NCBA has renewed its partnership with the African Guarantee Fund (AGF). This will enable the Group to provide financial solutions to small and medium enterprises ( SMEs) , through an enhanced guarantee agreement of Kshs. 3 billion for ten years.
Through the support of AGF’s risk-sharing mechanism, NCBA cumulatively disbursed Kshs. 16.4 billion in loans. Out of these credit facilities, AGF has supported 696 SMEs with Kshs. 8.0 billion. The outstanding portfolio is worth KES 1.7 billion. The partnership has so far generated 7,200 jobs, of which 2,200 and 4,100 target women and youth respectively.
Sustainable practices
Signed by Mr. John Gachora, Group Managing Director of NCBA and Mr. Jules Ngankam, Group Chief Executive Officer of AGF, this enhancement will allow NCBA, on one hand, to further increase its commitment to Kenya’s SME segment and on another, to promote the development of projects in renewable energy and sustainable agriculture, besides supporting women led or owned businesses.
During the ceremony, the Group Managing Director at NCBA, Mr John Gachora, said : “This strategic partnership with AGF is proof of our devotion to SMEs, particularly those spearheading sustainable practices led by women. I believe that by increasing our guaranteed limit, our capacity to offer more flexible and long-term financial solutions that support SME growth will contribute to economic growth.”
NCBA reaffirmed its commitment to advancing financial inclusion for women entrepreneurs during a recent International Women’s Day dinner in Kapsabet, where it hosted its clients. Recognizing the resilience and ambition of women-led businesses, NCBA emphasized its dedication to providing tailored financial solutions, fostering strategic partnerships, and offering business education programmes. By equipping women entrepreneurs with the necessary resources, knowledge, and networks, the Group aims to support their growth and long-term success.
In addition to the extension of the credit guarantee facility, AGF will provide a capacity development grant to NCBA that will be utilized in enhancing its capacity to lend to more SMEs – particularly to women-led SMEs by creating a pipeline of the ones which are credit ready.
“Our partnership with NCBA represents a significant step in our mission to support SMEs, who constitute almost 98% of all business in Kenya, and create over 30% of the jobs annually. NCBA has been a valued partner for over twelve years, and this renewal marks a new milestone in our shared mission to unlock financing for SMEs. Our collaboration has already achieved remarkable impact, and by increasing this facility, we can reach even more businesses that are shaping the future of Kenya’s economy,” said AGF Group CEO, Jules Ngankam.
Change the story
Furthermore, this partnership corresponds with AGF’s goals of promoting women’s empowerment through the Affirmative Finance Action for Women in Africa (AFAWA) programme and endorsing green initiatives to stimulate a more sustainable economy, through its Green Guarantee Facility.
NCBA actively promotes sustainability through targeted mentorship and skill-building programmes for women and youth, fostering diversity and diligence. The Group directs at least 30% of its procurement to women and youth, advancing inclusion. Through a Kshs. 6.5 billion partnership with Proparco, NCBA supports green financing and women’s economic empowerment, aligning with its “Change the Story” agenda.
Moreover, the institution invests Kshs. 150 million yearly in community development, education and sports. Its environmental efforts, such as tree planting and plastic reduction, further contribute to sustainable livelihoods.
NCBA encourages SMEs seeking flexible financial solutions to partner with it as they endeavour to unlock credit facilities and other services to grow their businesses. The partnership will benefit these businesses as they will have access to a wide array of solutions, including finance, currency exchange, cash management systems, online banking, and other services.
