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Equity Bank targets clothing industry SMEs with expansion loans

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A customer shops at a clothing store in Nairobi. PHOTO | FILE

Equity Bank has set its sights on small and medium enterprises in the clothing and textiles industry with loans targeting fashion designers, tailors and other players.

The bank will lend the SMEs up to Sh100 million to expand their businesses. Equity Bank, Hivos East Africa and the Association of Fashion Designers of Kenya Tuesday launched a report highlighting ways in which the clothing industry can position products for local and global markets.

“Women entrepreneurs make up the greatest percentage (80 per cent) in the textile and clothing industry in Kenya according to the report and their businesses are small in terms of production. Access to capital is their greatest impediment.... Creating a financial product targeting SMEs in the industry is what we as a bank can do to address their needs,” said Elizabeth Gathai, Equity’s credit director.

The association in collaboration with Equity will offer training, networking programmes and marketing platforms. Kenya’s fashion design and apparel retail market is estimated at more than Sh33 billion a year according to the manufacturers lobby.