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4G Capital, a FinTech lender in Kenya, has teamed up with the International Finance Corporation (IFC) to support micro and small businesses, especially those owned by women, through its Catalytic First Loss Guarantee (CFLG) programme.
IFC (a member of the World Bank Group) is the largest global development institution focused on the private sector in emerging markets.
In fiscal year 2025, IFC committed a record $71.7 billion to private companies and financial institutions in developing countries.
“Small businesses are the backbone of Kenya’s economy, creating jobs, generating income, and driving innovation in communities across the country. Through these partnerships, IFC is helping expand access to finance for entrepreneurs who have traditionally been underserved by the financial system. By sharing risk through the Catalytic First Loss Guarantee Program, we are unlocking capital that can help businesses grow, strengthen their resilience, and contribute to more inclusive and sustainable economic growth,” said Mary Porter Peschka, IFC Division Director for Eastern Africa.
The 4G Capital deal is part of IFC’s first batch of CFLG transactions in Africa, alongside Equity Bank Kenya and KCB Bank Kenya.
Across the three transactions, IFC has committed $24.2 million, backed by $11 million from the International Development Association’s Private Sector Window.
Together, the three deals are expected to unlock approximately $144.4 million in local currency lending towards microenterprises, women-owned businesses, and climate-focused enterprises, helping drive inclusive growth and job creation across the country.
The transactions aim to generate about $120.2 million in extra funding for micro, small, and medium enterprises (MSMEs). This means that for every dollar invested in first-loss capital, around $11 will be available for small business financing.
“We are delighted to receive this support from the IFC. The biggest challenge for micro and small businesses is access to working capital, particularly for women-owned enterprises. This facility provides us with the ability to reach and impact more underserved business owners and support their growth, which is vital to their local communities,” said Julian Mitchell, CEO of 4G Capital.
The CFLG programme, delivered under IFC’s $4 billion MSME Platform, uses blended finance to share risk with partner financial institutions and encourage them to lend to segments they might otherwise consider too risky.
Besides financing, IFC will work with partner institutions to help them support small and medium-sized enterprises (MSMEs) and provide better access to sustainable financing, promoting innovation and inclusive growth in Kenya.
The partnership comes a month after announcing a major milestone: more than $1 billion in loans disbursed to entrepreneurs across Kenya and Uganda.
Since its founding, 4G Capital has disbursed more than $1 billion in loans, supporting over 781,000 customers with 7.5 million short-term loans across Kenya and Uganda.
The company operates through more than 1,600 field agents across 211 branches and says its work has created 1.4 million indirect jobs and delivered more than $3 billion in economic impact.
