Kenya: SME bank receives Sh600m from US Private Equity fund
The funding will improve SMEs' access to finance in Kenya.SME lender Jamii Bora Bank has received a Sh600 million (€5.5 million) capital injection from US-based private equity fund Equator Capital Partners, under its ShoreCap II fund.
The investment, which will grant a 15 per cent stake to ShoreCap II, is expected to improve access to finance for small and medium-sized enterprises (SMEs) in Kenya.
"This investment is a testament to our sound strategy, stable financial position and commitment to creating tangible impact and enhancing banking value offered to SMEs across Kenya," said Jamii Bora Chief Executive, Sam Kimani in a press release.
"It is a transitional period for the Kenyan banking industry. We believe Jamii Bora Bank's strategic focus as an SME lender strongly resonates with our investment approach to deliver inclusive financial services that promote sustainable economic, social and environmental development through private sector investments," said Nathalie Gabala, the Director of African investments at Equator Capital Partners.
According to figures from the Kenya Financial Sector Deepening programme, the micro, small and medium-sized enterprise market has approximately 7.5 million enterprises contributing around 44 per cent to the Kenyan GDP.