
Mr. Mwangi. The emerging trends in mobile loans (mshwari, Kcb Mpesa, Equitel loans, Branch, Mkopo rahisi e.t.c. is a big wave that can't be ignored and equally a convinient way for customers to fix urgent small financial needs needless to say they are unsecured and repayable in a very short duration. Is Kwft thinking of developing similar products for their women since the same women keep borrowing the mobile loans from those offering?
Benson Kitabu
Kwft has big network in kenya, are there any plans to expand regional?
Mwangi Githaiga
Musyoka thank you for your question. Yes, MFIs are required to have cash reserves at the CBK which increases the cost of doing business for the MFIs and as a result raises the cost of credit.
Redemter Kiberi
Good morning Mr.Mwangi, the institution recognizes the role of women in national economic development and therefore the need for full optimization of women's economic potential. what are the options that KWFT is exploring to ensure this need is optimally met?
Noel Namunyak
What are some of the policies and regulations hurdles women face in access to funding?
Monica Mwakio
I echo the views of John Komu and Samuel Kungu...emerging trends on mobile loans can not be ignored.They have hit the market big time.Is KWFT embracing this trend?
Mwangi Githaiga
Josephine thank you for your question about the sector's stability. Overall, the Kenyan banking is stable and sound, and produces some of the best practices in finance across all of Africa. This perception that small banks are unstable is wrong and unfounded because the strength of any institution is in its governance and service delivery (not size).
GEORGE KINYANJUI
Mr. Mwangi, thank you for your response. I would also like to enquire how your organisation, especially being the biggest microfinance bank , contributes towards corporate social responsibility
Mwangi Githaiga
John Komu ...karibu... approximately 60 percent of Kenyans are not participating in main stream banking, so any new initiative improving this situation is completely welcome and has its space. Competition is healthy.
maurice ndege
through evaluation on CREDIT RATING being offered by a licensed rting agency we have been able to empower women and help them understand the lending dynamics in kenya as a bank that deals more with women welfare do you accept third party credit ratings as a way to empower women entreprenuers
Macharia Mathenge
Mr. Mwangi, KWFT BANK has been at the fore front of financial inclusion, what is the next big thing for the bank.
Joyrose Chebet
Thank you so much MR. Githaiga for your time.. we appreciate
Mwangi Githaiga
Noel we covered some of the hurdles that limit women to access capital, such as access, cultural issues, collateral and financial literacy. And all these areas have interventions currently under way.
benard maina
Thanks Mr.Mwangi.Just to add Youth are opinion shapers and with the level of unemployment we have the time is now.
Mwangi Githaiga
Yes Monica ... tuko pamoja ... KWFT is there.
SOLOMON KARATHI
Heko Mr. Mwangi Githaiga and the entire KWFT fratenity! We do recognize and appreciate the good work you are doing to lift the financial welfare of the women of this great country. Indeed you are a market leader. Keep up your spirit.
Mwangi Githaiga
Maurice the role of credit rating bureaus is important as they provide lenders with information that helps them make credit decisions.
Leah Kibe
Hi Mr. Mwangi Githaiga. Currently, every bank has rolled out agency banking where every Kenyan can access banking services at their reach and convenience. Has your organization been able to engage in this platform?
Mwangi Githaiga
Karibu Joyrose
Mwangi Githaiga
Solomon asante sana!
Mwangi Githaiga
Yes Leah...KWFT does have agents please visit our web site for more details
Monica Mwakio
Thank you for your response Mr.Mwangi.
Mwangi Githaiga
As we wrap up on today's Chat, Id like to share some thoughts
Peris Maina
Thank you Mr Mwangi .Congratulations to KWFT for leading as the best Microfinance in Kenya.Do you have plans to transform to a Commercial Bank
IRENE NJOGU
HONGERA BWANA MWANGI FOR GOOD JOB
Oscar Munene
Do you generate sustainability reports of your activities Mr. Mwangi.
