Sidian Bank signs $9m deal with Oikocredit to support SMEs in Kenya
23-09-2021 08:51:00 | by: Pie Kamau | hits: 802 | Tags:

Sidian Bank, a mid-tier bank focusing on SMEs in Kenya, has signed a $9 million million deal with the Netherlands based social impact investor, Oikocredit. Sidian Bank has been at the forefront of providing financial solutions to the SME sector in the economy through shaping, developing and addressing the needs of entrepreneurs.

The funding deal will enable the bank to support onward lending to the SME sector in Kenya. The funding will 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 to realise their potential through providing tailor-made financial solutions.

Chege Thumbi, CEO, Sidian Bank:  "I am delighted with the direction that the bank is taking. 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."

Oikocredit, 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.

Caroline Mulwa, Oikocredit's Investments Manager, East and Southern Africa: “Oikocredit is excited to be part of Sidian Bank's Growth. This institution has demonstrated the ability to package trade solutions to the emerging SME clientele. 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 a lasting social impact on the low-income sections of society. During the investment period, Oikocredit will work with the bank to mainstream social impact and its measurement into its lending activities.”

According to Oikocredit's estimates, 600 million jobs will be needed by 2030 to absorb the growing global workforce, making SME development a high priority for many governments worldwide. In emerging markets, most formal jobs are generated by SMEs, which create 7 out of 10 jobs. However, access to finance is a key constraint to SME growth. It is the second most cited obstacle facing SMEs to grow their businesses in emerging markets and developing countries.