Co-op Bank wins global award for SME product innovation
Business
By
Brian Ngugi
| Oct 06, 2025
Tier one lender Co-operative Bank of Kenya (Co-op Bank) has been recognised for its pioneering work in small business finance, winning the "Product Innovation of the Year (Africa)" award at the Global SME Finance Awards 2025.
The award, hosted by the International Finance Corporation (IFC) and the SME Finance Forum, endorses the lender's strategy for empowering Micro, Small, and Medium-sized Enterprises (MSMEs). The bank was honoured at a ceremony in Johannesburg for its "Full-Spectrum Approach to MSME Growth."
The strategy moves beyond traditional lending to create a digital and financial ecosystem for small businesses, a segment often deemed high-risk by banks. Key initiatives include a revolving "MSME stock financing" solution for retailers and agro-dealers, and a suite of digital tools for payments and credit.
In 2024, the bank disbursed $594 million (Sh77 billion) in digital credit through its M-Coop Cash mobile platform, including $109.8 million (Sh14 billion) in unsecured loans based on business turnover, according to the award submission.
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The lender said in a statement that the award validates its commitment to building a supportive ecosystem for MSMEs, who are the engine of Kenya's economy.
The bank's approach also emphasises financial inclusion, with a specific focus on women-led businesses through a partnership with the Africa Guarantee Fund that provides credit guarantees of up to 75 per cent.
To date, Co-op Bank says it has engaged over 235,000 MSMEs across Kenya through tiered service packages and educational clinics.
The bank reported that its structured lending and active portfolio management have resulted in non-performing loan ratios that are below the sector average.
The Global SME Finance Awards, launched in 2018 and endorsed by the G20, celebrate institutions that advance inclusive finance for small businesses worldwide. The 2025 edition received over 150 entries from more than 60 countries.
The recognition places Co-op Bank among the continent's leading financial innovators as it seeks to deepen its reach in a competitive Kenyan market.