Fostering a vibrant small and medium enterprise (SME) sector is increasingly becoming a fixture priority for policy makers, government and private sector players in Kenya. This is for the obvious fact that SMEs are a primary driver of job creation, economic growth and diversification and social stability.
According to the Kenya National Bureau of Statistics,there are more than 17 million SMEs in Kenya contributing 25 percent of the country’s GDP and employing up to 80 percent of the workforce. That is very significant, by any standards.
Curiously, a 2016 study commissioned by Invest In Africa (IIA) and Strathmore Business School highlighted the inability to scale up as a major barrier that has seen 70 percent failure rate of SME’s within the first three years of existence. Part of the reason for this high failure rate, according to the study, is inadequate capital.
In response to this conundrum, ABC Bank is offering SMEs holistic financial solutions to enable them grow their businesses and increase their contribution to the country’s economic growth.
- FX and Trade Finance- We support our SMEs in the impex (Import and Export) business with our bespoke FX (forex trade) and Trade Finance solutions.
- Bancassurance- We have set up a dedicated Bancassurance unit to cater for the various insurance needs of our customers. We now provide tailor-made Marine Cargo Insurance packages to our customers involved in the import business.
- Payment solutions- We continue to be at the forefront of providing flexible and convenient payment solutions through our various channels such as C2B (M-Pesa to account), B2C (account to M-Pesa), Internet Banking, ATMs just to mention a few. These have significantly enhanced money transfers and transactions convenience for our customers, hence increasing efficiency in business while at the same time providing a secure transactions environment.
- Partnerships- Through our various partnerships with other players, we now offer customized innovative solutions to our customers in the agribusiness, renewable energy, and water and sanitation (WASH) space.
- In addition, we offer SMEs other non-lending products to give them better value and a holistic banking experience under the same roof. For instance, our fixed deposit and Forex markets products are helping SME clients grow their portfolios to support their financing needs. We also give them free advisory to help them maximize on the funding opportunities and grow their businesses. This sets apart ABC Bank as a true business partner. We are proud of our leadership position in the SME finance arena, but we owe it to you our customers for expressing your confidence in us and for giving us the opportunity to serve you.