Absa Bank unveils Sh100 billion kitty for SMEs
By Noel.Wandera, October 19, 2023
Absa Bank Kenya has committed a Sh100 billion funding facility to spur the development of Micro, Small and Medium Enterprises (MSME) across various value chains over the next three years.
The funding line is expected to improve the resilience of the sector by offering ready access to working capital, further cementing the Bank’s role in catalysing Kenya’s economic growth and development.
Speaking during the Bank’s Annual Business Club Forum, Absa Bank Kenya’s Managing Director and Chief Executive Officer Abdi Mohamed said the lender is committed to continue investing in the growth of the country’s MSME sector.
“As a Bank, we are fully cognizant of the immense contribution that MSMEs make to Kenya’s economy through job creation and their contribution to the Gross Domestic Product. We particularly recognise the need to avail sustainable finance solutions and expertise to cushion these businesses in times of unexpected downturns.
The support we are committing today aims to ensure that MSMEs have ready access to capital that enhances their resilience,” Abdi said.
Revitalising priority areas
Speaking at the event on behalf of Simon Chelugui, the Cabinet Secretary, Ministry of Cooperatives and MSMEs Development, Henry Rithaa, Director General/Chief Executive Officer of the Micro and Small Enterprises Authority (MSEA) said the Ministry has set several key initiatives to ensure the creation of an environment in which MSMEs can thrive and achieve their full potential.
“One of the key targets of the Ministry is revitalising priority value chains that create impact, reduce wastage and duplication in our economy. The priority value chains we are focusing on include leather, cotton, dairy, edible oils, tea, rice, the blue economy, minerals, forestry, as well as building materials. We believe these sectors have the potential to create millions of jobs far beyond what we have recorded so far,” Rithaa said.
Absa’s latest commitment comes on the back of its recent launch of the Wezesha Stock proposition, a real-time digital platform for small and medium enterprises.