Kenya: €28.8 million to support SMEs

Dec 19, 2013

Chase Bank has signed a Sh3.4 billion (€28.8 million) agreement with development institution PROPARCO to create a credit facility designed to increase its lending capabilities to small and medium-sized enterprises in Kenya.

Chase Bank has signed a Sh3.4 billion (€28.8 million) agreement with
development institution
PROPARCO to create a credit facility designed to increase its lending capabilities to small and medium-sized enterprises in Kenya.

This seven-year credit facility will help the bank
reducing
the challenges that entrepreneurs continue to face in accessing finance to foster their business growth and development, said the bank in a press release published by newspaper The Star.

Chase Bank CEO Duncan Kabui said the debt facility will allow the institution to strengthen its long-term resources and support the sustainability of its organic growth.

Access to credit remains inadequate for SMEs in Kenya. However, the government's Economic Stimulus Programme has played an important part in creating credit for SMEs, according to African Economic Outlook.

In 2011, the government streamlined the financial sector by regulating microfinance institutions via a Business Regulation Bill to prevent the regulatory authorities from setting arbitrary charges and fees.

The Kenyan SME market is thought to account for up to 65 per cent of the country's economy, and provides 75 percent of all jobs.ADNFCR-2976-ID-801674682-ADNFCR