Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
The bank is targeting achievement of its five-year strategic goals by leveraging trade finance, increased lending and financial backing to SMEs, which has seen the bank turnaround from loss making to a profit of Sh43 million as at June 30, 2019/CFM

Kenya

Sidian Bank gets second tranche of Sh300mn to support SMEs, Micro-Enterprises

The bank is targeting achievement of its five-year strategic goals by leveraging trade finance, increased lending and financial backing to SMEs, which has seen the bank turnaround from loss making to a profit of Sh43 million as at June 30, 2019/CFM

NAIROBI, Kenya, Oct 2 – Sidian Bank has received the second tranche of Sh300 million of the initial Sh600 million long term facility from Oikocredit for onward lending to SMEs and microenterprises.

The bank secured the Sh600 million facility in December 2016.

Chege Thumbi, Chief Executive Officer at Sidian Bank, said that the initial tranche of Sh300 million has been utilized to lend to SMEs and micro-enterprises, in line with the bank’s strategic plan to grow the loan book.

He further added that the funds have contributed to a 20 percent growth in the loan book with the lending extended to over one thousand customers.

The bank is targeting achievement of its five-year strategic goals by leveraging trade finance, increased lending and financial backing to SMEs, which has seen the bank turnaround from loss making to a profit of Sh43 million as at June 30, 2019.

This is on the back of increased lending, growth in customer deposits as well as non-funded income supported by trade finance, bancassurance, foreign exchange and treasury bond trading incomes.

The second tranche of Sh300 million will be utilized to further boost the bank’s lending capability to SMEs and microenterprises.

Caroline Mulwa, Investments Manager for Oikocredit in East Africa, said “Oikocredit and Sidian Bank have been working together since 2005. Sidian Bank is a good fit for our organization’s mission as the bank has a strong commitment to SMEs and micro-entrepreneurs. The funds provided will enable Sidian Bank expand its lending activities by providing its clients with access to finance to improve their businesses and create a lasting social impact for people on low incomes in Kenya.”

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...