Sidian Bank signs Ksh.990 million deal for SME support in Kenya
Sidian Bank, a mid-tier bank focusing on SMEs in Kenya, has signed a Ksh.900 million deal with the Netherlands-based social impact investor, Oikocredit.
The deal secured on Wednesday will enable Sidian bank support onward lending to the SME sector in Kenya.
The funding will be utilized to support the bank’s growth plans to further its strategy of providing affordable credit to its SME clients and privately-owned business enterprises as it works towards empowering entrepreneurs realize their potential through providing tailor-made financial solutions.
“This is yet another footprint of the bank’s strategic initiative to be the preferred bank for trade finance solutions and SMEs, especially in view of the impact of the pandemic on SME businesses. We intend that the success of this partnership will impact SMEs ranging from small, medium and large,” Sidian Bank CEO Chege Thumbi said at the signing ceremony.
Oikocredit, which is a social impact investor and worldwide cooperative, has over four decades of experience in promoting sustainable development through investments and focuses on investments around financial inclusion, agriculture and renewable energy.
During the signing Oikocredit’s Investments Manager, East and Southern Africa Caroline Mulwa, noted that Oikocredit is excited to be part of Sidian Bank’s Growth.
“This investment will enable the bank to lend more and thus contribute to the creation of sustainable jobs, which is in line with the mission of Oikocredit to create lasting social impact on the low-income sections of the society. During the investment period, Oikocredit will work with the bank to mainstream social impact and its measurement into its lending activities,” said Ms. Mulwa.
To absorb the growing global workforce, it is estimated that 600 million jobs will be needed by 2030 making SME development a high priority for many governments around the world.