(Nairobi) – ABSA Bank Kenya has committed KSh 100 billion in funding over the next three years to support the growth of Micro, Small, and Medium Enterprises (MSMEs) in Kenya. The initiative aims to enhance business growth across multiple sectors, including agriculture, education, health, manufacturing, and trade.
Erastus Muthura, the Head of MSMEs at ABSA Bank, shared that the bank plans to use this funding to support MSMEs through training and capacity building programs. The bank has set a goal to train 50,000 business owners, helping them restructure their businesses and adapt to the changing market and economic conditions. This effort is aimed at ensuring these businesses can tap into the available funds and expand sustainably.
Muthura spoke at a stakeholders’ meeting held in Naivasha, which was attended by participants from Naivasha Sub-County, Nakuru County, and surrounding areas. The forum focused on how ABSA Bank could assist local businesses in enhancing their operations. Similar meetings will be held across the country to ensure that MSMEs in various regions benefit from the program.
The bank official emphasized the critical role of MSMEs in Kenya’s economic development, noting that these businesses contribute significantly to economic growth and employment. He also pointed out that many businesses are still recovering from the impacts of the COVID-19 pandemic, followed by challenges such as drought and floods. ABSA Bank, he said, is committed to supporting these businesses in getting back on track and growing despite the setbacks.
Muthura also highlighted the need for business owners to stay agile and adapt to changing market demands. He said that by offering training programs, ABSA Bank aims to equip business owners with the skills they need to meet new market dynamics and customer needs.
In addition, Muthura discussed the importance of insurance policies that address emerging issues like climate change and the need for improved access to finance. He emphasized that ABSA Bank intends to bring together various stakeholders in what he described as an “ecosystem-led” approach to tackling these challenges.
To further support MSMEs, Muthura encouraged business owners who may be struggling with loan repayments to reach out to the bank to discuss their challenges. The bank is willing to work with businesses to find tailored solutions, as each business has unique circumstances.
During the meeting, businesswoman Judy Wangechi Njenga raised concerns about the unpredictable economic environment, high taxes, and electricity costs that make it difficult for businesses to thrive in Kenya. She called on the government to address these issues and urged banks to make their financial services more accessible, particularly for women entrepreneurs.
ABSA Bank Kenya, a subsidiary of ABSA Group Limited, has been operating in Kenya for several years. ABSA Group is one of Africa’s largest diversified financial services groups, with a presence in 12 countries across the continent. The group was formed in 1991 through the merger of several major financial institutions, and it is listed on the Johannesburg Stock Exchange (JSE) in South Africa.