Absa Bank Kenya Pledges Sh100 billion to Boost MSME

Oct 19, 2023 - 11:38

(From left) Absa Kenya PLC CEO Mr. Abdi Mohammed and Micro and Small Enterprises Authority (MSEA) Director General Mr. Henry Rithaa pose for a photo during Absa Bank Annual Business Club Forum at a hotel in Nairobi on Wednesday October 18, 2023. (Photo by Okal Kevin).

Nairobi,

Thursday October 19, 2023

KNA by Nkooma Samson/Okal Kevin

Absa Bank Kenya PLC has made a commitment of Sh100 billion to bolster the Micro, Small, and Medium Enterprises (MSME) sector in Kenya.

The initiative unveiled during the Bank’s Annual Business Club Forum on Wednesday, aims to provide much-needed working capital to MSMEs across diverse value chains over the next three years.

Absa Bank Kenya Managing Director and CEO Mr. Abdi Mohamed said the move underscores Absa's dedication to fostering economic growth and development in Kenya, with a particular focus on supporting the resilience and growth of the MSME sector.

Mohamed expressed the bank's recognition of the critical role MSMEs play in Kenya's economy, emphasizing their contributions to job creation and growth of the Gross Domestic Product (GDP).

He highlighted the importance of offering sustainable finance solutions to help these businesses weather unexpected downturns.

“The support we are committing today aims to ensure that MSMEs have ready access to capital that enhances their resilience,” Mohamed stated.

Mohamed pointed out that their commitment aligns with Absa's broader strategy to contribute to Kenya's economic development by enabling MSMEs to access to markets, information, mentorship, coaching, and sustainable finance.

The Annual Business Club Forum served as a platform to discuss opportunities for businesses, particularly SMEs, to thrive in the current challenging operating environment.

Mohamed asked businesses to adapt and embrace changes as they navigate through uncertain times in what he referred to as a “Brittle, Anxious, Non-linear, and Incomprehensible (BANI) world.”

The commitment from Absa follows the recent launch of their Wezesha Stock proposition, a real-time digital platform that provides inventory management and trading services tailored to the needs of small and medium enterprises (SMEs).

According to Mohamed, Absa Bank Kenya's significant funding commitment to MSMEs underscores their dedication to fostering economic growth and development in Kenya by providing a much-needed boost to the resilience and growth of the country's MSME sector and contributing to job creation and GDP growth.

“We must not only adapt but also embrace these changes and seize the opportunities that come with them,” Mohamed said.

Courtesy; KNA