Kenya Commercial Bank signed a financing facility with retailer Tuskys Supermarkets that will see suppliers get payment before their invoices fall due.
KCB signed with the retailer nearly a month after Diamond Trust Bank (DTB) entered a partnership with the same chain of supermarkets. The partnerships will SMEs that supply the retailer, to get loans from both banks at preferential rates.
The new financing arrangement, dubbed Biashara Club, was launched a month ago and since then Tuskys says they have brought on board 100 SMEs, with a target of 600 by the end of the year.
Tuskys is the second largest retailer in the country by revenue, has more than 1,600 SME suppliers who deliver goods worth between Sh500,000 to Sh5 million every month.
Their focus on SMEs is to ensure that this small business venture continue to be a huge part in Kenya’s economic growth.
Article by Mercy Kariuki.