The partnership aims to unlock new growth potential for SMEs by bridging the credit gap, providing financial guidance and accelerating business linkages for entrepreneurs in Kenya.
Under the arrangement, Branch MFB will provide loans and working capital of up to Ksh. 1 million for MSMEs on Solv Kenya’s platform, facilitating their cash flow and stock financing from suppliers and distributors.
Speaking during the partnership announcement, Branch East Africa Managing Director Rose Muturi said seamless access to digital financial services will help address liquidity challenges for SMEs.
This partnership, she said, goes beyond simply providing instant digital loans to enterprises. It is about empowering SMEs with market linkages and support to build sustainable businesses and contribute to Kenya’s economic growth.
“Access to credit facilities and business support is key to unlocking the full potential of our SMEs. The partnership is a significant step forward in achieving this goal. By combining our expertise, we will provide Kenyan entrepreneurs with the comprehensive support they need to scale their businesses and contribute to a more vibrant Kenyan economy,” Ms. Muturi said.
Solv Kenya has a diversified portfolio on its platform, cutting across various supply chains ranging from food, consumer goods, construction, alcoholic beverages, animal feeds, electronics, airline and travel. SMEs participating in the enrolled value chains are able to obtain stock financing from Branch MFB through the Solv digital platform.
African Lead SC Ventures and Chief Executive Officer Solv Kenya Dan Karuga said the partnership enables them to de-risk lending to MSMEs while opening them up to a diversified portfolio across various supply chains.
“This partnership is a perfect alignment of our technological expertise and a testament to the power of collaboration in driving innovation and growth in Africa’s digital economy. We are confident we will unlock new capital streams for SMEs, enabling them to scale efficiently. Together, we aim to reach out to more MSMEs and offer them convenient and affordable credit solutions that suit their needs,” Mr. Karuga said.
“At Branch, we remain committed to cooperating with other industry players to offer financial solutions. Our partnership with Solv Kenya creates a significant embedded financing solution for MSMEs,” Branch International CEO Matt Flannery Said.
Founded in 2015 in Kenya, Branch is a digital finance app providing access to instant loans and other digital banking products across Africa and Asia. Branch serves customers in Kenya, Tanzania, Nigeria and India, with offices in Nairobi, Lagos, Bangalore, Mumbai and Silicon Valley. In March 2022, after the merger and acquisition of Century Microfinance Bank, they became Branch MFB (Branch Microfinance Bank).
Solv Kenya is a B2B marketplace for micro, small and medium enterprises (MSMEs) in Kenya. It is powered by the Standard Chartered Group and facilitates commerce in a trusted environment while also providing access to finance and business services for small businesses.