Stanbic Bank’s Sh62 Million Project to Support MSMEs

Stanbic Bank Kenya has signed a Sh62 million initiative aimed at helping small businesses in their recovery and growth following the COVID-19 pandemic.

500 microenterprises and 200 small businesses from the services, commerce, agricultural, manufacturing, and construction sectors are among the primary beneficiaries of the interventions.

The project, which is being carried out in collaboration with the Stanbic Kenya Foundation and the German Development Cooperation, aims to assist Micro Small, and Medium Enterprises (MSMEs) in responding to, restoring, and recovering from the pandemic’s consequences.

It is part of the German Federal Ministry for Economic Cooperation and Development’s (BMZ) Employment and Skills for Development in Africa (E4D) Programme, which is being implemented by GIZ and the Stanbic Kenya Foundation.

Initiative’s focus

The intervention, which is aimed at 3,000 MSMEs, aims to instill an entrepreneurial culture in them, strengthen their businesses and technical skills in order to improve their capacity, broaden market prospects, and obtain access to affordable finance.

“MSMEs make a substantial contribution to livelihoods and inclusive growth in the country. Given that they account for a considerable percentage of the country’s Gross Domestic Product (GDP), this partnership will have a great impact on our small businesses and the economy.” Lawrence Karanja, Chief Administration Secretary, Ministry of Industrialization, Trade and Enterprise Development. 

The initiative will focus on three primary areas: entrepreneurship and business skills, introducing new business models, access to financing to assist MSMEs struggling to secure funding to run their enterprises, and facilitating access to new markets and value chains.

The program would facilitate 0% interest loans for MSMEs that can present viable business plans as part of the business recovery tools it will supply.