This archive report was first published on 20 August 2019.
On August 20, 2019, the African Development Bank (AfDB) approved a USD 8 million (approximately Sh824 million) targeted financing to Kenya's Credit Bank for lending exclusively to small and medium enterprises in construction, agriculture, renewable energy, and manufacturing.
According to Stefan Nalletanby, Bank Group director for financial sector development, Credit Bank is well-positioned to succeed in providing innovative longer-term financial solutions to SMEs in Kenya. The bank has a strong track record of supporting SMEs, providing working capital and trade finance facilities.
Head of Business and Marketing at Credit Bank, Pamela Mutembei, identified lack of systems and processes as a major challenge faced by entrepreneurs. She noted that many businesses lack the resources and/or skills to set up systems that ensure smooth operations.
The Entrepreneurship Hub, established by Credit Bank in 2016, aims to provide a platform for entrepreneurs to engage, learn, and find mentors who can help them prosper. The hub has looked at addressing challenges such as lack of resources, systems, and people, with a focus on providing investor-ready businesses and controlled growth trajectories.
The funding from AfDB will support transactions aimed at improving the productive capacities of SMEs, thereby enhancing entrepreneurship, job creation, income generation, and sustainable growth. The project is expected to have a multiplier effect on Kenya's economic growth.
