Kiva’s Refugee Investment Fund: Supporting displaced communities through financial inclusion

Tackling financial exclusion, Kiva as a Bright Spot has an innovative financial access approach, proving refugees are creditworthy while fostering self-reliance.

Refugees face significant barriers to accessing capital, which hinder their ability to start businesses, improve their livelihoods, and regain economic stability. Kiva addresses the financial exclusion faced by many refugees and displaced populations, who are often denied access to credit and perceived as too risky to serve by traditional banks.

In 2016, Kiva set out to address this misconception by using the unique, risk-tolerant capital of Kiva’s crowdfunding platform to pilot lending to refugees. Over the course of 5 years, Kiva mobilized more than $20 million in loans to over 15,000 displaced individuals with an average loan repayment rate of 96.39% - almost identical to those of non-refugee Kiva.org clients – demonstrating that refugees are viable candidates for financial service providers (FSPs). Kiva’s pilot project demonstrated that beyond crowdfunding, there is a business case to be made for refugees as an investable population, and institutional capital was needed to scale proven refugee lending further.

To satisfy the massive unmet demand for financial services from refugees & displaced populations, Kiva Capital, Kiva’s impact-first asset management subsidiary, launched the Kiva Refugee Investment Fund (KRIF) in 2021 to channel institutional capital toward refugee lending. KRIF, which successfully raised $32.5 million, is an impact fund that invests in financial inclusion opportunities for displaced populations across Latin and Central America, East Africa and the Middle East. Since the Fund launched in 2021, KRIF has deployed a total of $60 million to 23 microfinance institutions in 12 countries, reaching more than 84,000 refugees and displaced borrowers with financial services. The success and reach of KRIF to date challenges misconceptions about refugee creditworthiness by demonstrating that refugees can, and do, repay their loans– building an evidence base that continues to counter biased assumptions and perceived risks about refugees and displaced populations. KRIF’s data and strong track record tell a compelling story— one of resilience, economic opportunity, longer-term stability, and improved livelihoods. Ultimately, KRIF has enabled not only a transformation toward stability, community integration, and secure livelihoods for refugees through financial access, but also a transformation of the narrative around refugee lending and how displaced populations are perceived.

“With over 117 million people displaced globally, and projections suggesting that number could rise to 300 million by 2030, Kiva’s commitment to refugee financial inclusion is vital. By providing refugees with equitable access to capital, we not only empower individuals but also help uplift entire communities, fostering broader social justice and economic opportunity.”
- Lev Plaves, Investments Director, Kiva

How is Kiva’s Refugee Investment Fund different from mainstream approaches?

Access to finance is key for refugees as they move beyond humanitarian assistance and look to rebuild their lives, but most conventional financial institutions are unwilling to lend to displaced populations due to concerns over flight risk, lack of credit history, and presumed higher default rates. KRIF fills in this funding gap by investing in financial service providers (FSPs) in support of their lending to refugees, internally displaced populations, impacted host communities, and populations at risk of forced migration. KRIF’s investment and impact thesis shifts the narrative around refugees from being seen as liabilities to valuable contributors to their local economies, modeling a new and inclusionary way of creating value. Moreover, as FSPs see that lending in displaced communities is viable, they can grow their refugee client base and expand their services and geographic reach to support more displaced people or populations at risk of forced migration.

In addition to deploying investment capital through KRIF, Kiva also provides capacity building funding to refugee-serving FSPs to ensure their lending programs are well-designed, positioned to scale, and developed to best suit the needs of this community. Through targeted advisory services from Kiva staff and third-party organizations, capacity building efforts are developed in partnership with local FSPs, focusing on product and service development, staff training to ensure equitable treatment of refugee clients, and/or client protection management.

For example, a main challenge identified by refugees seeking financial services in Uganda was the lack of accessible branch facilities near their refugee settlement. In partnership with the Conrad N. Hilton Foundation, Kiva provided capacity building funding to KRIF investee UGAFODE to establish a sales center in the Kyangwali refugee settlement in Uganda in 2024. Now in operation, the sales center ensures refugees no longer need to travel 30 kilometers to a branch office, allowing UGAFODE to process loan applications, approval, and disbursement directly within the settlement. An additional investment from KRIF into UGAFODE provides the institution with the lending capital needed to scale lending in this new location.

^{Photo: Bayan, a Syrian refugee in Turkey, pursued her dream of completing high school and built her own business with the support of Kiva}

Why does Kiva’s Refugee Investment Fund matter?

The ultimate outcome of KRIF is to increase the livelihoods and economic stability of refugees, displaced populations, impacted host communities, and populations at risk of forced migration. By achieving this outcome, KRIF also transforms the narrative around how displaced populations are perceived, valued, and included in financial systems, making them more visible as a growing borrower market– especially as conflicts and climate-induced migration increase globally.

By 2028, Kiva aims to support 450,000 refugees and people impacted by forced migration. Loans enable refugees to start businesses in sectors like farming, food production, tailoring, and retail stores, contributing valuable services to their host communities and significantly improving their livelihoods. For example, Syrian refugees who accessed loans reported positive changes in their economic conditions, such as increased income and improvements to their social inclusion. These outcomes and KRIF’s success demonstrate that refugee lending is not only viable, but essential for global stability. This model challenges systemic barriers while fostering resilience in vulnerable communities, creating more opportunities for strengthening local economies even in the face of global uncertainty.

"To make a meaningful impact, we need investors and partners who are committed to supporting innovative solutions that provide refugees with access to capital. Together, we can help build resilient communities and ensure that displaced individuals have the resources they need to rebuild their lives, both for themselves and the generations to come."
- Lev Plaves, Investments Director, Kiva

What could the future look like if Kiva’s model scales/becomes the norm?

If Kiva’s approach becomes widespread, refugee financial inclusion could redefine global lending practices and strengthen both local and global economies. As most refugee crises are protracted in nature, refugees would more easily have access to formal financial services like loans and insurance, enabling them to rebuild their lives with dignity. Host communities would see enhanced economic development as refugees contribute through entrepreneurship and employment generation. The perception of refugees as liabilities would shift globally, fostering policies that prioritize their integration into financial systems.

Additionally, scalable impact-first funds like KRIF could attract more institutional investors, creating a robust ecosystem of refugee-focused investments that address systemic barriers while driving sustainable growth. The benefits of mainstream, refugee lens investing might also spillover and positively influence the perception of other “invisible” sectors, such as informal or migrant workers. Strengthening this approach will become crucial in the face of climate-induced migrations, with mass populations facing threats to permanent homes due to floods, fires, or heat.

Photo: Mbazimutima tends to the stock in the retail store he owns with his wife, Beata, in the Nakivale refugee settlement in Uganda. Image courtesy: Kiva

"At Kiva, we measure the success of our programs through a partnership with 60 Decibels, an independent assessment firm. Through surveys and interviews with loan recipients, we gain valuable insights into how loans impact borrowers' lives, including improvements in financial stability, confidence, and enhanced opportunities for growth. These metrics, alongside personal borrower stories, help us understand the real-world effects of our loans and guide our efforts to create lasting change in underserved communities."
- Barrett Redmond, Impact Investments, Kiva

Questions to consider

How can traditional financial institutions overcome biases against lending to displaced populations?

What role does impact investing play in addressing systemic barriers faced by refugees?

How might economic inclusion reshape global perceptions of migration and displacement?

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