Sidian Bank Receives sh990M for SME Lending

Sidian Bank has successfully secured Sh990 million funding from Dutch private equity firm Oikocredit for future lending to Small and Medium Enterprises (SMEs). Oikocredit will support the bank in its focus on providing credit to small scale businesses. The loan will be repaid in five years.

“This is yet another footprint of the bank strategic initiative to be the preferred bank for trade finance solutions and SMEs, especially in view of the impact of the pandemic on SME businesses,” said Chege Thumbi, CEO Sidian Bank.

The funds are part of the bank and Dutch PE firm’s effort to promote funding of small businesses that face a lot of obstacles and struggles, especially when accessing credit.

“This investment will enable the ban to lend more and thus contribute to the creation of sustainable jobs, which is in line with the mission of Oikocredit to create lasting social impact on the low-income sections of the society,” said Caroline Mulwa, investment manager Oikocredit.

The joint partnership will support the growth of small businesses through the provision of guarantees for the bank’s customer loan facilities