Sh100 Billion Fund for SMEs Unveiled by Absa Bank

Absa Bank Kenya has committed a Sh100 billion funding facility to spur the development of Micro, Small and Medium Enterprises (MSME) across various value chains over the next three years.

The funding line is expected to improve the resilience of the sector by offering ready access to working capital, further cementing the Bank’s role in catalyzing Kenya’s economic growth and development.

Speaking during the Bank’s Annual Business Club Forum, Chief Executive Officer and Managing Director of Absa Bank Kenya, Abdi Mohamed, reaffirmed the lender’s commitment to keep funding the expansion of the MSME sector in the nation.

“As a Bank, we are fully cognizant of the immense contribution that MSMEs make to Kenya’s economy through job creation and their contribution to the Gross Domestic Product. We particularly recognize the need to avail sustainable finance solutions and expertise to cushion these businesses in times of unexpected downturns. The support we are committing today aims to ensure that MSMEs have ready access to capital that enhances their resilience,” Abdi said.

Chief Executive Officer of the Micro and Small Enterprises Authority (MSEA), Henry Rithaa, spoke at the event on behalf of Cabinet Secretary Simon Chelugui of the Ministry of Cooperatives and MSMEs Development. He said the Ministry has set several important initiatives to ensure the creation of an environment where MSMEs can thrive and reach their full potential.

“One of the key targets of the Ministry is revitalising priority value chains that create impact, reduce wastage and duplication in our economy. The priority value chains we are focusing on include leather, cotton, dairy, edible oils, tea, rice, the blue economy, minerals, forestry, as well as building materials. We believe these sectors have the potential to create millions of jobs far beyond what we have recorded so far,” Rithaa said.