Sidian Bank signs a deal with Oikocredit to support SMEs in Kenya
Nairobi, Kenya (22 September 2021) - Sidian Bank, a mid-tier bank focusing on SMEs in Kenya, has signed a KES 990 million deal with the Netherlands based social impact investor, Oikocredit.
The bank has today secured a funding deal that will enable the bank to support onward lending to the SME sector in Kenya. The funding will support the bank's growth plans to further its strategy of providing affordable credit to its SME clients and privately-owned business enterprises as it works towards empowering entrepreneurs to realise their potential through providing tailor-made financial solutions.
Sidian Bank has been at the forefront of providing financial solutions to the SME sector in the economy through shaping, developing and addressing the needs of entrepreneurs.
Speaking to CEO Sidian Bank at the signing ceremony, "I am delighted with the direction that the bank is taking. This is yet another footprint of the bank's strategic initiative to be the preferred bank for trade finance solutions and SMEs, especially in view of the impact of the pandemic on SME businesses. We intend that the success of this partnership will impact SMEs ranging from small, medium and large."
Oikocredit, a social impact investor and worldwide cooperative, has over four decades of experience in promoting sustainable development through investments and focuses on investments around financial inclusion, agriculture and renewable energy.
Oikocredit's Investments Manager, East and Southern Africa, Caroline Mulwa, noted “Oikocredit is excited to be part of Sidian Bank's Growth. This institution has demonstrated the ability to package trade solutions to the emerging SME clientele. This investment will enable the bank to lend more and thus contribute to the creation of sustainable jobs, which is in line with the mission of Oikocredit to create a lasting social impact on the low-income sections of society. During the investment period, Oikocredit will work with the bank to mainstream social impact and its measurement into its lending activities.”
According to our estimates, 600 million jobs will be needed by 2030 to absorb the growing global workforce, making SME development a high priority for many governments worldwide. In emerging markets, most formal jobs are generated by SMEs, which create 7 out of 10 jobs. However, access to finance is a key constraint to SME growth. It is the second most cited obstacle facing SMEs to grow their businesses in emerging markets and developing countries.
Social impact investor and worldwide cooperative Oikocredit has 45 years of experience funding organisations active in financial inclusion, agriculture and renewable energy.
Oikocredit's loans, equity investments and capacity building aim to enable people on low incomes in Africa, Asia and Latin America to improve their living standards sustainably.
Oikocredit finances 529 partners, with total outstanding capital of € 835.5 million (at 30 June 2021). For more information: www.oikocredit.coop.
About Sidian Bank
At Sidian Bank, we recognise the significant investment and inherent risks that an entrepreneur takes to make his ideas and dreams a reality. It is for this reason that our mission is to empower entrepreneurs to create wealth through provision of transformational financial solutions that meet entrepreneurs' needs and facilitate growth through convenience and choice. The Bank serves its customers via its 42 branches.
Note for editors
For more information or to request an interview, please contact:
Jasmin Panjeta, Communications Business Partner, Oikocredit International, telephone: +31 33 422 4040, email: firstname.lastname@example.org.