The African Guarantee Fund (AGF) has issued a Loan Portfolio Guarantee to Sidian Bank to boost financing of SMEs in Kenya. The Guarantee line worth half a billion Kenya Shillings will be available for a period of 4 years starting 2021.
The partnership aims to support growth of SMEs through provision of guarantees for the Bank’s customer loan facilities. To cover the burden of credit access, the bank will offer adequate collateral to support their borrowing.
The AGF Loan Portfolio Guarantee will enable Sidian Bank scale up their lending activities to SMEs through provision of credit facilities through different instruments that provide accessibility to finance.
Commenting on the loan guarantee, Chege Thumbi, CEO Sidian Bank said, “At Sidian Bank, we are excited to partner with AGF in this Loan Portfolio Guarantee Facility. AGF is a valuable partner. They are as passionate as we are about supporting SME growth and success in Kenya and Africa. This last year has been particularly difficult for SMEs, having to grapple with a lot of uncertainty. We expect that this guarantee facility and our other financial solutions will provide much needed support to business owners and enable them emerge stronger.”
On his part, Jules Ngankam, CEO African Guarantee Fund said, “Sidian Bank provides efficient and convenient solutions to Kenyan entrepreneurs. Our loan portfolio guarantee will enable them to provide more financial solutions to their SME clientele especially in view of the impact of the pandemic on SME businesses. Most importantly, the guarantee facility will have an impact on thousands who are directly and indirectly dependent on the income generated from the SME beneficiaries.”