Kiva Capital Reflections on 2021
As we mark the close of 2021 and the completion of Kiva Capital Management (KCM)’s second full year of operation, we want to reflect on a year where, thanks to our many global partners, investees, and investors alike, KCM was able to scale our work beyond expectations. In 2021, Kiva, the parent organization of KCM, was able to contribute over $200M in loans toward ending financial exclusion globally–an all-time high in our 16-year history. Of this meaningful sum, vehicles managed or administered by KCM accounted for over $60M.
KCM’s contributions were manifested via three unique fund vehicles. The team continued to build upon the 2020 launch of two innovative COVID-response funds, the California Rebuilding Fund (of which KCM is the fund administrator) and the Small Business Resilience Fund (of which KCM is the manager). From Sacramento to Jakarta, and from Los Angeles to Lagos, KCM was able to steward low-cost capital to small businesses in critical need of capital during the ongoing pandemic. In March, KCM held a final close on the Kiva Refugee Investment Fund (of which KCM is the manager), delivering on Kiva’s longstanding commitment to continually scale our work in the world’s most fragile communities.
Of course, KCM’s deep impact would not be possible without our inspiring partners. One such investee is a microfinance institution operating in Kenya. ECLOF Kenya provides financial and non-financial services to micro-, small-, and medium-sized businesses in Kenya. ECLOF has been a partner of Kiva for over seven years, utilizing Kiva.org’s crowd-funded capital to develop new loan products, including critical higher-education loans and climate-smart financing products for dairy farmers. Earlier this year, KCM’s Small Business Resilience Fund provided ECLOF with a critical subordinated debt investment, which aims to strengthen the institution’s balance sheet, catalyze additional debt investors, and most importantly, allow ECLOF to expand its reach to tens of thousands of customers.
In 2022, we are looking forward to working with more partners like ECLOF and will continue striving to meet the needs of borrowers and investors alike. In addition to bolstering financial access to small businesses and to refugee communities through existing KCM funds, we are targeting gender equity as a central priority in 2022. Over this past year, with design funding support from USAID INVEST, Kiva Capital has built out a dedicated team and gender lens investing strategy under Managing Director Celia Wong to take Kiva’s 16-year history of delivering on Women’s Economic Empowerment to the next level.
With team members across the United States and now in Bogota, Nairobi, and Bangkok, KCM ends 2021 grateful to play our role in connecting Impact-first Investors with true development opportunities globally.