Nairobi, Kenya — A Kenyan aid group is helping refugees improve their lives by providing affordable loans that will help finance their businesses. At least 13,000 refugees in exile have received loans.
Adelle Mubalama, a tailor at Kenya's Kakuma refugee camp, fled her home in the Democratic Republic of Congo in 2019. Mubalama said she abandoned her business selling clothing, and her efforts to get funds to begin a new trade in exile was futile.
"If you want to borrow money from the bank, they would ask you for statements and the Kenya Revenue Authority PIN number," she said, "which is very hard for us refugees to get."
Mubalama said her dream came alive when she was granted a loan from Inkomoko, an organization that helps to empower micro and small business entrepreneurs, including refugees in Africa. She now makes bags and sells fabrics in Kakuma.
After an assessment, Mubalama went through training for running a business. She then got a loan of 30,000 shillings, which she used to launch her business.
At least 13,000 refugees in Kenya have received loans from Inkomoko, which means "origin" in Nyarwanda.
But according to a 2024 World Bank report, despite the significant progress Kenya has made in developing a policy framework for refugees and host communities, refugees continue to face challenges in accessing services to improve their lives.
Inkomoko founder Julienne Oyler said entrepreneurs can access up to $50,000 and pay back at an interest rate of 10% annually - lower than what most banks charge, and without collateral.
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Oyler said that with the loans, many refugees see their skills and talents revived.
"The system that was established to support refugees is completely outdated, humanitarian funding is incredibly declining, while the number of displaced people is increasing," Oyler said. "What we see is that the old way of working isn't working. It's when we bring in private sector solutions into these communities that we actually start to see economic development."
The United Nations High Commissioner for Refugees reported that at the end of June 2024, 122.6 million people worldwide remained forcibly displaced due to disasters, persecution, conflicts, violence and human rights violations, among others. This represents an increase of 5%, or 5.3 million people, compared to the end of 2023.
International Organization of Migrants senior program manager Pravina Gurung told VOA that climate-induced disasters are adding to the growing numbers of displaced individuals and are destroying livelihoods.
"When people are on the move in search of safety and better livelihood opportunities, there is a risk of exploitation," Gurung said. "And without documentation, they cannot access any kind of services, including financial services. Also, they cannot access any type of assistance that is in existence."
Kenya hosts over 1 million international migrants, according to IOM, and nearly 800,000 registered refugees. Officials believe initiatives to help them access affordable financing will help improve their lives.
