Co-op MSME Solutions Steps in to Cater for the Needs of Businesses

Micro, Small and Medium Enterprises (MSMEs) have been recognized by multilateral organizations, development agencies and Governments across the World as a key enabler of economic growth and development.

In many advanced nations, MSMEs represent a core pillar of the economy and play the most significant role in driving sectoral competitiveness, business innovation, and wealth creation.

The MSME sector in Kenya has over the years been recognized for its role in the provision of goods and services, enhancing competition, fostering innovation, generating employment and in effect, alleviation of poverty.

The crucial role of MSMEs is underscored in Kenya’s Vision 2030 – the development blueprint which seeks to transform Kenya into an industrialized middle-income country, providing a high-quality life to all its citizens by the year 2030.

The sector has been identified and prioritized as a key growth driver for the achievement of the development blueprint.

The Kenya National Bureau of Statistics (KNBS) released a comprehensive ‘MSME Survey’ in 2016, which estimated the value of the MSME’s output at 3,371.7 billion shillings against a national output of 9,971.4 shillings representing a contribution of 33.8 percent in 2015.

In terms of gross value added, the report noted that MSME’s were estimated to have contributed 1,780.0 billion shillings compared to 5,668.2 billion shillings for the whole economy. Manufacturing ranked the highest by contributing 24.3 percent of the MSME’s gross value added. Wholesale and retail trade, Transport and storage, and Education services also ranked high by contributing 22.8, 15.4 and 7.3 percent, respectively to the gross value added. Unlicensed establishments contributed 10.4 percent of the MSME’s gross value added.

With such statistics in place brought about by MSME, the Co-operative Bank of Kenya (Co-op Bank) took upon itself as a financial institution to help boost Kenyan businesses.

According to the bank, the backbone of the Kenyan economy is dependent on MSME businesses and thus business people need to take advantage of their daily banking to access the new Co-op Bank MSME solutions tailored to scale up their businesses to the next level.

The Co-op MSME Solutions offers the following to businesses:

• Co-op Bank MSME Current Account

This is a current account that comes with packages that suit your business needs. They have solutions for all business needs in their growth life-cycle.

• Co-op Bank MSME Overdraft

This is an arrangement that allows a business to withdraw from their current account beyond zero to a limit prior agreed with the bank. This allows flexibility to settle bills before payments of work done. The limit is available for a maximum of 12 months and renewable subject to performance.

• Co-op Bank MSME Term Loan

This is money you can borrow for your business for a period of time to help your business expand or to raise business supply capabilities. The amount can be repaid in up to 60 months based on your level of business and the type of security you provide to us.

• Co-op Bank MSME Insurance

This will protect your business from any financial loss. The business will be covered on a lump sum premium based on the risks that your business may face. The packages available comprise of SME Cover, Personal Accident Cover, and Micro Cover.