CBA targets SMEs in new business banking proposition

The Commercial Bank of Africa (CBA) has launched a new business banking proposition aimed tapping into the lucrative Small and Medium Enterprises (SME) market.

Speaking in Nairobi on Monday, CBA’s Chief Executive Officer Jeremy Nguze announced that the bank has opened a new SME branch in Nairobi, adding that this is aimed at increasing accessibility of services to businesspeople.

“Our revamped proposition has entailed the opening of a new SME-only branch on Kirinyaga Road, introduction of new products to our SME portfolio, and the revision of our customer management strategy that enables us offer the required support to the dynamic sector,” Nguze said.

The bank also rolled out a new credit appraisal process, saying that this new methodology will give more favourable loan terms to SMEs who were diligent in repaying previous loans.

In a statement to newsrooms, CBA announced that they will assign each SME a relationship manger – a move that is aimed at streamlining banking processes. The bank will also extend hours of operation at certain branches.

“As part of the new proposition, select CBA branches will remain open for longer hours and customers will also be introduced to 24/7 access through online and mobile banking platforms,” Nguza added.

Recently, CBA partnered with the Kenya Revenue Authority to launch the Common Cash Receipting System (CCRS) that makes it possible for business and individuals who import goods from other countries to pay the requisite taxes through CBA branches across the country, in a move that has been well received by SME’s.

Three out of every four people in gainful employment in Kenya, work in the SME sector which also contributes nearly 20% of Kenya’s GDP. Government statistics indicate that the sector is growing faster than other’s in the economy, and currently accounts for over 92% of all new jobs created annually.