Co-op Bank named Africa's SME Bank of the Year
Business
By
Brian Ngugi
| May 29, 2026
Co-operative Bank Group Managing Director and CEO Dr Gideon Muriuki at a past event. [File, Standard]
Co-operative Bank of Kenya (Co-op Bank) has been named SME Bank of the Year in Africa at the 2026 African Banker Awards.
The recognition underscores the lender’s growing dominance in a segment long neglected by traditional financiers.
The award was announced on the sidelines of the African Development Bank Annual Meetings in Brazzaville, Congo. Organisers said it honours the bank’s contribution to financing small and medium enterprises (SMEs).
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SMEs account for nearly 90 per cent of all businesses in Kenya and across Africa, including more than half of employment, but remain largely locked out of formal credit.
The continent’s SME credit gap is estimated at Sh42.9 trillion, according to the International Finance Corporation.
Banks routinely cite high perceived risk, lack of collateral, and the high cost of funds as barriers, leaving many entrepreneurs facing stringent lending requirements and interest rates that can exceed 20 per cent.
The result is that most small businesses rely on informal savings groups or family loans, stifling expansion and job creation.
“This recognition is a powerful validation of our unique expertise and deep-rooted commitment to serving the banking needs of small and medium enterprises across the Eastern African region,” Co-op Bank Group Managing Director and CEO Dr Gideon Muriuki said in a statement. “We remain dedicated to walking alongside entrepreneurs – the true engine of job creation and inclusive economic growth.”
Co-op Bank has sought to bridge the gap through digital credit products and targeted partnerships. In 2025, the bank said it disbursed Sh10.43 billion to MSMEs via its e-credit platform, with over 90 per cent of customer transactions processed through alternative channels.
The bank also recently signed a Sh233.1 million guarantee facility with the UN Capital Development Fund (UNCDF) to help unlock credit for youth-led digital businesses and finance solar-powered cold storage to reduce post-harvest losses.
The bank previously won SME Financier of the Year Africa – Gold and Product Innovation of the Year (Africa) at the Global SME Finance Awards 2025.
The African Banker Awards, now in their 20th edition, celebrate excellence and innovation across the continent’s financial sector.