This archive report was first published on 1 July 2019.
On July 1, 2019, Barclays Kenya announced its plan to provide loan products tailored to the needs of small businesses in Kenya.
According to a nationwide survey, most small and medium enterprises (SMEs) lacked credit facilities that understood their business model.
Barclays Kenya business banking director Elizabeth Wasunna-Ochwa stated, 'We are engaging individual SMEs with a view to providing the type of product that reflects their needs. SMEs need training on bookkeeping as many were owner-run.'
The lender aims to support low-end SMEs by providing them with loans to improve their processes via the purchase of equipment to fulfill contracts awarded to them by larger firms.
Barclays Kenya recently announced flat earnings of Sh1.9 billion for the three-month period ended March, as costs of rebranding to Absa ate into its bottom-line.
The lender's total interest income grew 7.1 percent to hit Sh7.4 billion as the loan book expanded 9 percent to Sh180.4 billion.
Barclays Kenya is not the only lender to increase its focus on SME lending, a segment that was hardest hit when banks constricted lending following the rate cap law.
Five commercial banks recently unveiled a Central Bank of Kenya-backed loan product targeting SMEs that would see businesses access unsecured loans ranging between Sh30,000 and Sh250,000.
