20100405
ALLAFRICA

Nairobi — The growing importance of Kenya as a microfinance hub takes centrestage this week with Nairobi hosting the second Africa-Middle East Micro Credit Summit.

It is because of the steady growth of microfinancing that Kenya is hosting this major event that brings to town pioneers in this type of banking and business people from all over the world.

Micro finance has evolved into a global movement and is considered a Millennium Development Goal that seeks to put more than 100 million people under some form of financial support.

Today, the business community is running away from profit-hungry commercial banks that charge exorbitant interest rates on their loans to microfinancing institutions.

Since 1997, the microloans have grown from serving 7.6 million of the world's poorest families to more than 100 million in 2007.

The four-day event, beginning Tuesday, whose theme is "Committed to Ending Poverty," brings together governments, regulators, investors, donors and micro finance practitioners from 40 countries to discuss the role of financial services in poverty alleviation.

Visitors

Kenya has increasingly become a centre of learning, with the Equity Bank model being one of the most cited cases of success in availing financing to the poor.

Both local and international universities are visiting Kenya in general, and the bank in particular, to study.

Last month, the bank hosted more than 30 students from the Columbia University, who were on a study tour of the financial institution.

Unknown to many, the success of micro lending in Kenya has created another attraction for the country, known for its flowers, athletes, animals and beautiful beaches.

"It is wonderful that the summit has come at a time we are still celebrating our gold rush at the Poland Marathon because the world is giving the country double attention," Equity Bank chief executive officer James Mwangi said.