Stanbic Bank Kenya has secured a Ksh.1 billion loan from the African Guarantee Fund to finance Small & Medium-sized Enterprises across the country for the next five years.
The credit facility will expand the bank’s lending capacity in the country to cover SMEs.
…our partnership with the African Guarantee Fund is a significant milestone in contributing to accelerating their growth. As a bank, we are constantly looking for ways to contribute to the growth and development of the country through partnerships in line with our purpose, Kenya is our home, we drive growth,” said the Head of Business and Commercial Clients at Stanbic Bank Kenya, Florence Wanja.
“Stanbic Bank and indeed Standard Bank Group remains committed to solving the holistic needs of our SME client segment and partnering for sustainable growth.
SMEs in Kenya contributes more than 30 percent of Kenya’s Gross Domestic Product (GDP), and close to 50 percent of new jobs created annually.
The financing deal targets women-owned businesses, as well as those in the sustainable energy sector.
Inside the deal, AGF will offer technical capacity building to these SME groups for the next five years.
“Many Kenyan SMEs struggle to access financing due to their perceived higher risk, which has further deteriorated during the COVID-19 pandemic. Reducing this risk will help these businesses access the financing required for growth. We are pleased to partner with Stanbic Bank as it expands its lending to SMEs including Women-led and climate-focused SMEs,” said AGF Group Director of Business Development, Franck Adjagba.
Stanbic bank’s investments in financial inclusion are underpinned by the bank’s purpose of driving the country’s economic growth and are further aligned to Social, Economic and Environmental (SEE) impact areas.
The bank has supported and empowered women consistently through the DADA proposition which provides women with financial and non-financial support.