CREDIT

Stanchart unveils annual Sh10bn fund for small businesses

The platform will majorly focus on supply chain financing to the enterprises

In Summary
  • It aims to provide access to financing to over 100,000 Kenyan MSMEs by the end of the year.
  • During its three-month pilot period, it provided Sh150 million loans to the MSMEs in that have already registered on the platform.
The Standard chartered bank on Kenyatta avenue. Photo/Monicah Mwangi
The Standard chartered bank on Kenyatta avenue. Photo/Monicah Mwangi

Standard Chartered Bank has launched an ambitious Sh10 billion per year fund for small businesses in the country. 

Dubbed Solv Kenya platform, the initiative seeks to offer and aggregate services to transform the profitability, growth, and operational efficiency of businesses.

AdChoices
ADVERTISING
Targeting Micro, Small, and Medium-Sized Enterprises (MSMEs), the platform will majorly focus on supply chain financing to the enterprises.This is through the facilitation of connections and negotiations between verified MSMEs and financial institutions for affordable credit.

It aims to provide access to financing to over 100,000 Kenyan MSMEs by the end of the year, issuing over Sh10 billion annually in working capital financing.

During its three-month pilot period, it provided Sh150 million in loans to the MSMEs in the country that has already registered on the platform.

According to SC Ventures, the business unit that provides the platform for Stanchart to promote innovation and financial technology, MSMEs continue to be the most underserved industry segment despite their significant role and contribution to the economy.

This initiative will therefore seek to be a boost to the sector which has over 10 million enterprises that exist as either formal or informal businesses.

The sector employs more than 85 per cent of the Kenyan population and contributes close to 30 per cent of the country’s GDP.

Solv Kenya’s CEO Sheila Kimani, said that the platform is the first of several products that are planned for release to the market to promote MSMEs by giving them control, convenience, speed, and access to more financial and business solutions.

“We are excited to enter the market in a much bigger way now following a successful pilot of our initial product,' Kimani said.

"Supply Chain Financing has seen over 3,800 MSMEs and more than 10 multinational companies participate and engage on the platform in ways that have altered the course of MSME business in Kenya.” 

Hailing some of the benefits of the initiative, the general manager of Outlook Index, Catherine Muchai, said that since enrolling on the platform, their business has been impacted in a huge way.

“I love the convenience and the choices my customers now have as they are now able to buy more stock using the working capital solution from Solv. I still look forward to what else they have in store for me and my business in the months to come.” Muchai said.

The launch of the platform in the country marks the debut of the initiative in Africa following a successful rollout to India's 65 million MSMEs through an e-commerce platform since last year.

The platform is accessible through mobile phones and web-based applications.

The platform has signed pact with corporates including financiers to bring MSMEs to its pipeline of credit.

Solv’s partners include Faulu, Gulf African Bank, Diageo, Lafarge, Procter & Gamble and Nokia.

WATCH: The latest videos from the Star