Connect with us

Hi, what are you looking for?

Standard Chartered Bank Kenya CEO Kariuki Ngari/Courtesy


Standard Chartered Bank lends Sh6.3Bn to SMEs in 9 months

Standard Chartered Bank Kenya CEO Kariuki Ngari/Courtesy

NAIROBI, Kenya, Nov 14 – Standard Chartered Bank injected Sh6.3 billion in direct and indirect lending to Micro, Small and Medium enterprises (SME) in 9 months to September 2019, supporting more than 8,000 such enterprises in the process.

“As a bank, we appreciate the key role played by the SME sector play in sustained growth of the Kenyan economy and we like to restate our commitment to supporting the SME, and the private sector in general,” said Chief Executive Officer, Kariuki Ngari.

“This reiterates our commitment towards supporting lending to the private sector, particularly the Small and Medium Enterprise sector despite the prevailing capped interest rate regime. ,” Ngara added.

Credit crunch

Since 2016 following the enactment of the interest rate capping law, private sector has experienced unprecedented credit crunch. As such, there has been a huge financing gap with most SMEs losing access to credit

“The repeal of the interest rate cap is a step in the right direction as it allows market forces to determine interest rates and to price risk appropriately. Standard Chartered Bank would however like to reassure clients that they will not see a spike in interest rates,” Ngari said.

Over the last couple of years, we have realigned our business model and massively invested in technology to derive efficiencies which has enabled us share the savings with our clients,” he explained.

“As Standard Chartered Bank, we hold ourselves to a high standard and commit to act responsibly by doing right by our clients and the communities in which we operate to fulfill our purpose of Driving Commerce and Prosperity through our unique diversity,” he added.

Ngari said the existing loan facilities will not be repriced following the repeal of the interest rate cap.

“These facilities will continue under the existing loan agreements. We are finalizing plans to roll out a fully-fledged Risk – based pricing model for new facilities, which we will announce in due course,” he said.

Advertisement. Scroll to continue reading.
Click to comment

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...


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


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


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


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