Co-operative Bank of Kenya has started a programme that will enable Micro, Small and Medium-sized Enterprises (MSMEs) to secure credit and acquire skills to grow their businesses.
The programme, which focuses mainly on training and equipping business clients with the skills and strategies to grow their businesses, will be rolled out in every county starting with Nakuru county.
It involves organising customer networking forums where small businesses operating in the regions will be engaged by the experts from the bank.
The move is part of the $150 million (Sh15.2 billion) partnership programme launched in mid-2018 between Co-op Bank and International Finance Corporation (IFC).
The objective of the programme is to provide MSMEs with affordable financing and business training model which will see them grow and create more job opportunities.
Micro, Small and Medium-sized Enterprises are the bedrock of wealth creation in Kenya as they account for over 90 per cent of Kenya’s private sector, employing over 15 million Kenyans in both the 1.7 million registered and 7 million unregistered businesses.
Speaking in Nakuru during the MSME customer networking forum launch, Moses Gitau, head of business banking at Co-operative Bank, said in 2017 the institution unveiled Sh15.2 billion funds which MSMEs can access unsecured business loans from.
“This was the first loan of its kind in Kenya to be accessed through our MCo-opCash App where businesses are able to borrow up to Sh2 million via their mobile phone, packaged insurance cover which is handpicked and specifically negotiated to suit various segments under MSME, revised and pre-approved limits on overdrafts and loans,” he said.
Gitau said the loans will be supported by trade services which include Letters of Credit, guarantees and supply chain financing.
David Kahura of Lanet Flour Mills said for traders to adopt a hands-on approach to their business, training is the key.
“They need to learn to equip themselves with skills, know how the industry works, understand government regulations, especially the ever-changing quality requirements and get a good financial partner,” he Kahura said