KNCCI, Stanbic Bank sign deal to provide MSMEs financial aid

KNCCI, Stanbic Bank sign deal to provide MSMEs financial aid

Stanbic Bank Kenya and the Kenya National Chamber of Commerce and Industry (KNCCI) have signed a partnership to provide financial and non-financial support to Micro, Small and Medium Enterprises (MSMEs) that are members of KNCCI.

An MoU was signed at the Busia Youth Polytechnic Ground on the sidelines of the Lake Region Economic Block Private Sector Forum.

A panel dubbed Partnerships, Funding and Financing to SMEs, Saccos and MSMEs, was graced by the Cabinet Secretary in the Ministry of Agriculture, Peter Munya, Trade CS Betty Maina and Kakamega County Governor, Wycliffe Oparanya, among other dignitaries.

Commenting on the MoU with KNCCI, Stanbic Bank Kenya, Head of Business and Commercial Clients, Ms. Florence Wanja noted that the partnership agreement plays an important role in reinforcing the bank’s commitment to empowering MSMEs in the region and across the country.

“Stanbic Bank Kenya has continued to play a major role in our country’s economic development, and this is in line with our purpose which is to drive Kenya’s growth. As an institution, we remain committed to solving holistic needs of our SME client segment and partnering for sustainable growth. SMEs contribute more than 30% of Kenya’s Gross Domestic Product (GDP) and create close to 50% of new jobs every year,” said Stanbic Bank Kenya, Head of Business and Commercial Clients, Florence Wanja.

KNCCI Chairman, Busia County Mbogo Abungu said the institution is “focusing on building a vibrant and prosperous business community in the region and across the country. We remain committed to empowering our members in all possible ways. The agreement with Stanbic bank will ensure they have an array of solutions in their enterprises.

According to Wanja, Stanbic has been at the forefront in developing solutions to support MSMEs after the COVID-19 pandemic.

The lender restructured loans and issued moratoriums to our customers incorporating repayment holidays. Out of the restructured loans worth Ksh.40 billion, Ksh.3.1 billion went to SMEs.

Stanbic Bank has successfully issued loans worth Ksh.844million to women entrepreneurs through the DADA proposition.

The bank has also collaborated with the Ministry of Industrialization and Enterprise Development to launch the FutureNiDigital campaign that has successfully equipped 50,807 businesses and individuals with digital skills.

It has also partnered with the United States African Development Foundation (USADF) to provide small businesses with access to markets and affordable financing while exposing them to digital technologies through a joint Ksh.1 billion grant fund and have so far issued Ksh.33 million to MSMEs, cooperatives and producer groups in Kenya to help them grow their businesses.

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Lawrence Baraza is a prolific writer with competencies in Digital Media, Print, and Broadcast. Baraza is also a Communication Practitioner currently spearheading Digital content on Metropol TV's Digital Desk.

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