Co-operative Bank kicks-off Sh15.2 billion MSME program
SEE ALSO :Court demands bank details in fraud case“Our message to MSMEs is simple; we have heard you. We have made available a substantial kitty of Sh15.2 Billion for a package of loans that include an unsecured business loan, a first of its kind in Kenya, E-Credit through our MCo-op Cash App where businesses are able to borrow up to Sh2 million via their mobile phone, packaged insurance cover which are handpicked and specifically negotiated to suit various segments under MSME, revised and pre-approved limits on overdrafts and loans. The loans will be supported by trade services that include Letters of Credit, guarantees, supply chain financing, among others,” Muchangi added. “The future is bright and good for us entrepreneurs but we need to move fast in embracing change such as new technology and emerging trends,” said one of the panelists, Pamela Bii of Tesha (K) Ltd. Speaking on the key learnings from his entrepreneurship journey, Edward Kariuki, Co-Founder and Managing Director of Raerex Group of Companies said, “As an entrepreneur ensure you have proper structures, quality and packaging of your product is crucial, think differently from your competitors, have a good relationship with your partners and suppliers and lastly keep your word and be very honest.” Co-operative Bank wishes to serve MSMEs in a wholesome fashion, and recently launched a partnership with Isuzu East Africa Ltd that offers an affordable means of purchasing Isuzu vehicles that are very popular with MSMEs. Through the partnership, customers will get up to 95 per cent financing to purchase the vehicle of their choice, and be allowed a whole two months to use the vehicle before they begin repaying the loan. This will give customers the space to generate cash to service the loan, which is to be repaid over an extended period of five years. For those Isuzu customers who also wish to boost the working capital of their business, an additional loan of Sh300,000 to be repaid in 12 months will be provided. A comprehensive insurance package priced at 4.75 per cent of vehicle value (that includes Political Violence & Terrorism) and Insurance Premium Finance is also available to allow customers pay insurance premiums in easy instalments. To effectively engage this target, the bank has trained its staff at the branches to identify the different needs customers have and correctly match them to relevant financial solutions. The vision for the Bank’s MSME offering is to grow world-class entrepreneurs beyond the Kenyan borders.