Kazakhstan: Proparco is supporting KMF, a microfinance institution very active in rural areas

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Client de l'institution de microfinance KMF
By allocating KMF a loan in local currency (Tenge kazakh) equivalent to USD 15m, Proparco is supporting a major microfinance player with a mainly rural client base
Client presentation

KMF is the country’s leading microfinance institution. It has over 240,000 borrowers and over 110 retail outlets located in 12 of the 14 regions in the country. KMF has an excellent reputation with its clients – it is client protection certified (Smart Campaign) – and mainly operates in rural areas (over 65% of its clients). KMF is recognized in the highly competitive microfinance segment in Kazakhstan for the range and quality of its products: the loan characteristics, the time it takes to appraise loan requests and its interest rates.

KMF mainly serves women, who account for over 55% of its clients, and has established an active policy for them. It organizes events (annual “Women in Business” conference) and promotes knowledge-sharing, the exchange of experience and network development (seminars and training for KMF’s women entrepreneur clients). Furthermore, 51% of its employees and 75% of its top management are women: KMF therefore meets most of the 2X Challenge criteria.

Project description

During the current Covid-19 crisis, Proparco’s support to KMF will allow this recognized microfinance institution to continue to promote its model focused on rural communities and women in a more difficult operational context.

Project impact

We estimate that PROPARCO’s financing will:

  • Provide specific support by Proparco for 120 direct jobs in the MFI out of a total of 2,250 direct jobs at KMF over the next 5 years, with 51% held by women;
  • Support 5,200 indirect jobs over the next 5 years, including 3,000 for women, among KMF’s 99,000 additional active clients by 2022;
  • Develop growth in KMF’s activity with Kazakh microentrepreneurs, with the allocation of 12,000 additional microcredits.

The operation qualifies under the 2X Challenge initiative as Proparco’s credit line is dedicated to an institution that fulfills most of the 2X criteria: 51% of the employees and 75% of the top management are women and KMF has an active policy for its women clients and women entrepreneurs.

Date of signature of the project
Financing tool
12 739 483 Euros
Amount of funding
KZT 6,420,750,000 loan, equivalent to USD 15m
Financing details