Credit Bank has opened a new branch in Eldoret aimed at Small and Medium Enterprises (SMEs) and farmers in the Rift Valley and Western Kenya regions.
Credit Bank Chief Executive Officer Betty Korir told the press that the decision to open the new branch at the Kerio Valley Development Authority (KVDA) building move was guided by the growth of business in and Eldoret town.
Mrs Korir said the bank would continue to focus on SMEs as their target market.
“As a bank, we remain committed to impacting the economy in which we operate through working together with SMEs. This is through building financial solutions that we know they cannot get from other established financial institutions,” she said.
The new Eldoret outlet brings the total number of Credit Bank’s branches to 17.
Uasin Gishu Governor Jackson Mandago welcomed the bank saying, “He is open for more investment opportunities that will be of benefit to the county and enable the development of the economy.”
Interest rates cap
Since the introduction of the interest rates cap in 2016, big lenders have opted to invest in government securities as opposed to lending to SMEs due to narrow margins against heightened risks.
The banks are seeking innovative ways of lending to small and medium-sized enterprises (SMEs) while reducing risks, a move that has seen them rely on corporate clients as guarantees for the SMEs they deal with.