Sidian Bank, a mid-tier bank focused on SMEs in Kenya, has received Ksh1.1 billion loan facility from Netherlands – based impact investor, Triodos Investment Management.
Sidian Bank has received USD 10 million from Triodos Investment Management that will facilitate onward lending to the Micro and SME sector in Kenya. The credit facility will be used for the expansion of Sidian Bank’s loan portfolio to Micro, Small and Medium-Sized Enterprises. The bank has been on a growth trajectory and has recently partnered with several international organisations on funding arrangements focused on the micro and small enterprise sector.
Sidian Bank CEO, Chege Thumbi said, “Our partnership with Triodos Investment Management comes at an ideal time when the bank has sustained profitability despite a tough economic environment caused by the Covid-19 pandemic. With this financing, the bank will be in a position to increase financial backing to SMEs. As Sidian Bank, we are passionate about supporting the growth of Micro and SME customers in line with our goal to be the preferred bank for provision of financial solutions to entrepreneurs.”
Triodos Investment Management has been active as an impact investor for more than 25 years. This new partnership is aligned with the investor’s main agenda of being a driving force towards a society that is humane, ecologically balanced and works for the benefit of all.
Tim Crijns, Fund Manager at Triodos Investment Management said, “We are delighted to partner with Sidian Bank especially in these challenging times where the Micro and SME sector in Kenya and wider Africa needs financial services to grow its businesses. This partnership with Sidian Bank will offer investment opportunities that are crucial to building local economies and will enable innovative entrepreneurs to develop sustainable businesses.”
Financial and development institutions have shown great initiative in supporting the growth of SMEs and entrepreneurs contributing to economic growth and development of Kenya. Mr Chege Thumbi of Sidian Bank believes this will go a long way to increase access to finance that can spur growth of SMEs and contribute to sustainable development and jobs in Kenya by enabling business to scale and flourish.