NAIROBI, Kenya, Oct 12 – Chase Bank Kenya has partnered with Stima Sacco in a bid to empower fast growing Small and Medium Enterprises (SMEs) through providing co-branded opportunities.
The partnership will enable the growth of the SME business line and in particular contractors who have been missing out on opportunities due to lack of bid and performance bonds.
Chase Bank chief Executive Paul Njaga says the first phase of the rollout will provide an array of services to Stima Sacco customers, which includes advanced payment guarantee, bid bonds and performance bonds.
Njaga says the sector is price sensitive hence the need to partner with savings and cooperative societies by offering subsidized rates pointing out that the cooperative movement commands 67 percent and 62 percent of the total assets and deposits respectively.
He says the cooperative movement in Kenya controls about 43 percent of Gross Domestic Product (GDP).
“Through this partnership, Chase Bank will gain traction in the sacco space, align with key savings and cooperative societies in the country in provision of financial services and carve the niche in the saccos space as the financier of choice,” he added.
He says that Chase Bank is keen on supporting the SME sector and through this partnership with Stima Sacco, SMEs will have increased revenue growth improved efficiency in service provision, flexibility in operation as well as return on investment.
“Stima Sacco is enthused to offer its members a one stop financial solution, competitive rates on bonds and Guarantees as well as an opportunity to strengthen our relationship with contracting companies,” said Stima Sacco’s Chief Executive Paul Wambua.
Earlier, Chase Bank announced that they will commit over Sh60 billion over the next three years to lend entrepreneurs in the Small and Medium Enterprises sector in a bid to give access to financing to entrepreneurs.
The fund is expected to supplement government efforts to expand funding to SMEs through initiatives like the Uwezo Fund as well as reserving of 30 percent of governments procurement contracts for women, youth and persons with disabilities.