By Ongaga Ongaga
Sidian Bank has partnered with Kenya Industrial Estates (KIE) to expand access to credit and business development support for Micro, Small and Medium Enterprises (MSMEs) across Kenya.
The partnership, formalised through a Memorandum of Understanding (MOU), seeks to address barriers that continue to constrain MSME growth, including access to affordable and appropriate financing, business skills and markets.
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Under the agreement, Sidian Bank and KIE will collaborate on MSME training and capacity building, graduated and blended financing, customer referrals and access to larger credit facilities as businesses expand and demonstrate greater capacity.
Speaking during the signing ceremony at the State Department for MSMEs Development offices in Nairobi, Principal Secretary Susan Mang’eni said there was a need to rethink how credit and financial services are designed and delivered to small businesses.
Mang’eni said Kenyan MSMEs have a financing demand of about KSh4 trillion, making partnerships such as the one between KIE and Sidian Bank important in efforts to provide timely and affordable credit.
“MSMEs account for a significant share of economic activity and job creation in our country. If we can strengthen credit inclusion and ensure that businesses have access to financing that is appropriate to their needs, we can create the conditions for them to grow and, in turn, drive broader economic development,” she said.
The PS called for partnerships that would help MSMEs navigate financial and market risks through affordable and personalised financing models, structured credit and capacity building.
“We must move beyond a one-size-fits-all approach and develop solutions that respond to the realities of MSMEs,” she added.
Commitment to entrepreneurs
Sidian Bank Managing Director and CEO John Okulo said supporting MSMEs was central to the bank’s purpose and its commitment to entrepreneurs.
“Our role is not simply to provide financing. It is to understand the businesses we serve and develop financial solutions that respond to their needs, their stage of growth and the changing market environment,” Okulo said.
He said the partnership would enable the bank to complement financing with business solutions and market linkages, helping MSMEs move from survival to sustainable growth.
“We want to make finance a catalyst for enterprise development rather than simply a source of capital,” he added.
KIE Managing Director Nelson Kwamini said the partnership recognised the need to combine financial and non-financial support at different stages of an MSME’s growth.
“Our collaboration with Sidian Bank will enable us to strengthen the support we provide to MSMEs by combining access to finance with capacity building, training and business development,” Kwamini said.
He said KIE looked forward to building a stronger ecosystem with Sidian Bank that places MSMEs at the centre of economic transformation.
“By combining our respective capabilities, we can create more opportunities for businesses to become sustainable, resilient and competitive,” he added.
