Nairobi; The Netherlands Development Bank - FMO has signed a Kshs. 4 Billion (US$45.2 million) long-term debt with Chase Bank Kenya. This is in addition to a Kshs. 1.6B (US$18.4M) agreement signed with Microfinance Enhancement Facility SA, SICAV-SIF to support SME lending in Kenya. The FMA deal was signed 29th September 2014.
The debt agreements between Chase Bank, FMO and MEF are part of the Bank’s short to long-term plans to strengthen financial support in Kenya by providing affordable long term funding to the SME sector.
Chase Bank’s Deputy Chief Executive Officer, Paul Njaga stated that the substantial injection of funds into the bank was a strong indication of the continued investor confidence in both Chase Bank and the Kenyan economy in general. He noted that the bank is committed to increasing its funding to more SMEs particularly in the Women, Youth and Agriculture sectors so as to enhance financial inclusion and foster economic development in Kenya.
He noted that funding to the SME sector in the country was a growing requirement to support the sector’s entrepreneurial effort, which in turn has seen the sector grow exponentially in recent past. He noted that despite its major contribution to the country’s economic development, the SME sector continues to face challenges in the area credit, skills and capacity affecting the category’s growth and profitability levels.
Mr. Njaga added that the Bank’s Kshs. 5.6 Billion funding from FMO and MEF will be advanced to both existing and new SME customers. Chase Bank was recently named the ‘Best SME Bank in Kenya’ by the Banker Africa Awards and also scooped the ‘Best SME Bank 2013’ at the Banking Awards organized by Think Business. The bank’s continued success in the market has been attributed to innovation and its “close engagement with the customer” through its Relationship Banking model that offers bespoke customer-centric solution to its structured customers segments. Chase Bank also offers a full range of versatile and tailor-made corporate and retail banking products.
The local bank has consistently taken its place among the fastest growing banks in the country over the past six years, with impressive financial results with a compounded annual balance sheet growth above 50%.
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