The Kenya Manufacturers Association (KAM) and NCBA Bank Kenya have signed a deal the will see the two institutions collaborate in boosting manufacturing output among small manufacturers.
The two year agreement targets 300 manufacturing Small and Medium Enterprises (SME)
who will benefit from access to affordable financing, technology, product development, quality standards and certification which have been highlighted as key challenges facing small manufacturers.
“Financial institutions are reluctant to lend to SMEs, since they lack collateral to use when borrowing, to either start or expand their business. The pandemic has altered the way of doing business, hence, this calls on all stakeholders, including financial institutions, to develop innovative solutions to provide affordable financing solutions for SMEs,” said Phyllis Wakiaga, KAM chief executive.
KAM and NCBA will similarly provide financial solutions and promote market access through exhibitions, regional and international trade missions.
“This partnership comes at an opportune time as Kenyans and especially the SME sector are facing very difficult times with the second lock down. SME owners have experienced dramatic falls in business activity and revenues due to restrictions arising from the pandemic. As a bank, we care about SMEs and so we would like to encourage entrepreneurs to take advantage of the opportunities presented under this deal.” said Tirus Mwithiga, Group Director, Retail Banking, NCBA Bank Kenya.