Absa Bank Kenya Plc has signed a Sh1.25 billion Loan Portfolio Guarantee Facility with the African Guarantee Fund (AGF), aiming to expand credit access for small and medium enterprises (SMEs) across Kenya. The five-year agreement allows borrowers to access up to Sh100 million per facility, with tailored coverage rates based on business type.
Green and women-owned enterprises will receive up to 75% coverage under the scheme, while other SMEs will qualify for 50% coverage. The initiative targets new or growth-oriented businesses focused on investments and working capital, emphasizing sustainable development and economic inclusion.
Absa Bank Kenya Managing Director Jeremy Awori stated the partnership addresses the financing gap faced by SMEs, which often struggle with risk profiles and collateral requirements. He highlighted the bank’s commitment to supporting the sector, which he described as a critical driver of economic growth and poverty reduction.
African Guarantee Fund Group CEO Jules Ngankam emphasized that closing the financing gap is essential for SMEs to contribute to job creation, skill development, and wealth generation. The facility also includes training programs on governance, financial management, and marketing to strengthen managerial capabilities among participating businesses.
