Sidian Bank, a leading mid-tier financial institution, has today announced a partnership with the African Guarantee Fund (AGF), aimed at bolstering the growth of Small and Medium-sized Enterprises (SMEs) in Kenya.
Signed by Chege Thumbi, Chief Executive Officer of Sidian Bank and Jules Ngankam, Group Chief Executive Officer of African Guarantee Fund, this line of guarantee will not only help reduce challenges related to the absence of collateral encountered by SMEs but will further increase Sidian’s commitment to the SME segment while promoting their development in the private sector.
On his part, African Guarantee Fund Group Chief Executive Officer, Jules Ngankam said, “We are excited about this renewed partnership and the prospect of having an even greater impact in reducing the SME financing gap, which is still a major concern in this critical sector and has been linked to the widespread closure of these small and medium businesses.”
“The additional facility gives Sidian Bank an extra security measure to expand its lending activities to SMEs, especially green businesses and gender-smart projects, and therefore fostering an inclusive and sustainable economic growth in Kenya” Jules added.
The African Guarantee Fund is a pan-African guarantee provider whose mission is to empower SMEs to fully play their role as engines of growth in the continent. By providing guarantees that are acceptable to financial institutions, AGF facilitates SME growth, innovation and job creation thereby contributing to economic growth. Through the Affirmative Finance Action for Women in Africa, an initiative of the African Development Bank and implemented by AGF, Sidian Bank will receive additional support to boost their lending to women led/owned SMEs.
Sidian Bank first partnered with AGF in 2021, and has also benefitted from AGF’s Capacity Development Assistance which has enabled them automate their loan management systems.
Sidian Bank’s commitment to support entrepreneurs in Kenya has seen them offer transformational financial solutions tailored to the specific needs of business owners in the SME sector. The bank’s extensive network of 43 branches ensures accessibility and convenience for its valued customers.
