NCBA has renewed its partnership with the African Guarantee Fund (AGF), to enable the Group provide financial solutions to SMEs, through an enhanced guarantee agreement of Kshs 3 billion for 10 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 [over 3,500 transactions] amounting to Kshs 8.0 billion. The outstanding portfolio is worth Kshs 1.7 billion. The partnership has so far generated 7,200 jobs, of which 2,200 target women, while youth account for 4,100 jobs.
(TOP: John Gachora, Group MD, NCBA – left – and Jules Ngankam, CEO, African Guarantee Fund).
Signed by John Gachora, Group MD of NCBA and Jules Ngankam, Group CEO of AGF, the 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 as well as support women led/owned businesses.
During the ceremony, the Group MD at NCBA, 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 the Group 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 programs. 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 the Group’s capacity to lend to more SMEs and particularly to women-led SMEs through creation of a pipeline of credit ready WSMEs.
“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 12 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.
Furthermore, this partnership corresponds with AGF’s goals of promoting women’s empowerment through the Affirmative Finance Action for Women in Africa (AFAWA) program 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 programs 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 the Group to unlock credit facilities and other services to grow their businesses. The partnership will benefit these businesses as they will have access to a range of solutions, including finance, currency exchange, cash management systems, online banking, and other services.
NCBA is a full-service financial services group providing a broad range of financial products and services to corporate, institutional, SME and consumer banking customers. NCBA Group operates a network of over 100 branches in five countries, including Kenya, Uganda, Tanzania, Rwanda, and Ivory Coast. Serving over 60 million customers, the NCBA Group is the largest banking group in Africa by customer numbers. NCBA Bank Kenya is among the top leading banks by assets. The Group continues to play a key role in supporting Africa’s economic ambitions. The Group is a Market Leader in Corporate Banking, Asset Finance and Digital Banking.
African Guarantee Fund is a specialized guarantee provider whose mission is to facilitate economic development and poverty reduction in Africa. To achieve this, AGF increases access to finance for Small and Medium-sized Enterprises (SMEs) across key economic sectors through an array of guarantee products and capacity development assistance. Since inception, AGF has unlocked more than $5 billion in SME financing, through partnerships with 250 partner financial institutions across 44 African countries.
AGF is backed by the following shareholders and sponsors: Denmark through the Danish International Development Agency (DANIDA), Spain through the Spanish Agency for International Cooperation (AECID), the African Development Bank (AfDB), French Development Agency (AFD), Nordic Development Fund (NDF), Investment Fund for Developing Countries (IFU), German Development Bank (KfW), French Agency for Private Sector (PROPARCO), West African Development Bank (BOAD), Global Affairs Canada (GAC), USAID’s West Africa Trade & Investment Hub (WATIH), TechnoServe and NORAD. AGF rated AA- by Fitch Ratings.
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