This archive report was first published on 7 October 2021.
Kenya's SME banking leader, Sidian Bank, has made a significant impact in the water, sanitation, and hygiene (WASH) sector through its partnership with Aqua For All, a Dutch non-profit institution. The partnership, launched in August 2020, aimed to provide lending towards WASH projects in the country.
As of October 7, 2021, the bank has disbursed a total of €4.1 million, financing over 558 micro, small, and medium-sized enterprises (MSMEs) and benefiting an estimated 2.6 million people in Kenya. This achievement is a testament to the demand for WASH-related funding in the MSME market segment.
Speaking during a courtesy visit, Chege Thumbi, CEO of Sidian Bank, emphasized the bank's commitment to supporting MSMEs, community-based water projects, and water service providers for WASH projects. He encouraged all MSMEs in the WASH sector to leverage on this opportunity.
The partnership's success has paved the way for the next phase, focusing on continued support to MSMEs, community-based water projects, and water service providers. The key areas of focus include projects with impact on multiple beneficiaries, reduction in energy costs through alternative energy sources, and financing water projects that contribute to climate change mitigation.
According to Josien Sluijs, MD of Aqua For All, the partnership established the COVID-19 WASH Loan Facility to support Kenyan MSMEs with favorable working capital facilities to overcome challenges resulting from the pandemic. The institution aims to help service providers respond to new opportunities, such as transitioning to renewable energy sources, and provide access to clean and safe water and better sanitation and hygiene services.
