United Bank of Africa (UBA) has committed Ksh.37.5 billion ($285 million) to its Kenyan subsidiary, UBA Bank Kenya, to support local businesses, particularly small and medium-sized enterprises (SMEs).
This initiative is set to expand UBA’s loan portfolio and diversify its services beyond corporate lending.
UBA Bank Kenya announced its disbursement plan, which includes $57 million (Ksh.7.5 billion) in the first year, $91.2 million (Ksh.11.9 billion) in the second year, and $136.8 million (Ksh.17.9 billion) in the third year.
Mary Mulili, CEO of UBA Kenya termed the move as part of the lender’s commitment in addressing the financing and market access challenges faced by SMEs, which are crucial to Kenya’s economy and employ over 90% of the labor force.
“We remain committed to supporting SMEs and we recognize the financing and market access gaps which we are stepping into the bridge,” said Mary Mulili, CEO of UBA Kenya.
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UBA Kenya’s loan book has grown by 42% to Ksh.4.06 billion from Ksh.2.86 billion, reflecting the bank’s expanding influence in the SME sector.
This funding is part of a larger $6 billion (Ksh.789 billion) SME financing agreement that UBA signed with the African Free Trade Area (AfCFTA).
The agreement, announced at the 30th Afreximbank Annual Meeting in Accra, Ghana, aims to support eligible SMEs across Africa over the next three years.
The partnership between UBA and AfCFTA will focus on promoting SMEs in four key sectors such as agro-processing, automotive, pharmaceuticals, and transport and logistics.
These sectors, which are largely import-dependent, will receive technical and financial solutions to foster intra-African trade and domestic alternatives.
