Branch has entered into a partnership with Solv Kenya, to extend loans, business development support and market linkages to Kenyan MSMEs.
- •Branch MFB will provide loans and working capital of up to Kshs. 1 million for MSMEs on Solv Kenya’s platform, facilitating their cash flow and stock financing from suppliers and distributors.
- •Speaking during the partnership announcement, Branch East Africa Managing Director Rose Muturi said seamless access to digital financial services will help address liquidity challenges for MSMEs.
- •MSMEs are important contributors to economic growth in Kenya, constituting 98 per cent of all business entities in the country.
The sector remains highly informal, as only 20 per cent of the over 7.4 million MSMEs operate as licensed entities.
“By combining our expertise, we will provide Kenyan entrepreneurs with the support they need to scale their businesses and contribute to a more vibrant Kenyan economy,” Muturi said.
African Lead SC Ventures and Chief Executive Officer Solv Kenya Dan Karuga said the partnership enables them to de-risk lending to MSMEs while opening them up to a diversified portfolio across various supply chains.
“We are confident we will unlock new capital streams for SMEs, enabling them to scale efficiently. Together, we aim to reach out to more MSMEs and offer them convenient and affordable credit solutions that suit their needs,” Karuga said.
The sector provides opportunities for socio-economic transformation, absorbing low-skill and economically excluded individuals, such as women, persons with disabilities, and those with low levels of education.
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