Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

Finance

Co-operative Bank targets SMEs with custom financial products

NAIROBI, Kenya, Aug 23  Co-operative Bank has launched 3 new financial solutions targeting Micro, Small and Medium Enterprises in a bid to address the gaps and expectations of the business customer.

The new financial product comes bundled current accounts with several inbuilt collection/payment solutions.

The solutions include free point of sales machines, Lipa Na M-pesa termination, M-Collection and Co-op kwa Jirani Agents among others.

The financial product also offers working capital for users whose benefits include unsecured business loans and overdrafts, pre-approved limits on overdrafts and loans and e-loans.

“The user also accesses services such as letters of credit, guarantees, pre-import financing to facilitate cross-border trading. Others include supply chain financing and hand-picked insurance covers,” Moses Gitau, Head of Business Banking at the bank said.

MSMEs holds over 90 percent of the Kenyan private sector with over 15 million Kenyans employed in either the 1.7 million registered business or the 7 million that are unregistered.

The solutions come at a time when the World Bank has estimated that the economy will grow by 5.5 percent boosted by the manufacturing and tourism sectors in 2018.

The government is focused on cutting down spending, reducing borrowing, bringing down the fiscal deficit and raising revenues which will provide a conducive environment for the implementation of the Big Four Agenda of affordable housing, food security, manufacturing and universal health care.

“Co-operative Bank has committed to align itself with the regulator’s requirement of ensuring that a minimum of 20 percent of its lending goes to the MSME sector. Further to this, in support of the Government’s key agenda the Bank will closely support MSMEs who are key in the realization of this critical agenda,” Gitau said.

Advertisement. Scroll to continue reading.
Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...