Equity Bank’s Commitment To Supporting SMEs In Unmatched

Kenya’s economy thrives on the wheels of small and medium enterprises (SMEs). There is no doubt about this. The SME sector employs about 86 percent of Kenya’s population and contributes about 45 percent to the country’s gross domestic product (GDP).

Despite the amazing importance of the SME sector, it still faces many challenges that have threatened to kill millions of them. Stats from the Kenya National Bureau of Statistics (KNBS) indicated that in 5 years, at least 2.2 million SMEs had shut down their businesses in Kenya.

The Cabinet Secretary for Co-operatives, Micro, Small and Medium Enterprises, Simon Chelugui, while at the Changamka Shopping Festival by the Kenya Association of Manufacturers, expressed fears at the rate at which SMEs are collapsing in Kenya. He called on financial institutions to help and arrest the situation.

The advent of COVID-19 hit SMEs in Kenya even harder. Thousands of them collapsed. It said that at least 2 million Kenyans working within the SME sector lost their jobs during the height of the COVID-19 pandemic. Some have never recovered.

During that time, businesses and individuals looked for a financial institution that could hold their hand, understand them, and support them. Equity Bank Kenya came up demonstrated a strong commitment to supporting Small and Medium-sized Enterprises (SMEs), not just during COVID-19 time, but before, and even after, playing a pivotal role in fostering economic recovery and resilience in the region.

There is no doubt that Equity Bank responded swiftly to the challenges posed by the COVID-19 pandemic, setting the pace for other players within the same domain. In 2021, the International Finance Corporation (IFC) announced a $50 million loan to Equity Bank, specifically aimed at supporting Kenyan SMEs during the pandemic. This initiative provided crucial financial assistance to hundreds of Kenyan SMEs, making them survive and wade through challenges to date.

What is more, Equity Bank has continuously strengthened its support for SMEs by signing the US $100 million equivalent of an 11 billion shillings credit facility with leading European development banks. This credit facility further emphasizes Equity Bank’s dedication to providing substantial financial resources to empower SMEs in Kenya. The bank is the only one that sets some of the most accommodative terms for Kenyan SMEs to access this credit facility.

When it comes to supporting SMEs, Equity Bank’s efforts have not gone unnoticed. The bank has been recognized as Africa’s SME Financier of the Year at the 2023 Global SME Finance Awards, showcasing its excellence in championing sustainable finance initiatives for the region’s recovery and resilience. This isn’t the first time Equity Bank has received accolades for its support of SMEs. In 2021, the bank was named Africa’s Best Bank for SMEs at the Euromoney Awards, highlighting its consistent dedication to fostering a supportive environment for small businesses.

Equity Bank Kenya stands out as a key player in uplifting SMEs, providing not just financial assistance but also earning recognition for its unwavering commitment to the growth and sustainability of small businesses in the region.

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