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Co-operative Bank Group (Co-op Bank), led by Kenyan tycoon Gideon Muriuki has successfully secured $25.18 million from the German Investment Corporation, DEG, in a move aimed at bolstering the growth of women-owned Small and Medium Enterprises (SMEs) in Kenya
The facility, earmarked for on-lending to women-owned micro, small, and medium-sized enterprises (SMEs), marks a significant development for financial inclusion in Kenya. It’s the first instance where a guarantee from the European Fund for Sustainable Development Plus (EFSD+) was used, aligning with the EU’s Global Gateway Initiative.
Co-op Bank, DEG team up to finance female SMEs
“The current investment is an important contribution to supporting SMEs in developing countries, particularly those run by women,” said Monika Beck, a member of DEG’s management board. The entire amount will be directed towards female entrepreneurs, addressing funding gaps and supporting UN SDGs 5 (Reduced Inequalities) and 8 (Decent Work and Economic Growth).
Gideon Muriuki, Co-op Bank’s CEO and managing director, welcomed the financing, emphasizing the critical need to bolster support for women-owned businesses. The credit line will not only empower women entrepreneurs but also enhance Co-op Bank’s ability to address SMEs’ long-term funding needs, ultimately fostering sustainable economic growth.
Co-op Bank: Championing SMEs in East Africa
A longstanding collaboration (dating back to 2013) between Co-op Bank and DEG reflects a shared commitment to driving positive socio-economic outcomes. The transaction aligns with both entities’ support for the UN SDGs and the EU’s Global Gateway Initiative.
Co-op Bank’s dedication to Kenyan SMEs is well-established. Last year, the bank allocated Ksh14.1 billion ($104.48 million) for affordable loans to small businesses, solidifying its position in East Africa’s financial sector. Its subsidiaries, including Kingdom Securities Ltd. and Co-op Trust Investment Services Ltd., complement its core banking operations.
