Refugees urged to embrace financial services to boost economic independence

Refugees and host communities in Kenya have been encouraged to leverage inclusive financial services as a pathway to economic independence and stronger livelihoods.

The call was made during a joint Iftar dinner held in Nairobi, which brought together refugee entrepreneurs, government officials, development partners, and private sector stakeholders.

The gathering provided a platform to explore ways of expanding economic opportunities for displaced persons, with a focus on strengthening partnerships that support refugee-led businesses and promote economic inclusion for both refugees and host communities.

Speaking at the event, Margaret Mengo, Managing Director of Inkomoko Kenya, emphasised the need to change perceptions around refugees’ ability to access and manage financial services. She noted that refugees have consistently demonstrated strong repayment records in business financing programs and called for greater collaboration among stakeholders to unlock their economic potential.

"We are coming out to tell the world that refugees are actually bankable. Some of the best payers in our portfolio are refugees. However, more outreach and sensitisation are still required. This work cannot be done by one organisation alone. It requires all actors within the ecosystem to come together and ensure refugees can thrive despite the challenges they face," said Mengo.

Stakeholders also highlighted the importance of formal financial systems in helping refugees and host communities grow their businesses and protect their savings. Hemed Wangalwa, Head of Sahl Banking at KCB, explained that many still rely on informal saving methods due to concerns about interest-based banking.

"Some refugees and host community members practice what we call mattress banking, keeping money at home for fear that it may mix with conventional funds and earn interest. As a result, they do not maintain business records and cannot qualify for loans.

When disasters such as floods, fires, or theft occur, they risk losing all their savings," said Wangalwa. He added that digital financial services and modern banking solutions can improve financial security, build business records, and enhance livelihoods.

The joint Iftar initiative underscores ongoing efforts to promote financial inclusion and economic empowerment among refugees and host communities, while strengthening partnerships that support sustainable development and self-reliance.