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.