Sidian Bank has received a Sh1.5 billion support from the African Guarantee Fund for onward lending to women led SMEs.

The seven-year partnership, which commences this year, will see Sedian target more women entrepreneurs. It plans to allocate a minimum of 30 percent of its enhanced lending to women.

The facility will be extended to women under AGF's newly established risk-sharing guarantee facility.

Sidian CEO Chege Thumbi said the funds will greatly boost the banks commitment to uplifting SMEs which he said play a key role in driving Kenya's economy.

“Sidian Bank has always been committed to supporting SMEs across the country, and this collaboration with the African Guarantee Fund marks a significant milestone in our efforts to provide accessible financial solutions,” said Thumbi 

Thumbi said SMEs are the backbone of our economy and the bank is dedicated to help them thrive through various products that give them financial access.

AGF chief executive Jules Ngankam said the partnership offers great potential on closing the SMEs financing gap, which remains a critical concern.

Lack of funding has been linked to the closure of many small and medium-sized businesses.

“The additional facility gives Sidian Bank an extra security measure to expand its lending activities to SMEs, especially green businesses and gender-smart projects, and therefore fostering an inclusive and sustainable economic growth in Kenya,” Ngankam said.

The African Guarantee Fund is a pan-African guarantee provider that aims at empowering SMEs to enable them drive the continent’s economic growth.