Chase Bank receives Sh2.5 billion to lend to women owned SMEs

Nairobi, Kenya: Chase Bank has received Sh2.5 billion to lend to women owned SMEs seeking to expand and grow their businesses.

In partnership with International Finance Corporation (IFC) and the 10,000 women initiative by Goldman Sachs, Chase Bank received a credit line through the Women Entrepreneurs Opportunity Facility (WEOF) to disburse (25 million dollars) Sh2.5 billion s to Kenyan women entrepreneurs. To date, Chase Bank Kenya has already lent (10 million dollars) Sh1 billion to women-owned SMEs, most of which have been through collateral-free loans. 

The funds are available to women run SMEs that have been in operations for two years. The bank defined these SMEs as a business that is100% woman owned, 51% shareholding by a woman or in the case of more than 4 directors, the woman has at least 20% shareholding. The loan amount ranges from (10,000 dollars) Sh1 million to (1,000,000 dollars) Sh90 million with a repayment period of up to 5 years on reducing balance. The loans are open to non-Chase Bank customers across any business segment.

A unique benefit of these loans is that they provide the women entrepreneurs’ with access to funding, training and networking opportunities. The partnership offers access a pool of global beneficiaries who can further enhance potential businesses partnerships for women entrepreneurs seeking to expand into new markets.

Due to Chase Bank’s positioning as a leading financier for SMEs as well as the women financial markets space, the bank was selected by IFC to actualize the 1000 women dream in Kenya. Over and above the credit line to Chase Bank, IFC has partnered to conduct market assessment and train staff. This strategic partnership will ensure that global technical expertise is passed on to beneficiaries.

 

“This partnership will ensure the women entrepreneurs benefit from financial advisory services that will positively impact their businesses and enable them to achieve what matters most. In 2014, Goldman Sachs 10,000 Women and International Finance Corporation (IFC) created the first-ever global finance facility dedicated exclusively to women-owned small to medium enterprises (SMEs). Together Goldman Sachs 10,000 Women and IFC have provided anchor investments of more than $150 million in the Women Entrepreneurs Opportunity Facility (WEOF) businesses’’ Shared Paul Njaga, CEO Chase Bank.

According to research by IFC, only 7% of women-owned SMEs in Kenya have access to formal credit.  In order to enable more women to access the capital they need to grow their businesses, WEOF collaboration with Chase Bank Kenya aims to more than triple women-owned SME portfolio by 2018. 

This strategic partnership further articulates the announcement in July 2015 at the Global Entrepreneur’s Summit that Chase Bank will commit over Sh60 billion over the next three years to lend to entrepreneurs in the Small and Medium Enterprise sector or SME with a bias to women and youth segments.