Kefta

Kefeta Microfinance Institution S.C (KMFI) is an emerging financial services provider in Ethiopia, officially licensed by the National Bank of Ethiopia on January 22, 2024. The institution operates with a clear mission to foster financial inclusion and empowerment, particularly for the nation's youth.

KMFI is a key component of the broader 'Kefeta' initiative, a comprehensive youth development program funded by USAID. This connection provides a substantial foundation and a direct channel to its target demographic of young entrepreneurs and individuals aged 15-29. The microfinance institution was established to address a critical challenge for youth: access to finance. It operates as a youth-led, youth-managed, and youth-owned Savings and Credit Cooperative (SACCO), aiming to provide financial solutions that are more accessible and tailored than those at traditional banks.

The business model centers on mobilizing savings and providing affordable credit and loan products. These services are designed to support young people in starting businesses, investing in their education, or managing personal financial needs, thereby stimulating economic well-being. Revenue is generated through interest on loans and other financial service fees. The institution places a strong emphasis on a client-centric approach, utilizing modern technology to deliver its services. The current Chief Executive Officer, Moges Tamene Assefa, brings a wealth of experience from the microfinance and education sectors to his role. Under his leadership, KMFI operates branches in Addis Ababa and has expanded to several other cities including Adama, Hawassa, and Wolkitie.

Keywords: microfinance, financial services, youth empowerment, Ethiopia, SACCO, credit cooperative, savings mobilization, youth finance, emerging markets finance, social enterprise, economic development, USAID Kefeta, financial inclusion, startup capital, small business loans, entrepreneurship finance, Addis Ababa, Moges Tamene Assefa, youth-led business