NCBA Group has renewed its 10-year, KES 3B partnership with the African Guarantee Fund (AGF) to boost SME financing in Kenya.
The financing agreement was signed by Mr. John Gachora, Group Managing Director of NCBA and Mr. Jules Ngankam, Group Chief Executive Officer of AGF, on Tuesday.
This enhancement will allow NCBA to further increase its commitment to Kenya’s SME segment. It will also help the group to promote the development of projects in renewable energy and sustainable agriculture as well as support women-led/owned businesses.
To date, NCBA has disbursed KES 16.4 billion in SME loans through AGF’s risk-sharing mechanism. AGF has supported 696 SMEs through over 3,500 transactions, totaling KES 8.0 billion. The current outstanding portfolio stands at KES 1.7 billion. The partnership has contributed to the creation of 7,200 jobs, including 2,200 for women and 4,100 for youth.
“This strategic partnership with AGF is proof of our devotion to SMEs, particularly those spearheading sustainable practices led by women. I believe that by increasing our guaranteed limit, our capacity to offer more flexible and long-term financial solutions that support SME growth will contribute to economic growth.” Mr John Gachora, NCBA Group Managing Director said.
In addition to extending the credit guarantee facility, the African Guarantee Fund (AGF) will provide NCBA with a Capacity Development grant. This grant will strengthen NCBA’s ability to lend to more SMEs, with a special focus on women-led businesses. It will support the development of a pipeline of credit-ready women-owned SMEs (WSMEs), enhancing financial inclusion and business growth.
“Our partnership with NCBA represents a significant step in our mission to support SMEs, who constitute almost 98% of all businesses in Kenya and create over 30% of the jobs annually,” said AGF Group CEO Jules Ngankam.
”NCBA has been a valued partner for over 12 years, and this renewal marks a new milestone in our shared mission to unlock financing for SMEs. Our collaboration has already achieved remarkable impact, and by increasing this facility, we can reach even more businesses that are shaping the future of Kenya’s economy.’’
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