KCB Enters In A Kshs 1 Billion SME Guarantee Deal With Sweden

KCB Bank Kenya and Swedish International Development Cooperation Agency (SIDA) have rolled out a Kshs. 1 Billion guarantee scheme that will go towards de-risking SMEs in their efforts to access credit and support their growth ambitions.

The 7-year guarantee facility will enable the bank to strengthen its commitment to financing Small and Medium-Sized Enterprises (SMEs) which continue to experience challenges, especially with access to affordable credit.

Read Also: The Harsh Reality of Entrepreneurship: Why Success Hugs You In Private And Failure Slaps You In Public

Speaking during the signing ceremony, KCB Bank Acting Director of Retail Banking, Michael Kung’u noted that the new instrument will provide much-needed momentum for SMEs to tap into the bank’s expanded portfolio of SME financing options to enable them to contribute fully to the growth of Kenya’s economy.

Read More:

• Overcoming Challenges: The Key To Success In Entrepreneurship
• The Changing Landscape of Entrepreneurship: 10 Key Conversations Shaping The Future
• The Pitfalls Of Taking Shortcuts In Entrepreneurship: The Value Of Integrity and Ethics

“We are excited about this new instrument as it offers us the flexibility to work with SMEs and the refugee population in their ambitions to support their entrepreneurial journey. The SME guarantee will therefore go a long way in diversifying the SMEs’ financing resources and reducing collateral requirements, thereby enabling them to play a leading role in achieving economic and social development,” Mr. Kung’u said.

Risk-sharing facilities are a key tool to support knowledge gaps by lenders, broadening their SME lending while mitigating risk and allowing them to build capabilities and track records in serving niche market segments like SMEs and refugees.

Read Also: 20 Ways Of Building Real Wealth: Your Guide To Success In Entrepreneurship And Investments

“Sweden’s Development Cooperation through the Swedish International Development Cooperation Agency (Sida) aims to create opportunities for better living conditions for people living in poverty and under oppression. This initiative will enable Sweden’s engagement to go beyond the Official Development Assistance (ODA) and focus more on innovative financing approaches to mobilize domestic resources and external private capital to reach the most vulnerable communities in Kenya”, Caroline Vicini, Swedish Ambassador to Kenya said.

The partnership demonstrates the bank’s commitment to SMEs by offering practical and attractive ways for SMEs to access the capital they need to help them grow and prosper.

Read Also: Entrepreneurship: There Is No Such Thing As A Stress-Free Day