Absa Bank Kenya has secured a Sh1.25 billion Loan Portfolio Guarantee Facility from the African Guarantee Fund (AGF) to enhance credit access for small and medium enterprises (SMEs), including startups.
The agreement enables the bank to provide tailored financial solutions while leveraging AGF’s capacity development programs. These initiatives focus on improving SMEs’ managerial skills in governance, human resources, quality control, and marketing, particularly for businesses unable to meet traditional collateral requirements.
Jeremy Awori, Absa Bank Kenya’s Managing Director, emphasized the partnership’s role in addressing the financing gap for SMEs, which constitute the backbone of Africa’s economy. "We are exploring innovative risk-mitigation strategies to tap into this growth sector, which contributes 33% of Kenya’s GDP and employs over 50% of the workforce," he stated.
The facility offers up to 75% coverage for green enterprises and women-led businesses, with 50% for other SMEs. Jules Ngankam, AGF Group CEO, highlighted the initiative’s dual focus on closing the $42 billion gender financing gap and promoting climate-conscious growth.
AGF’s Capacity Development program will support Absa’s "Let’s Unite to See Her Empowered (SHE)" initiative, targeting 600 women-led enterprises within a year. This aligns with Absa’s broader SME empowerment efforts, including its Wezesha Biashara program, which has disbursed KSh50 billion in loans over five years.
