- KCB Kenya has entered a cope with the Kenya Nationwide Chambers of Commerce and Industries (KNCCI) to supply loans to over 50,000 members of the chambers
- The 2 entities entered a three-year strategic partnership, opening a credit score line for Small and Medium-Sized Enterprises (SMEs) throughout the nation
- Past the credit score line, members of the KNCCI may also entry non-financial options, together with advisory, networking alternatives and coaching
KCB Kenya has entered a cope with the Kenya Nationwide Chambers of Commerce and Industries (KNCCI) to speed up entry to loans to over 50,000 members, principally small and medium-sized enterprises (SMEs).
The 2 entities entered a three-year strategic partnership, opening a credit score line for Small and Medium-Sized Enterprises (SMEs) throughout the nation.
The partnership additionally concerned KCB Basis, which can supply monetary capability constructing to KNCCI members throughout the nation.
KCB Chief Industrial Officer Samuel Makome stated the partnership would allow the financial institution to catalyse sustainable growth by facilitating entry to loans to the vital SME sector, together with the JuaKali (Casual business).
“We’re assured that the strategic partnership with the Nationwide Chambers of Commerce will handle the monetary and non-financial wants of the SMEs throughout all of the 47 counties, providing vital monetary intervention because the nation accelerates financial restoration efforts,” Makome stated.
KCB to coach SMEs, supply networking alternatives
Past the credit score line, members of the KNCCI may also entry non-financial options, together with advisory, networking alternatives, coaching, and free account upkeep payment for enterprises with over USD 1,000 of their accounts.
Commenting on the identical, KNCCI President Richard Ngatia stated the partnership would allow all of the 47 Kenya Nationwide Chambers of Commerce Chapters to entry inexpensive credit score circulation to develop their companies.
“Our efforts as KNCCI are centered on the core motion areas for SME help to facilitate the era of wealth by means of their companies. The partnership with the biggest financial institution in Kenya affords us a chance to create a sustainable credit score line for our member’s companies development,” Ngatia stated.
KNCCI companions with KDC to provide SMEs monetary entry
The partnership comes weeks after KNCCI signed a cooperation settlement with the Kenya Growth Company (KDC) to supply entry to loans to enterprises.
On November 29, 2022, the 2 companions formalised an settlement to see enterprises entry long-term mortgage amenities between KSh 10 million and KSh 500 million.
The partnership would see over 3,000 KNCCI members—largely SMEs and huge enterprises—entry financing from KDC at an inexpensive price, thus enabling these enterprises to handle the credit score shocks and dangers higher as they get well and develop their companies.
KDC Appearing Director Basic Christopher Huka stated the engagement would catalyse enterprisees to get well from a number of shocks which have hit companies up to now three years, together with the lasting impacts of the Covid-19 pandemic, the warfare in Ukraine and low productiveness in agriculture arising from local weather change.
“We’re excited to work with the Chambers of Commerce on this historic transaction, as we strongly imagine that the monetary amenities offered by KDC will function a catalyst to the sustainable growth of commerce and industrial enterprises within the nation by means of the supply of vital monetary interventions to SMEs and speed up financial restoration,” Huka stated.
Challenges that SMEs in Kenya face
The 2 partnerships come when SMEs in Kenya proceed to face challenges in doing enterprise. A number of knowledge, together with by the African Affiliation of Entrepreneurs, present that challenges fluctuate from lack of entry to loans, insufficient managerial coaching, sluggish adoption of know-how, and difficult laws and legal guidelines.
As a consequence of a scarcity of entry to credit score, the affiliation notes that many SMEs in Kenya can not entry low cost loans to scale up their operations. One of many causes is that almost all industrial banks ask for tangible collateral earlier than giving out loans. Since most entrepreneurs don’t have any land titles to make use of, they can’t qualify for the loans.
“Most SMEs within the casual sector don’t use banks and like to do their transactions utilizing money. Because of this they don’t construct credit score and don’t have any relationships with banks the place they’ll entry loans each time wants come up,” the affiliation notes.