Category Archives: News

Nyumba Smart: Tanzanian financial institutions benchmark KWFT’s housing finance model

Tanzanian financial institutions visited  KWFT to study our Nyumba Smart housing finance model and how affordable financing can help low-income households build and improve their homes in stages which provided the institutions with an opportunity to examine a housing finance model designed around the way many low-income households actually build their homes – one stage at a time.

The delegation, led by Hellen Waigwa, Manager, Housing Finance Systems at Habitat for Humanity International (HFHI), included representatives from Tanzania Mortgage Refinance Company (TMRC), Tanzania Institute of Bankers (TIOB), NMB Bank Tanzania and CRDB Bank PLC.

The group visited KWFT before travelling to Machakos County to see firsthand how Nyumba Smart is helping families improve their homes, including visiting customers who have used the financing to fund different stages of construction.

Financing a home in stages

Nyumba Smart was developed for customers who may not have the income, collateral or financial capacity to take on conventional mortgage finance.

Instead of requiring a household to finance an entire house through one large loan, the model allows customers to borrow for specific improvements as their needs and finances allow.

This can include putting up walls, replacing a roof, adding a room, improving floors or completing other construction work. Financing can cover different stages, from foundations and walls to roofing and finishing.

The approach is consistent with findings from a study on systemic barriers to housing finance in Kenya, which found that many households build gradually using savings or microloans. The study put the average construction period at 3.3 years and identified high building costs, documentation requirements, limited collateral and irregular incomes as some of the barriers to conventional housing finance.

Nyumba Smart therefore starts with the customer’s housing need.

KWFT assesses the proposed work, its estimated cost and the customer’s ability to repay, taking into account cash flow, savings and existing financial commitments.

The model also uses approaches suited to customers with informal incomes, including cash-flow-based lending, community-based distribution, social guarantees and other forms of collateral. It also has a strong focus on women-led households.

The result is financing that follows the customer’s housing journey rather than requiring the entire project to be completed at once.

Beyond construction

The Nyumba Smart portfolio has also broadened the scope of what can support better housing conditions.

Financing can cover areas such as water, sanitation and hygiene, lighting, cooking facilities and clean energy, alongside construction, renovation and incremental building.

This recognises that improving a family’s home is not limited to putting up a new structure. Access to safer sanitation, better cooking facilities, reliable lighting and cleaner energy can also improve living conditions.

A model built around affordability

The sustainability of housing microfinance depends on more than the number of loans issued. Customers need financing they can manage, while lenders need to maintain a healthy and sustainable portfolio.

KWFT’s experience has centred on balancing these needs through appropriate loan sizes, flexible repayment arrangements and assessment of repayment capacity based on cash flow.

This is supported by customer eligibility processes, risk management, pricing and systems that enable the loans to be delivered efficiently.

By December 2024, Nyumba Smart had issued more than 100,000 housing loans, serving more than 83,000 customers. The portfolio has a performance rate of 98 per cent.

The scale of the programme provides a practical example of how housing finance can be structured for households that are not well served by conventional mortgages.

Lessons for financial institutions

For the Tanzanian institutions, the benchmarking visit offered an opportunity to look beyond the loan product and examine the systems that support its delivery.

These include understanding customer needs, breaking construction into manageable stages, training field staff, using technology and working with partners across the housing sector.

The latest visit builds on a first benchmarking visit by Tanzanian financial institutions to KWFT in 2024, reflecting growing regional interest in approaches that can extend housing finance to households underserved by conventional mortgage lending.

KWFT REOPENS ITS NANYUKI BRANCH

KWFT has reopened its Nanyuki branch, strengthening our presence in the Mt Kenya region and expanding access to financial services for women, entrepreneurs, farmers and households across Laikipia County.

This relocation means more convenient, accessible banking for our customers in Nanyuki and neighbouring areas, and reinforces our national network of 190 branches and 125 independent agents across 45 counties. In Laikipia County alone, we serve over 250 women groups, alongside individual entrepreneurs, farmers and salaried professionals.

The celebrations kicked off with Laikipia Governor Joshua Irungu flagging off our roadshow from his office, ahead of a day that saw hundreds of customers turn up to celebrate with us at the branch.

From financing agriculture and MSMEs to supporting education, energy, water and sanitation projects, our Nanyuki branch continues to walk alongside the community, helping build resilience, strengthen livelihoods and drive Laikipia’s economic growth.

KWFT HOSTS WATER.ORG VICE PRESIDENT- ROCIO CAVAZOS

On 26^th March 2026, we were delighted to host Rocio Cavazos Vice President, Africa & Latin America at Water.org alongside the Water.orgEast Africa team. The visit, was hosted by our Managing Director Rose Muyanga together with the bank’s Senior Management Team.

The meeting reaffirmed our strong partnership in scaling WASH financing, unlocking access to safe water and sanitation while empowering women and their families.

KWFT and Water.org are advancing innovative and sustainable solutions that embed Environmental, Social and Governance (ESG) principles, improve livelihoods and accelerate progress toward SDG6: Universal access to safe water and sanitation by 2030.

KWFT MARKS INTERNATIONAL DAY OF FORESTS 2026

As the world marked the International Day of Forests on 21st March 2026 under the theme “Forests and Economies,” KWFT joined stakeholders across the country to reaffirm the vital role forests play in supporting livelihoods, enhancing climate resilience and environmental conservation, strengthening local economies and driving sustainable growth.

Across multiple regions, KWFT staff, led by their respective Regional Managers participated in tree planting activities alongside community members, administrative leaders, schools, educators, and partners, including the Kenya Forest Service. Approximately 15,000 trees were planted, with plans underway to expand the initiative further, reinforcing KWFT’s commitment to environmental stewardship and climate resilience under the KWFT ESG Framework.

The tree planting efforts focused on indigenous species and fruit trees, supporting ecosystem restoration while contributing to improved farm productivity, food security and water conservation. Beyond conservation, the activities underscored the important link between forests and economic empowerment at the community level.

As KWFT marked the International Day of Forests 2026, the institution reaffirmed its commitment to sustainable development that balances environmental responsibility with inclusive economic growth, working in partnership with communities to safeguard natural resources for future generations.

GIVE TO GAIN: EMPOWERING WOMEN, STRENGTHENING COMMUNITIES

International Women’s Day offers an opportunity to reflect on the progress made in advancing women’s economic empowerment and the work that still lies ahead. The 2026 theme, “Give to Gain,” highlights an important truth: when women have access to opportunity, the benefits extend far beyond individuals.

This belief has guided KWFT’s journey for decades. Our work recognizes women as entrepreneurs, caregivers and important contributors to economic activity within their communities. Through tailored financial solutions, savings opportunities, insurance support and financial literacy, KWFT continues to support women as they grow businesses, strengthen household stability and plan for the future.

Over the years, these efforts have helped many women turn small enterprises into sustainable livelihoods while opening new possibilities for their families.

As we commemorate International Women’s Day, we also recognize the women who help drive this mission forward. From the dedicated staff serving communities across the country, to the partners who collaborate with us to expand opportunity and the women entrepreneurs whose resilience inspires our work, each plays an important role in this journey.

Through its work expanding financial inclusion and supporting women entrepreneurs, KWFT continues to contribute to broader global development priorities that advance gender equality and promote inclusive economic growth.

As we celebrate this day, KWFT remains committed to walking alongside women, supporting their ambitions, strengthening their enterprises and contributing to more resilient communities.