The East African Development Bank (EADB) has launched a transformative initiative to boost the growth of Small and Medium Enterprises (SMEs) in Kenya. The new KES 892 million fund, unveiled in partnership with Sidian Bank, HF Bank, Development Bank of Kenya (DBK), and Kenya Women’s Finance Trust Microfinance Bank (KWFT), is set to impact over 1,300 SMEs across the country. This substantial investment will target critical sectors such as agriculture, transport, commerce, and manufacturing, providing the necessary financial resources to drive economic growth and job creation.
SMEs: The Backbone of East African Economies
SMEs play a crucial role in East Africa’s economic landscape. They are often referred to as the backbone of the economy due to their significant contribution to job creation, innovation, and GDP growth. Recognizing this, EADB’s Director General, Ms. Vivienne Yeda, emphasized the importance of supporting SMEs through accessible financing. “SMEs are the backbone of the East African economies, and EADB is committed to sustaining and facilitating their growth through financial institutions,” she stated during the program’s launch. Ms. Yeda also highlighted EADB’s 50-year legacy of fostering economic development in the region, impacting millions of lives through strategic financial interventions.
Partnering Banks Highlight the Importance of Affordable Credit
The CEOs of the partnering financial institutions underscored the immense opportunities this new funding presents for Kenyan businesses. Sidian Bank’s Managing Director, Chege Thumbi, expressed gratitude for the partnership with EADB, which has significantly benefited their SME customers. He noted that the new line of credit would particularly support agriculture-based enterprises, a cornerstone of Kenya’s economy.
HF Bank’s Managing Director, Peter Mugeni, echoed these sentiments, emphasizing the shared commitment to empowering SMEs. “These enterprises create jobs, foster innovation, and contribute significantly to our national GDP. This financing provides essential capital to support our people’s entrepreneurial spirit and resilience,” he said.
Benson Kitabu, MD of KWFT Microfinance Bank, highlighted the transformative potential of the SME sector for Kenya’s socio-economic development. He emphasized the role of affordable credit in empowering women entrepreneurs, allowing them to provide for their families and build generational wealth. “Affordable credit is a game changer for SMEs,” Kitabu noted, pointing out that this funding will have a lasting impact on the lives of many Kenyan women and their communities.
DBK Managing Director Johnson Kiniti added that as a development bank, their focus has always been on promoting local entrepreneurship. He praised the new line of credit as a vital lifeline for businesses, enabling them to create employment opportunities and contribute to Kenya’s economic growth.
EADB Continued Commitment to SME Growth in East Africa
Over the past 11 years, EADB has provided USD 61 billion in affordable credit to SMEs across Kenya, Uganda, Tanzania, and Rwanda through collaborations with local financial institutions. This long-term commitment underscores the bank’s dedication to supporting SMEs, which are essential for regional development and economic integration.
Conclusion
The launch of the KES 892 million fund by EADB marks a significant milestone in supporting Kenyan SMEs. With this new financing, over 1,300 businesses will gain access to affordable credit, enabling them to grow, innovate, and contribute to the country’s economic prosperity. As SMEs continue to play a pivotal role in East Africa’s economies, initiatives like this one are essential for driving sustainable development and improving the lives of millions.
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