How NCBA Is Driving Value-Chain Financing In Kenya

Kenya’s manufacturing sector has long been touted as a cornerstone for economic transformation. Despite its potential, it continues to punch below its weight, contributing just 7.3 percent to GDP, far short of the government’s Vision 2030 target of 20 percent.

To bridge this gap, one thing is clear: financing must evolve from transactional lending into ecosystem-based solutions that unlock growth across the entire value chain.

This is the direction NCBA is taking, through its partnership with entities such as the Kenya Association of Manufacturers (KAM) under the theme “Unlocking Growth in Manufacturing through Value Chain Financing.”

As NCBA Group Director for Corporate and Investment Banking Advisory, Tirus Mwithiga, aptly put it, the bank’s goal is to become a true enabler of business transformation for manufacturers.

Indeed, NCBA is rethinking how capital is structured and delivered, moving away from financing single points of production toward a holistic approach that funds entire value chains. Whether it is the farmer supplying raw materials, the aggregator consolidating produce, the transporter moving goods, or the final processor and manufacturer, NCBA’s approach ensures that each link in the chain is bankable.

This is crucial because fragmented financing often weakens the sector’s competitiveness, limiting growth and leaving businesses exposed to liquidity shocks. By contrast, value-chain financing creates continuity, stability, and resilience, qualities the sector sorely needs.

At the heart of NCBA’s model are tailored financial solutions such as asset leasing, trade finance, and supply chain financing. These products are designed to support sustainability and cash flow management, while recognizing the cyclical nature of manufacturing.

But the bank goes further. Beyond lending, NCBA provides long-term advisory services, partnership development, and policy alignment support, hence helping clients navigate structural bottlenecks, mitigate risks, and take advantage of growth opportunities.

NCBA’s 30 years of experience in structured investment banking is now being leveraged to serve the manufacturing sector more intentionally. The bank is collaborating with industry associations, aggregators, and off-takers to create funding structures that span entire value chains. The result is not only reduced risk exposure but also financing that leads to measurable, sustainable growth.

This approach also extends to shaping the broader business environment. NCBA is actively engaging in public-private dialogue to advocate for policies that improve the ease of doing business. Combined with ongoing market research, these efforts ensure that clients can make informed, viable decisions in an increasingly competitive regional market.

The importance of this work cannot be overstated. Kenya’s manufacturing sector directly employs over 350,000 people and supports another 1.6 million indirectly. According to KNBS data, the sector grew by 2.1% in the first quarter of 2025, contributing to overall GDP growth of 4.9%. Yet, barriers such as limited access to affordable long-term capital, fragmented supply chains, and weak regional competitiveness persist.

As KAM Chief Executive Tobias Alando noted: “When we talk about value chain financing, we are talking about ensuring everyone in the chain, from the farmer, aggregator, transporter, to the processor and final manufacturer, is bankable.”

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