NCBA Bank Kenya PLC has today partnered with the Kenya Association of Manufacturers (KAM), to enhance the development of Manufacturing SMEs in the country.
The two-year deal will see the lender and KAM support 300 Manufacturing SMEs. This will be done through capacity-building programs to address some of the challenges facing local Manufacturing SMEs. Through the partnership, the two institutions will also 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.” Tirus Mwithiga, Group Director, Retail Banking, NCBA Bank Kenya said.
KAM Chief Executive, Ms Phyllis Wakiaga while highlighting challenges facing manufacturing SMEs, noted that 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. Formidable partnerships such as these are a step closer towards our vision to see Manufacturing SMEs thriving. We shall continue to work with like-minded partners, including the government and its agencies, as well as financial institutions, to secure the future of Manufacturing SMEs,” she said.
The partnership comes at a time when businesses are reeling from shocks arising out of the pandemic, including cashflow challenges and difficulties in meeting their financial obligations.
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