On 6th November, the Kenya banking sector, under the umbrella body of the Kenya Bankers Association (KBA), unveiled a credit platform for Small and Medium-sized Enterprises (SMEs) called Stawi. Stawi was unveiled at the sector’s inaugural Inua Biashara Day by His Excellency President Uhuru Kenyatta.
ABC Bank participated in the inaugural Inua Biashara Day that was held at Safari Park Hotel themed “Promoting innovative finance for MSMEs”. We displayed some of the products of the SME customers we have been supporting to grow their business in different industries.
“Today, our efforts have borne fruit and I am confident we are going to restart this powerful engine of our economy. I take this opportunity to thank and also welcome our development partners to join us in finding solutions to grow our MSMEs,” President Uhuru Kenyatta said while launching the product.
The platform, christened Stawi, is an unsecured digital credit scheme which is meant to improve access to credit for MSMEs, through offering unsecured loans from between KSh30,000 to KSh250,000 with repayment periods of 1 month to 12 months, at an interest rate of nine percent per year.
Speaking during the launch, the Kenya Bankers Association (KBA) chairman Joshua Oigara said that Inua Biashara Day is a continuation of a concerted effort by the banking industry to provide solutions that support the growth and development of MSMEs with the view to ensure that Kenya’s home-grown companies remain strong and thriving entities. It is for this reason that our theme this year is “promoting innovative finance for MSMEs.
The loans are designed to accommodate MSMEs, which have for a long time been unable to access affordable credit because of their high risk nature due to lack of collateral or business plans needed to convince lenders of their creditworthiness.