Absa Bank Kenya Commits Sh100 Billion to Support SMEs Over the Next Three Years

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Absa Bank Kenya has announced a Sh100 billion funding initiative aimed at empowering small and medium enterprises (SMEs) over the next three years. The announcement was made by Erastus Muthura, the Head of SME at Absa Bank Kenya.

This funding commitment will be complemented by an ambitious training program targeting 50,000 SMEs within five years. The training will be facilitated through the recently launched Absa Foundation, which focuses on enhancing social and environmental impact.

Erastus Muthura emphasized the bank’s dedication to empowering SMEs, recognizing their pivotal role in driving the economy. The funding is specifically designed to support businesses in various sectors, including education, agriculture, health, manufacturing, and trade.

The bank has tailored solutions to help entrepreneurs access both financial and non-financial skills, and has already engaged over 1,000 SMEs in the Mt. Kenya region through its “Wezesha Biashara” initiative.

Muthura also highlighted the need for insurance policies in Kenya that address pressing issues such as climate change and access to finance for businesses. He noted that Absa Bank intends to tackle these challenges through an ecosystem-led approach, bringing together various players to find solutions.

In light of emerging challenges affecting businesses, Muthura encouraged clients experiencing difficulty in servicing their loans to approach the bank and discuss their unique issues. He stressed the importance of understanding that each business faces distinct challenges and assured that the bank is ready to offer support.

The bank’s strategy includes a series of regional empowerment forums across Kenya, including in Coast, Western, Rift Valley, and Mt. Kenya. These forums are designed to empower women entrepreneurs, who are expected to receive 45% of the allocated funds.

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Absa has already conducted business empowerment meetings for women in key locations such as Isiolo, Meru, Garissa, Thika, and Nyeri. Muthura stressed that SMEs play a critical role in generating employment and reducing poverty across the country.

Notably, the bank has also tailored unique products to support women entrepreneurs, addressing their challenges in accessing capacity-building opportunities, exposure, and mentorship.

Muthura called on women in business to formalize their ventures, noting that this is an important step toward ensuring the sustainability of their businesses beyond the founder.