I&M Bank expands sustainability funding for MSMEs

I&M Bank is stepping up sustainability-focused support for micro, small and medium enterprises (MSMEs), combining financing, business training and advisory services to help businesses cut operating costs, adopt cleaner energy and build more resilient operations.

The bank’s Head of MSME Banking, Eunice Kinyanju, said I&M is encouraging enterprises, particularly those involved in production and value addition, to consider alternative energy sources such as solar to reduce electricity costs and improve business efficiency.

“We encourage them to try as much as possible to use alternative sources of energy like you find in solar,” Kinyanju said, noting that the initial investment in solar can be costly for small businesses.

I&M Bank is supporting enterprises to overcome the upfront cost of adopting such solutions through financing.

Kinyanju said lowering monthly energy expenses can make businesses more sustainable, particularly as high operating costs remain a major challenge for MSMEs.

“The biggest challenge we have with MSMEs is high cost of running business,” she said, adding that creating efficiencies can help businesses become more sustainable and improve profitability.

The bank’s sustainability approach extends beyond financing to building the capacity of entrepreneurs. I&M has invested in seminars and workshops aimed at improving business efficiency and partnered with B-Lab to help enterprises develop models that can support sustainable growth.

It has also partnered with Google Hustle Academy to train SMEs on using artificial intelligence and technology to improve efficiency and expand their markets.

I&M Bank’s sustainability and community investment efforts also extend to communities around the Maasai Mara, where the I&M Foundation partnered with GIZ on the Predator’s Den programme.

The initiative is designed to equip local communities with business skills and encourage them to diversify their sources of income beyond traditional pastoralism.

The programme initially attracted about 300 applications, with participants trained on basic business planning and enterprise development.

The programme has supported enterprises in areas including goat milk production, vegetable farming, poultry and beekeeping.

Some entrepreneurs have identified hotels and other tourism businesses in the Maasai Mara as potential markets for their products, creating opportunities for local enterprises to participate in the tourism value chain.

Kinyanju said the initiative is helping change attitudes towards income generation, with beneficiaries developing businesses capable of creating employment within their communities.

“The Predators Den is one of the projects that as a brand, we would want it to continue growing, having serious impact,” she said.

The sustainability initiatives complement I&M Bank’s broader MSME financing portfolio, which includes unsecured working-capital facilities of up to Ksh.5 million, digital short-term loans, stock financing and invoice discounting.

Kinyanju said MSME financing must be accompanied by stronger business management skills, identifying capacity as a major constraint to enterprise growth.

“The biggest barrier to MSMEs' growth is actually capacity,” she said, pointing to the need for entrepreneurs to understand borrowing, maintain proper records and establish systems for managing their businesses.

I&M Bank currently serves slightly more than 700,000 MSME and retail customers and is targeting one million customers by the end of the financial year, while seeking to impact five million lives by 2030.