Stanbic Bank Kenya has released its 2020 Report to Society which highlights its social, economic and environmental impact in the country.
Highlighting the key achievements on the report, the Bank restructured loans to the value of Ksh40 billion, extended repayment holiday to 7,203 clients and lowered interest rates saving customers Ksh665million.
“As a bank, we made a pledge to catalyze Kenya’s socio-economic growth. We remain committed to this promise, and by collaborating with strategic partners from the government and private sector, we have managed to create an impact in the lives of many individuals and enterprises through our Social, Economic and Environment (SEE) initiatives,” said Stanbic Bank Kenya Chief Executive Mr Charles Mudiwa.
The Report to Society highlights the Bank’s contribution to driving the country’s economic growth in seven key areas which include éducation, job creation and enterprise development, financial inclusion, health, infrastructure, trade and investment as well as climate change and sustainable financing. The report also demonstrates the Bank’s objective to create shared value by supporting the core pillars of the society while also realizing targeted financial returns.
On infrastructure, trade and investment, the Bank issued Ksh1 billion as guarantees in support of transportation infrastructure development while on trade and investment, the Bank provided unsecured short-term financing for trade to Small and Medium Enterprises (SME’s) backed by Ksh1 billion in secured guarantees.
Over the last year, the Bank has been on a deliberate journey to improve the livelihoods of many through the launch of the Stanbic Kenya Foundation. The Foundation has achieved significant milestones along the way and made an impact in éducation, job creation and enterprise development, through the launch of the Accelerate Program.
The Program seeks to position Kenyan businesses for success by providing individuals and enterprises with digital literacy and career development training, as well as funding and access to job markets. So far, over 21,000 SMEs and individuals have benefited from the programs. This was achieved through a Public-Private Partnership between the Stanbic Kenya Foundation, the Ministry of Industrialization, Trade and Enterprise Development and Microsoft Kenya. Through their Financial Fitness Academy (FFA), the Bank has supported individuals and SMEs to understand how to better manage their wealth. The Bank partnered with Microsoft and established the e-learning platform for community training as well as up-skilling people who have lost jobs due to Covid-19.
“Our goal of establishing the Accelerate Program was to address a significant skills gap in the country by boosting entrepreneurship and the employability of citizens. Over the years, we have been able to empower individuals to do more and become digitally proficient, reskill the Kenyan workforce who lost their jobs during Covid-19 and further ensure SMEs remain connected to their customers and have access to new markets,” noted Stanbic Bank Kenya Head of Foundation, Pauline Mbayah.
Another key milestone that the Stanbic Kenya Foundation has achieved under Financial Inclusion is its partnership with the United States African Development Foundation (USADF) to provide a combined grant fund of USD 10 million (Ksh1 billion) to local Micro, Small and Medium Enterprises (MSME’s) in Kenya. Already, Ksh33million has been distributed to seven winners of the grant fund. In addition to this, the Bank has successfully issued loans worth Ksh844million to women entrepreneurs through the DADA proposition.
Under Health, the Stanbic Kenya Foundation has managed to contribute over Ksh147 million in partnership with corporates to provide 192 oxygen therapy units to the Ministry of Health and 1,000 handwashing stations to vulnerable communities across the country at the peak of the pandemic. The Foundation has also carried out over 3,000 cancér screenings for those with limited access to affordable healthcare and invested in improving testing capacity and hospital infrastructure, food donations and humanitarian support.
On Trade and Investment, the Bank was recognised as Kenya’s Best Investment Bank by EuroMoney Awards for Excellence 2020 for helping facilitate the deepening of investment and trade flows between Kenya and other African countries, and between Kenya and global markets.
On infrastructure, Stanbic Bank has provided lending facilities for entities operating within key infrastructure sub-sectors, including construction and cement, transportation and logistics for the construction of roads across Kenya and South Sudan.
On Climate Change and Sustainable Financing, the Bank was the lead arranger for Ksh5.7 billion Green Bond by Acorn Holdings in Kenya in 2019. This was East Africa’s first-ever green bond, and the proceeds are going towards environmentally-friendly student accommodation in Nairobi.
Mr Mudiwa further noted that over and above the Bank’s commitment to supporting the social pillar of the country, Stanbic has managed to navigate through a challenging year due to Covid-19 and record strong financial results. This was achieved through a three-phased business strategy approach of responding, restoring and rebounding, said Mudiwa.
The Bank implemented a rapid response strategy that would have a positive societal impact by facilitating a return to a growth strategy which allowed them to continue supporting their clients and economies to recover from the effects of Covid-19.
The Bank was able to anticipate and adapt to operating conditions and trends with focus and urgency by accelerating digital adoption and reshaping their operations, infrastructure and resources to become more human and more future-ready.