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The Cooperative Bank Group (Co-op Bank), managed by Kenyan businessman Gideon Muriuki, has successfully acquired $25.18 million from the German Investment Corporation, DEG, in a move targeted at strengthening the expansion of women-owned Small and Medium Enterprises (SMEs) in Kenya.
The facility, which will lend to women-owned micro, small, and medium-sized firms (SMEs), is a big step forward for Kenya’s financial inclusion. This is the first time a guarantee from the European Fund for Sustainable Development Plus (EFSD+) has been used, in line with the EU’s Global Gateway Initiative.
“The current investment is an important contribution to supporting SMEs in developing countries, particularly those run by women,” stated Monika Beck, a member of DEG’s management board. The entire sum will go to female entrepreneurs, bridging funding gaps and supporting UN SDGs 5 (Reduced Inequalities) and 8 (Decent Work and Economic Growth).
Co-op Bank’s CEO and managing director, Gideon Muriuki, welcomed the funding, underlining the essential need to increase support for women-owned enterprises. The loan line will not only empower women entrepreneurs, but will also improve Co-op Bank’s ability to meet the long-term finance needs of SMEs, hence supporting long-term economic growth.
A long-standing relationship (going back to 2013) between Co-op Bank and DEG demonstrates a shared commitment to achieving positive socioeconomic outcomes. The transaction is consistent with both businesses’ support for the UN SDGs and the EU’s Global Gateway Initiative.
Co-op Bank’s commitment to Kenyan SMEs is widely documented. Last year, the bank set aside Ksh14.1 billion ($104.48 million) for inexpensive loans to small firms, bolstering its standing in East Africa’s banking sector. Its subsidiaries, which include Kingdom Securities Ltd. and Co-op Trust Investment Services Ltd., supplement its core banking business.
