Sidian Bank, a mid-tier lender in SME funding in Kenya has hit its target of €4 million (Ksh512 million) fund launched through its partnership with Aqua For All, a Dutch non-profit institution.
The partnership was for the provision of credit facilities towards the WASH (water, sanitation and hygiene) sector projects in the country.
Thirteen months into the launch of their partnership, the bank has disbursed a total of €4.1 million having financed over 558 MSME’s and with an impact on an estimated 2.6 million people in Kenya. The disbursement was completed ahead of schedule, which is an indication of the demand within MSME market segment for WASH-related funding.
The WASH program supports enterprises in enhancing efficiency through the improvement of water, sanitation and hygiene systems and solutions. This covers the distribution of water, reduction in water wastage, improvement of sanitation and hygiene systems.
Aqua for All, the Dutch non-profit institution gave a grant of three million Euros that was to be provided through Sidian Bank. The bank then developed a financial solution, in response to Covid-19 which was a WASH loan facility with subsidized terms. This was targeted at MSME’s in the water and sanitization value chain.
The partnership enabled Sidian Bank to develop an innovative finance facility in support of MSMEs in the water, sanitation and hygiene economy in Kenya. This has also contributed efforts towards efforts to fight COVID-19.
“As a bank, we pledge continued support to MSMEs, community-based water projects, water service providers for water, sanitation and hygiene projects specially for projects with impact to multiple beneficiaries being individuals, households, communities and enterprises projects that are impacting on reduction in energy costs by transitioning to alternative energy through solarization, hydro projects and wind power,” Mr Chege Thumbi, the CEO of Sidian Bank said.
Thumbi said that the institution is also keen to finance water projects that have contributed to climate change and have a positive impact to the environment.
“Our partnership with Sidian Bank established the COVID-19 WASH Loan Facility to support Kenyan MSMEs with favorable working capital, to overcome challenges resulting from the pandemic. We also aim to help service providers respond to new opportunities, such as to make the transition to renewable energy sources that will bring greater sustainability and reduce consumers’ future water bills,” MD of Aqua for All, Ms Josien Sluijs.
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