NCBA has renewed its partnership with the African Guarantee Fund (AGF) to enable the bank provide financial solutions to SMEs, through an enhanced guarantee agreement of Ksh3 billion for 10 years.
Through the support of AGF’s risk-sharing mechanism, NCBA cumulatively disbursed Ksh16.4 billion in loans. Out of these credit facilities, AGF has supported 696 SMEs [over 3,500 transactions] amounting to Ksh8.0 billion. The outstanding portfolio is worth Ksh1.7 billion. The partnership has so far generated 7,200 jobs, of which 2,200 target women, while youth account for 4,100 jobs.
The deal was signed by Mr John Gachora, Group Managing Director of NCBA and Mr. Jules Ngankam, Group Chief Executive Officer of AGF. This enhancement will allow NCBA to further increase its commitment to Kenya’s SME segment promote the development of projects in renewable energy and sustainable agriculture as well as support women led/owned businesses.
“This strategic partnership with AGF is proof of our devotion to SMEs, particularly those spearheading sustainable practices led by women,” Mr Gachora. “I believe that by increasing our guaranteed limit, our capacity to offer more flexible and long-term financial solutions that support SME growth will contribute to economic growth.”
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NCBA reaffirmed its commitment to advancing financial inclusion for women entrepreneurs during a recent International Women’s Day dinner in Kapsabet, where the Group hosted its clients. Recognising the resilience and ambition of women-led businesses, NCBA emphasised its dedication to providing tailored financial solutions, fostering strategic partnerships, and offering business education programs. By equipping women entrepreneurs with the necessary resources, knowledge, and networks, the Group aims to support their growth and long-term success.
In addition to the extension of the credit guarantee facility, AGF will provide a Capacity Development grant to NCBA that will be utilised in enhancing its capacity to lend to more SMEs and particularly to women-led SMEs through creation of a pipeline of credit ready WSMEs.
“Our partnership with NCBA represents a significant step in our mission to support SMEs, who constitute almost 98% of all business in Kenya, and create over 30% of the jobs annually. NCBA has been a valued partner for over 12 years, and this renewal marks a new milestone in our shared mission to unlock financing for SMEs. Our collaboration has already achieved remarkable impact, and by increasing this facility, we can reach even more businesses that are shaping the future of Kenya’s economy,” said AGF Group CEO, Jules Ngankam.
Furthermore, this partnership corresponds with AGF’s goals of promoting women’s empowerment through the Affirmative Finance Action for Women in Africa (AFAWA) program and endorsing green initiatives to stimulate a more sustainable economy, through its Green Guarantee Facility.
NCBA actively promotes sustainability through targeted mentorship and skill-building programs for women and youth, fostering diversity and diligence. The Group directs at least 30% of its procurement to women and youth, advancing inclusion. Through a Ksh6.5 billion partnership with Proparco, NCBA supports green financing and women’s economic empowerment, aligning with its “Change the Story” agenda.
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Great to see NCBA stepping up with a Ksh3 billion credit guarantee to support SMEs in Kenya! Focusing on women-led businesses and sustainable projects is a smart move—hoping it really boosts economic growth and job creation as promised.