SMEs set to benefit from Ksh.600 million credit from SwedFund
By Daisy Okanga | The Swedish Development Finance Institution, (Swedfund) through Platcorp has issued a loan worth Ksh.600 Million to Small Medium Enterprises (SMEs), a financial in part of Kenya, Uganda and Tanzania.
Platcorp is a leading provider of SME financing and payroll lending in East Africa. This is the second loan from Swedfund to Platcorp, with the first loan issued in 2018.
Platcorp has a loan portfolio across the three countries of $160million (Ksh17 billion). In 2019 Platcorp disbursed approximately 826,000 loans to its clients, according to reports in a local daily.
“A growing SME sector is instrumental to reduce poverty in East Africa and access to financing is a major growth constraint for many companies in the region,” said Maria Hakansson, CEO, Swedfund as reported by the Business Daily.
Platcorp is a Kenya-based microfinance venture.
The Central Bank of Kenya (CBK) cut its base lending rate in four months to April, to increase credit to private sectors as some are struggling to remain afloat since the outbreak of coronavirus.
According to the International Finance Cooperation (IFC), most formal jobs in emerging markets are created by small and medium-sized enterprises (SMEs).