Sidian Bank gets second tranche of Sh300mn to support SMEs, Micro-EnterprisesOctober 2, 2019
NAIROBI, Kenya, Oct 2 – Sidian Bank has received the second tranche of Sh300 million of the initial Sh600 million long term facility from Oikocredit for onward lending to SMEs and microenterprises.
The bank secured the Sh600 million facility in December 2016.
Chege Thumbi, Chief Executive Officer at Sidian Bank, said that the initial tranche of Sh300 million has been utilized to lend to SMEs and micro-enterprises, in line with the bank’s strategic plan to grow the loan book.
He further added that the funds have contributed to a 20 percent growth in the loan book with the lending extended to over one thousand customers.
The bank is targeting achievement of its five-year strategic goals by leveraging trade finance, increased lending and financial backing to SMEs, which has seen the bank turnaround from loss making to a profit of Sh43 million as at June 30, 2019.
This is on the back of increased lending, growth in customer deposits as well as non-funded income supported by trade finance, bancassurance, foreign exchange and treasury bond trading incomes.
The second tranche of Sh300 million will be utilized to further boost the bank’s lending capability to SMEs and microenterprises.
Caroline Mulwa, Investments Manager for Oikocredit in East Africa, said “Oikocredit and Sidian Bank have been working together since 2005. Sidian Bank is a good fit for our organization’s mission as the bank has a strong commitment to SMEs and micro-entrepreneurs. The funds provided will enable Sidian Bank expand its lending activities by providing its clients with access to finance to improve their businesses and create a lasting social impact for people on low incomes in Kenya.”