Norfund, a Norwegian development financial institution, and Abler Nordic, a private equity firm, have announced a significant investment in Premier Credit Kenya, a leading microfinance institution.

This strategic partnership aims to empower micro, small, and medium-sized enterprises (MSMEs) in Kenya, fostering entrepreneurship and job creation. The two financial institutions have jointly invested $16 million USD.

Expanding Access to Affordable Finance

The investment aims to expand access to affordable finance for MSMEs in Kenya. By providing working capital loans in local currency, Abler Nordic and Norfund are helping to address the challenges faced by many businesses in securing the necessary funds to grow and thrive.

A Shared Commitment to Social Impact

Both Abler Nordic and Norfund share a commitment to empowering low-income households and creating jobs. Their investment in Premier Credit aligns closely with these goals, as MSMEs are a vital driver of economic growth and job creation in Kenya.

A Proven Track Record

Since its inception in 2013, Premier Credit has demonstrated a remarkable commitment to serving the needs of MSMEs, particularly in remote areas and informal settlements. The company has successfully reached over 600,000 entrepreneurs, providing them with affordable financing solutions.

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Empowering Women and Rural Communities

Premier Credit’s impact is particularly noteworthy in empowering women and rural communities. Close to 45% of its customer base is comprised of women, and over 60% of its customers reside in rural areas. This focus on underserved segments highlights the company’s dedication to promoting financial inclusion.

A Sustainable Business Model

Premier Credit’s success is supported by a sustainable business model. The company has maintained profitability, a strong loan portfolio, and a remarkable 90% customer retention rate. This achievement can be attributed to its relationship-based approach, fast turnaround times, and flexible repayment options.

The Importance of MSMEs in Kenya

MSMEs contribute significantly to Kenya’s economy, accounting for approximately 40% of the country’s GDP. With over 7.4 million businesses and 15 million employees, they are a major source of employment and income generation.

However, many MSMEs struggle to access the working capital they need to succeed due to limited access to traditional banking services.

Premier Credit’s Role

Premier Credit plays a crucial role in addressing the financial needs of MSMEs in Kenya. By providing affordable loans and tailored financial solutions, the institution helps businesses grow, create jobs, and contribute to the country’s economic development.

Expanding Loan Offerings

In addition to its existing MSME loans, Premier Credit will now offer the following:

• Salary Loans: These loans can help households cover unexpected expenses or bridge income gaps.
• Pension Loans: A financial lifeline for retirees seeking additional funds.
• School Development Loans: supporting low-cost private schools in improving their facilities and educational offerings.
• Asset Financing: Providing loans for water tanks and biodigesters, promoting sustainable solutions for energy and agriculture.

If you’re interested in learning more about premier credit kenya, you can easily find their premier credit kenya contacts on their official website. They offer a range of financial services, including various loan options with competitive premier credit kenya interest rates designed to support small and medium enterprises.

Additionally, their collaboration with organisations like Norfund enhances their reach and impact. The norfund logo represents their commitment to investing in emerging markets, including norfund kenya and norfund costa rica, helping businesses thrive in these regions. For more details, be sure to check out their resources.

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Geographic Expansion and Diversification

The new funding will enable Premier Credit to expand its geographic reach and increase its MSME portfolio. The company also plans to diversify into sectors like education and agricultural value chains, beyond its current focus on trade and transport.

Beyond Finance: Technical Assistance

Norfund and Abler Nordic will assess how they can provide Business Support and grants for technical assistance projects. This will help entrepreneurs and MSMEs not only with financial resources but also with the necessary skills and knowledge to succeed.

A Bright Future for Premier Credit

With the additional funding and expanded loan offerings, Premier Credit is well-positioned to continue its growth and make a positive impact on the Kenyan economy.

The company’s focus on both financial services and sustainable development positions it as a valuable partner for businesses and individuals across the country.