Sidian Bank has secured Sh1.1 billion from Triodos Investment Management for onward lending to Micro, Small and Medium Enterprises (MSMEs) in Kenya.
The facility, to be repaid in five years, will support the bank in its focus on providing credit to Micro, Small and Medium-Sized Enterprises.
“As Sidian Bank, we are passionate about supporting the growth of Micro and SME customers in line with our goal to be the preferred bank for provision of financial solutions to entrepreneurs,” said Sidian chief executive officer Chege Thumbi in a statement Tuesday.
“Our partnership with Triodos Investment Management comes at an ideal time when the bank has sustained profitability despite a tough economic environment caused by the Covid-19 pandemic.”
The funds are part of the bank and the Netherland-based impact investor efforts to boost funding of small businesses often facing obstacles in accessing credit.
Triodos Investment Management has been active as an impact investor for more than 25 years.
This new partnership is aligned with the investor’s main agenda of being a driving force towards a society that is humane, ecologically balanced and works for the benefit of all.
“We are delighted to partner with Sidian Bank especially in these challenging times where the Micro and SME sector in Kenya and wider Africa needs financial services to grow its businesses.
“This partnership with Sidian Bank will offer investment opportunities that are crucial to building local economies and will enable innovative entrepreneurs to develop sustainable businesses,” said Tim Crijns, Fund Manager at Triodos Investment Management.