Sidian Bank has received KSh300 million from Oikocredit to support SMEs and Micro-Enterprises. This is the second batch that the lender is receiving from Oikocredit, as part of the initial KSh600 million loan amount.
The bank secured the Sh600 million credit facility in December 2016.
According to Chief Executive Officer at Sidian Bank, Chege Thumbi, the previous batch of KSh300 million was lent to over one thousand SMEs and micro-enterprises. The bank’s strategic plan is to grow the loan book. The funds from Oikocredit helped Sidian increase its loan book by 20%.
“The funds provided will enable Sidian Bank expand its lending activities by providing its clients with access to finance to improve their businesses and create a lasting social impact for people on low incomes in Kenya,” said Caroline Mulwa, Investments Manager for Oikocredit in East Africa.
Financial support to SMEs has enabled the bank to post a profit of KSh43 million as of June 30, 2019.