3 Ways the Unilever and Equity Bank Partnership Will Benefit SMEs in Kenya
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Unilever and Equity Bank have rolled out a KSh 2.4 billion Distributor Financing Solution aimed at empowering small and medium-sized enterprises (SMEs) in the fast-moving consumer goods (FMCG) sector.
Announced on July 9, 2025, the partnership is designed to address key challenges that Unilever distributors face, particularly access to credit, supply chain inefficiencies, and financial exclusion.
Here are three ways the Unilever and Equity Bank collaboration will support Kenyan SMEs:
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Easier Access to Credit for Distributors
The Unilever-Equity Bank partnership introduces customized credit solutions that lower traditional barriers to financing for SMEs. Many FMCG distributors struggle with high interest rates and strict collateral requirements that limit their ability to expand operations.
Through this joint initiative, distributors within Unilever’s network can now access working capital at more affordable terms. This enables them to purchase inventory in bulk, manage cash flow, and reinvest in business growth.
With Equity Bank’s reach in all 47 counties, the financing solution is expected to scale quickly and have a wide impact on small businesses across Kenya.
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Strengthening Last-Mile Delivery and Inventory Management
By offering capital specifically for supply chain needs, the program allows SMEs to improve stock management and streamline logistics. Many distributors operate in areas affected by infrastructure limitations, leading to inconsistent product availability.
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The financing helps address such issues by enabling businesses to maintain adequate inventory levels and meet fluctuating market demand.
Unilever’s Managing Director for East Africa, Luck Ochieng, noted that the initiative enhances supply chain resilience, ensuring that products reach customers even in remote areas. This directly supports operational stability and helps SMEs grow sustainably within the FMCG sector.
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Expanding Financial Inclusion for Underserved Enterprises
The partnership also advances financial inclusion by providing credit access to micro, small, and medium enterprises that have traditionally been excluded from formal banking services.
Using models like Equity Bank’s Eazzystock Financing, the initiative targets entrepreneurs, particularly women and youth, who operate at the margins of the economy.
By integrating these businesses into Unilever’s formal distribution ecosystem, the program not only broadens their commercial opportunities but also contributes to community-level economic development.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.
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