National Bank to Tap More Customers Through Its Newly Launched Small Enterprise Banking Unit

National Bank of Kenya has launched its Small Enterprise Banking Unit, a move that will see the bank accelerate its balance sheet growth while catering for the financial inclusivity requirements of small enterprises.

This follows the bank’s pledge of 2 Billion to support small enterprises across the country through the Kenya Bankers Association (KBA) Inuka Programme.

National Bank Managing Director and CEO Wilfred Musau said the Small Enterprise Banking Unit seeks to bank the unbanked in the majority of low-end Kenyans who are in business.

“We want to instill confidence in small enterprises who, with proper access to financial services, can boost job creation, increase households’ income and increase investments in human capital,” said Mr. Musau.

The new unit is set to target both the personal business and investment groups in the Retail Convectional and Amanah Business Segments.

In the past three years, National Bank has embarked on an aggressive drive to diversify its deposit and loan concentrations by tapping on the small and medium enterprise (SME) segment. According to the Kenya National Bureau of Statistics (KNBS), there are more than 17 million SMEs that are registered in Kenya, with 98 percent of them contributing to 25 percent of the country’s GDP and employing up to 50 percent of the workforce.

Some of the products launched today by National Bank under the Small Enterprise Banking Unit are the Jenga Chama, Jenga Kilimo and Jenga Biashara Plus loan accounts to fast-track its Small Enterprise banking outreach campaign.

Jenga Chama Loan is designed to avail financial solution to investment groups of three members and above that meet the groups’s specific needs and provide financial advice to the groups that suit the current business environment under Asset financing and capital expenditure. Jenga Kilimo n the other hand is a financial solution that promises smallholder farmers growth, diversification and consolidation of their farming business.

Mr.Musau said that this move was part of the bank living up to its founding objective of offering affordable financial services to all customers. Through a specially tailored Jenga Biashara Plus business loan, the bank will cater for the financial needs of enterprises that are seeking to expand their operations through both working capital and investment financing.

“We are looking at a massive and aggressive account opening campaign for our Small Enterprise Banking segment while at the same time becoming the go-to bank for the unbanked and low-end customers who are “the backbone of our economy,” said Mr.Musau.

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