The East African Development Bank (EADB) has unveiled a program to bolster the growth of Small and Medium Enterprises (SMEs) in Kenya. In partnership with Sidian Bank, HF Bank, Development Bank of Kenya (DBK), and Kenya Women’s Finance Trust Microfinance Bank (KWFT), EADB will fund the Ksh892 million initiative, targeting over 1,300 SMEs nationwide.
These financial institutions will extend direct loans to SMEs in sectors including agriculture, transport, commerce, and manufacturing. Speaking during the signing ceremony, EADB Director General, Ms Vivienne Yeda, emphasized the essential role of SMEs in East African economies.
“SMEs are the backbone of the East African economies, and EADB is committed to sustaining and facilitating their growth through financial institutions,” Ms Yeda said. “Over the last 50 years, the Bank has been instrumental in stimulating the East African economies through its financing strategy, impacting millions of lives in the region.”
CEOs of the partnering financial institutions lauded the programme, underscoring the opportunities it presents for businesses to build wealth and enhance Kenyan communities’ lives.
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Sidian Bank MD Chege Thumbi commented: “Our partnership with EADB has significantly supported our SME customers. With EADB’s unwavering support, we have extended affordable credit to enterprises that have struggled to access finances. We will continue this support, particularly for agriculture-based enterprises, a cornerstone of the Kenyan economy.”
HF Bank MD Peter Mugeni echoed this, stating the line of credit reaffirms HF’s shared commitment to empowering SMEs in Kenya. These enterprises create jobs, foster innovation, and contribute significantly to Kenya’s national GDP, he said.
“The SME sector offers enormous potential for Kenya’s socio-economic transformation. At KWFT, we empower women in SMEs, enabling them to provide for their families and build generational wealth through funding like this. Affordable credit is a game changer for SMEs,” KWFT Microfinance Bank MD, Mr Benson Kitabu, said.
DBK Managing Director Johnson Kiniti his bank has long promoted local entrepreneurship, stimulating economic and social growth. “This line of credit will enable us to reach more businesses, offering a lifeline to create employment and contribute to the national economy,” Mr Kiniti said.
EADB SME funding program has provided $61 billion in affordable credit to thousands of SMEs in Kenya, Uganda, Tanzania, and Rwanda through local financial institutions over the past 11 years.
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