KCB Bank Kenya and the Swedish International Development Cooperation Agency (SIDA) introduced a Ksh1 billion guarantee program on August 10, 2023.
This initiative aims to reduce the risks associated with lending to small and medium-sized enterprises (SMEs) and help them secure credit for their growth endeavors.
During the agreement signing event, Mr. Michael Kung’u, the Acting Director of Retail Banking at KCB Bank, highlighted that this new approach will significantly boost SMEs in utilizing the bank’s expanded range of financing choices. This support will enable SMEs to play a more substantial role in boosting Kenya's economic growth.
“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,” Kung’u said.
“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,” he added.