Chat Admin
Ladies and gentlemen, our chat session is almost coming to a close. Mr. Mwangi will attempt to finalise and answer the next few questions in the next few minutes
Mwangi Githaiga
Looking forward, into the future. The banking sector will continuously focus on rural development with emphasis on the financially excluded people, majority of who are in the rural areas so the voice of women who are the main drivers of rural economies will remain top of the agenda.
Achieng Osogo
Hello Mr. Githaiga. I have attempted to reach you because I need your help collecting money from Robert Githaiga. He owes me from last year. Kindly asist, as I know you appreciate the value of money to a Micro Enterprise
kennedy chesire
women have potential in running business.they require financial training and mentorship to exploit their potentials
george gichuki
Thanks a lot Mr. Mwangi Githaiga for your time and very insightful answers. All the best to your great team!
Mwangi Githaiga
With the current interventions that are under way, such as the 1/3 rule and financial products targeting women, we also expect to see more businesses owned and operated by women.
STEPHEN NJUGUNA
Thank you Mr. Mwangi, the session has been informative and insightful
Mwangi Githaiga
As KWFT we promise women that we will continuously play our role of giving them access so that they can be financially empowered.
Achieng Osogo
Please help me. You understand the plight of womenin business better than anyone I know. I beg you...
Mwangi Githaiga
Thank you all for joining this Chat today. Im sorry we didnt get to all your points but I hope this session has been informative and helpful. I have enjoyed the points that have been raised which will form the basis of developing more interventions into the future.
Achieng Osogo
Sir, please help me as you sign off
Caroline Toroitich
Thanks too Mr.Mwangi for your time.Gooday
Mwangi Githaiga
Have a good weekend. Tujenge taifa letu.
Monica Mwakio
Long live KWFT!
Chat Admin
Ladies and gentlemen, join me in thanking Mr. Mwangi Githaiga for his time and insights on this important topic
Conrad Karume
Thanks Mr. Githaiga.
Joyce Waweru
Thanks for all the insightful information Mr. Githaiga
Chat Admin
We'd also like to thank you for your participation and insightful comments and contributions this morning
Oscar Munene
Thank you Mr. Mwangi for your time, i look forward to more of this kind of engagement and particularly interested in your sustainability efforts.
MOSES CHESIRE
Thank you Mr Mwangi
benard maina
BRAVO!
Madrine Muchangi
Thank you Mr Mwangi
jeremiah waema
Thanks Mr Mwangi for insight on the industry
GEORGE KINYANJUI
WELL DONE !
Maureen Ochola
Thank you Mr. Mwangi.
dororthy korir
SHUKRAN MR MWANGI
Steve Kerunda
Thank you Mr. Mwangi.
peter ndungu
Thank you Mr mwangi
KAMAU CHARLES
Well done Mr. Mwangi
Samuel Kareithi
SHUKRAN MR MWANGI
SAMWEL MWANGI
Thank you Mr. Mwangi.
Chat Admin
Kindly note you can get copies of the transcript and other related information from the Chat Archives page of the website
Gladys Chepkonga
We are very grateful Mr.Mwangi.
Macharia Mathenge
well done! thank you. you are a true captain of the industry
COLLINS OYARO
Thank you Mr Mwngi for your time this morning.
Chat Admin
Thanks once more, we look forward to meeting once again next same time. The topic will be Building Capacity of SMEs and the host will be Mr. Tim Gitonga CEO Equatorial Commercial Bank Limited
Chat Admin
We look forward to your participation
Chat Admin
Have a wonderful day and weekend
Aury Munene
Banks and real estate opportunities for young people
Chat Admin
Kindly note we shall close the chatroom in the next 10 minutes. Many thanks.
Aury Munene
Ok. Is there an opportunities to get a response on how banks are supporting young women real estate enterprenuers access funding
nuru mugambi
awesome session ????????????
Chat Admin
Thank you Nuru. ..@Aury, someone will be in touch with you to give you further information on this as the chat session is oficially closed for now