The Standard Group Plc is a multi-media organization with investments in media platforms spanning newspaper print operations, television, radio broadcasting, digital and online services. The Standard Group is recognized as a leading multi-media house in Kenya with a key influence in matters of national and international interest.

Standard Group Plc HQ Office,
The Standard Group Center,Mombasa Road.
P.O Box 30080-00100,Nairobi, Kenya.
Telephone number: 0203222111, 0719012111
Email: [email protected]

NEWS & CURRENT AFFAIRS

The Nairobian

Former Ecobank Kenya Chief Executive sets up Sh50b fund

News

By Moses Michira | Dec 23, 2015

Former Ecobank Kenya Chief Executive Michael Monari has launched a Sh50 billion fund to lend small businesses.

The firm, called Longitude Finance and funded by several private equity funds, is the newest entrant to the lucrative enterprise lending business that commercial banks are fighting for. "Longitude Finance's primary focus is financial inclusion targeting small and medium-sized enterprises and organised groups that have had challenges accessing credit due to size and collateral requirements by conventional banking," said Mr Monari.

He adds that the new business will seek to take a stake in small companies, formally known as private equity, with an exit plan of less than 10 years. "We are happy to invest in SMEs that are looking at growing to the next level by either equity or debt participation," said the former Ecobank boss.

Small enterprises have emerged as the biggest target for lenders in Kenya, after being shunned for years on the fear of being uncreditworthy and the high rate of collapse. Most businesses collapse due to lack of basic financial and management skills, according to findings from various studies.

"Majority of SMEs and organised groups need two things to grow; access to affordable credit‎ and structures. Credit without structures has been a bottleneck in the SME space. You can see Lofin filling the vacuum," said Dr George Mwangi, an economist at the University of Nairobi.

Keep Reading

‎Mr Monari said Lofin will be paying close attention to developments in the financial sector services where bank acquisitions and mergers will be active in the next financial year in the wake of the strict regulatory controls being witnessed after the collapse of two commercial banks in the last five months.

Lofin is already looking out for acquisition opportunities to participate in the evolving financial sector. "We will not hesitate to take advantage of emerging opportunities that will support our financial inclusion strategy in the small businesses space," Monari said.