4G Capital Lands IFC Risk-Sharing Guarantee to Unlock Sh5.8bn in MSME Lending

4G Capital has partnered with the International Finance Corporation (IFC) under a new risk-sharing facility designed to expand credit access for underserved micro, small, and medium enterprises in Kenya. The IFC investment consists of up to $6.2 million (Sh803.5 million) in an unfunded risk-sharing facility, structured as a financial guarantee, to support 4G Capital's MSME lending for a total loan portfolio of about $44.4 million (Sh5.8 billion) equivalent in Kenyan Shillings. A second-loss tranche of $42.2 million (Sh5.5 billion) will be shared between IFC and 4G Capital on a pari passu basis, with IFC's exposure capped at $4.2 million (Sh543 million) and the remainder borne by 4G. By taking on the earliest losses in the portfolio and sharing subsequent risk with 4G Capital, IFC aims to reduce the downside exposure that typically discourages lenders from serving informal and thin-file borrowers. IFC expects the guarantee to mobilize a minimum of 21 times its own exposure in MSME lending, potentially unlocking tens of millions of dollars in additional credit for small businesses across Kenya over time. 4G Capital has disbursed more than $1 billion in loans since its establishment in 2013, completing 7.6 million transactions for more than 791,941 entrepreneurs across Kenya and Uganda.