Lender NCBA has renewed its partnership with the African Guarantee Fund (AGF) through a KES 3 billion guarantee agreement for 10 years to support SME financing.
With AGF’s risk-sharing mechanism, NCBA has disbursed KES 16.4 billion in loans, benefiting 696 SMEs through 3,500 transactions worth KES 8.0 billion. The outstanding portfolio stands at KES 1.7 billion. The partnership has generated 7,200 jobs, including 2,200 for women and 4,100 for youth.
Signed by NCBA Group Managing Director John Gachora and AGF Group CEO Jules Ngankam, the agreement aims to expand NCBA’s SME financing, support renewable energy and sustainable agriculture projects, and promote women-led businesses.
NCBA reaffirmed its focus on financial inclusion for women entrepreneurs during a recent event in Kapsabet. The bank provides tailored financial solutions, strategic partnerships, and business education programs to support women-led SMEs.
AGF will also provide a Capacity Development grant to enhance NCBA’s SME lending, particularly for women-led businesses. AGF Group CEO Jules Ngankam noted that SMEs make up 98% of businesses in Kenya and create over 30% of jobs annually. The partnership aims to expand SME financing and economic impact.
The collaboration aligns with AGF’s Affirmative Finance Action for Women in Africa (AFAWA) and Green Guarantee Facility initiatives. NCBA directs at least 30% of its procurement to women and youth and has a KES 6.5 billion partnership with Proparco for green financing.
NCBA invests KES 150 million annually in community development, education, and sports. It also engages in environmental initiatives like tree planting and plastic reduction.
SMEs working with NCBA can access financing, currency exchange, cash management, online banking, and other services.
