The African Guarantee Fund has bolstered Sidian Bank’s lending for small businesses, with a focus on women entrepreneur .
Under the risk-sharing guarantee facility, Sidian Bank plans to scale up its lending to small businesses with women-led businesses earmarked at least 30 percent of the amount.
Sidian Bank has received an enhancement from African Guarantee Fund to bring its total loan portfolio guarantee to KES 1.5 billion.
This enhancement of the portfolio guarantee limit is set to empower the bank to provide enhanced support to the Kenyan SME sector over a period of 7 years, commencing in 2023.
Speaking at the signing ceremony, Mr. Chege Thumbi, CEO of Sidian Bank, expressed his enthusiasm for the partnership, stating, “Sidian Bank has always been committed to supporting SMEs across the country, and this collaboration with the African Guarantee Fund marks a significant milestone in our efforts to provide accessible financial solutions.
SMEs are the backbone of our economy, and we are dedicated to helping them thrive through various financial instruments designed to improve access to finance.
This latest collaboration with the African Guarantee Fund further solidifies the bank’s commitment to the growth and prosperity of SMEs and increased contribution to the country’s GDP.”
On his part, African Guarantee Fund Group Chief Executive Officer, Jules Ngankam said, “We are excited about this renewed partnership and the prospect of having an even greater impact in reducing the SME financing gap, which is still a major concern in this critical sector and has been linked to the widespread closure of these small and medium businesses.”
“The additional facility gives Sidian Bank an extra security measure to expand its lending activities to SMEs, especially green businesses and gender-smart projects, and therefore fostering an inclusive and sustainable economic growth in Kenya” Jules added.
AGF’s risk-sharing guarantee facility will enable Sidian Bank to scale up its lending activities to SMEs,ensuring that the businesses have access to the credit facilities they need to thrive.
The African Guarantee Fund is a pan-African guarantee provider whose mission is to empower SMEs to fully play their role as engines of growth in the continent.
