NAIROBI, Kenya, Oct 7 – Kenya, Sidian Bank a Mid-tier leader in SME Banking in Kenya has exceeded its target of €4 million fund launched through its partnership with Aqua For All, a Dutch Non-Profit institution.
The two organizations commenced a partnership in August 2020 was for the provision of lending towards the WASH sector (water, sanitation and hygiene) projects in the country.
Thirteen months into the launch of the partnership, the bank has disbursed a total of € 4.1 million having financed over 558 MSME’s and with an impact on an estimated 2.6million people in Kenya.
The disbursement of the funds was completed one year ahead of schedule, which is a clear indication of demand within MSME market segment for WASH related funding.
In addition to the success of the project, Sidian Bank will continue to support MSMEs in the wash sector.
The WASH program is tailored to cushion and support enterprises against the adversities of Covid-19 pandemic at subsidized loan terms.
This was targeted at MSME’s who deal in the distribution of water, improvement of sanitation and hygiene systems which is in line with the United Nations Sustainable Development Goal 6.
In the next phase of the Sidian Bank and Aqua For All partnership, the key focus will be on below areas:
Continued support to MSMEs, Community based water projects, water service providers for water, sanitation and hygiene projects
Focus on projects with impact to multiple beneficiaries being individuals, households, communities and commercial enterprises in the water, sanitation and hygiene value chain
Projects that are impacting on reduction in energy costs by transitioning to alternative energy e.g. through solarization, hydro projects, wind power
We are also keen to finance water projects that are contributing to climate change/impact positively to the environment
Supporting enterprises in improving efficiency through digitalization of water, sanitation and hygiene services by financing digitalization of systems and solutions in the distribution of water, billing, revenue collection, reduction of wastage in the water, sanitation & hygiene sector
Speaking during the courtesy visit, Chege Thumbi, the CEO of Sidian Bank said, “As a bank, we are passionate about supporting MSMEs, community-based water projects, water service providers for water, sanitation and hygiene projects.”
“Our solutions are innovative and tailor-made, specifically for projects with direct impact to our society, at individual, household, communities and commercial level. I call upon all MSMEs in the WASH sector to continue leveraging on this opportunity,” he ended.
The institution is also keen to finance water projects that contribute to climate change/impact positively to the environment.
The MD of Aqua for All, Josien Sluijs, said, “Our partnership with Sidian Bankestablished the COVID-19 WASH Loan Facility to support Kenyan MSMEs with favorable working capital facilities to overcome challenges resulting from the pandemic.
We also aim to help service providers respond to new opportunities, such as to make the transition to renewable energy sources that will bring greater sustainability and reduce consumers’ future water bills while continue to provide access to clean and safe water and betterment of sanitation and hygiene services.”
MSMEs providing water, sanitation and hygiene service need to be supported to continue operating and expanding their reach to safeguard access to these essential services for millions of Kenyans, especially those on low incomes, during the COVID-19 crisis and to pave the way to build the sector’s resilience in the future.