Absa Bank Kenya has announced that it will provide Sh100 billion to micro, small, and medium enterprises (MSMEs) in various sectors over the next three years. The funding will be in the form of working capital.
This announcement was made by Absa Bank Kenya Managing Director and CEO Abdi Mohamed during the bank’s Annual Business Club Forum in Nairobi.
“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 (GDP),” Mohamed said.
“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,” he added.
Mohamed also noted that the bank’s commitment to MSMEs complements its four-pronged approach for its SME customers, which includes access to markets, access to information, access to mentorship and coaching, and access to sustainable finance.
The session discussed opportunities for businesses, and especially SMEs, to thrive amidst the prevailing challenging operating environment.
“The Ministry has set several key initiatives to ensure the creation of an environment in which MSMEs can thrive and achieve their full potential,” Micro and Small Enterprises Authority Director General/Chief Executive Officer Henry Rithaa said on behalf of Cooperatives CS Simon Chelugui.
“One of the key targets the Ministry is revitalising priority value chains that create impact, reduce wastage and duplication in our economy,” Rithaa added.
“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,” he said.
Absa Bank Kenya’s commitment to MSMEs is a positive development for the Kenyan economy. MSMEs are the backbone of the economy, and providing them with access to finance and other resources is essential for their growth and development.