SBM Bank Kenya has signed a risk sharing agreement with the African Guarantee Fund (AGF) worth Ksh. 1.2 billion (USD 10,000,000) to increase financing of SMEs and women led enterprises.

The facility will unlock opportunities for the SMEs together with transactions in the green space and women led enterprises to access credit on favourable terms. This will mitigate the challenges they experience in scaling up their businesses and increasing their contribution to wealth creation and job opportunities.

Speaking during the signing ceremony, SBM Bank Kenya Limited CEO, Moezz Mir said “Considering the financial hurdles experienced by most SMEs due to their risk profile and lack of security, SBM is always exploring innovative ways to mitigate possible risks in this sector and help SMEs overcome this challenge.’’

Mr Mir revealed that the Bank’s move to engage in such strategic alliances is aimed at realizing its strategic objectives. They include transforming the SMEs sector, supporting women led businesses, and offering sustainable finance to businesses that focus on clean energy, cleaner production, green services, and climate-smart agriculture and natural resource management.

“This facility is unique in several ways as it represents an investment, productivity, and the acceleration of growth opportunities and realization of the UN sustainable development goals. As a progressive bank, we are deliberately playing a part in transforming the livelihoods of the Kenyan people by opening up markets for green businesses, accelerating wealth creation and improving the quality of life,” added Mr Mir.

The partnership agreement between the two institutions is expected to impact hundreds of SMEs across the country in the next 5 years.