Ecobank Kenya Limited has today announced a one-stop proposition for Small and Medium Enterprises (SMEs). The bank is also encouraging investors to insure their businesses against various risks.
Some of the SME solutions include SME loan products, inventory and distributorship finance, asset finance, short and medium term loans, cash or treasury bill-backed finance, contract LPO as well as asset finance facilities.
The solutions are jointly sponsored by the Bank’s EcoInsurance Agency and its 3 insurance partners Old Mutual, UAP and Saham Assurance.
Speaking at a forum Embracing Innovation Strategies for Banks and Insurance Companies, Ecobank Kenya Ag. Head of Domestic Bank Mr. Sam Marima said that as a regulatory requirement, credit facilities need to be insured, hence they need to ease the process of compliance. He said that due to economies of scale, they were able to negotiate better rates and additional benefits.
“Today, the SME sector constitutes a large portion of all businesses in the country, absorbs annually up to 50 per cent of new non-farm employment and contributes 30 percent of total employment and three percent of Gross Domestic Product (GDP),” he said.