The Co-operative Bank of Kenya has secured a significant $25 million long-term loan from DEG, a leading German development finance institution .
This significant funding will be dedicated to supporting women-led micro, small, and medium-sized enterprises (MSMEs) in Kenya.
Women-led businesses are a powerful force in the Kenyan economy, driving innovation, job creation, and economic growth. However, many of these businesses face a significant hurdle: access to financing.
Women entrepreneurs often face unique challenges in securing loans, including limited access to collateral and a lack of financial history.
This funding gap restricts their ability to grow their businesses, hindering their economic potential. The DEG loan addresses this challenge by providing Co-op Bank with the resources to offer tailored financial solutions for women-led MSMEs.
Bridging the Gap, Driving Growth
The lack of access to financing is a major barrier for women entrepreneurs. This $25 million injection will empower Co-op Bank to bridge this gap and provide women-led MSMEs with the financial resources they need to thrive.
These resources can translate into direct benefits for these businesses, allowing them to invest in growth, expand operations, and create new jobs.
The Economic Power of Women Entrepreneurs
Women entrepreneurs are not just driving their own success; they are a critical engine of the Kenyan economy.
Studies show that businesses run by women tend to reinvest a larger share of their profits back into their communities, promoting further economic development.
Supporting these businesses isn’t just good for them; it’s good for Kenya as a whole. Statistics show that a staggering 48% of all MSMEs in the country are owned by women, according to the World Bank.
By empowering women entrepreneurs, we can unlock their full potential and create a more prosperous future for all Kenyans.
Co-op Bank’s Commitment to SMEs
Co-op Bank has a long-standing commitment to supporting small and medium-sized enterprises in Kenya .
This dedication is reflected in the impressive growth of their loan book, which reached Ksh. 373.7 billion last year. Notably, Ksh. 25.22 billion of this amount was allocated specifically to micro-enterprises and SMEs.
The DEG loan complements these existing efforts by providing additional resources targeted specifically at women-led businesses.
A Strategic Partnership for Growth
The collaboration between Co-op Bank and DEG is a strategic partnership with a shared vision. Co-op Bank gains access to crucial funding, allowing them to expand their reach and empower a key segment of the Kenyan economy.
For DEG, this partnership aligns with their development goals of promoting economic growth and gender equality. This successful collaboration paves the way for future partnerships between the two organisations, encouraging further economic development in Kenya.
DEG has played a critical role in supporting MSMEs in Kenya. Last year, DEG acted as the lender for a $100 million Tier II capital facility that Co-op Bank tapped from a consortium of financial institutions.
This funding provided much-needed support to MSMEs in Kenya, enabling them to weather the economic challenges caused by the COVID-19 pandemic.
A Brighter Future for Women-Led Businesses
The DEG loan to Co-op Bank is a significant step forward for women entrepreneurs in Kenya. By providing access to financing and fostering growth for women-led businesses, this initiative has the potential to create a ripple effect of positive change across the Kenyan economy.
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We are looking forward to a brighter future where women entrepreneurs can flourish and contribute even more to Kenya’s success story.
Co-operative Bank offers a range of convenient banking services to its customers in Kenya including co-operative bank mobile banking.
With the co-operative bank paybill 400200, customers can easily make payments for goods and services. The co-operative bank customer care team is always available to assist customers with any queries or concerns they may have.
Customers can also access the bank’s services through the co-operative bank app or co-operative bank ussd code *667#, which allows them to check their account balances, transfer money, and pay bills.
The co-operative bank loans offered to its customers come with competitive interest rates and flexible repayment terms.
Additionally, the bank has a unique co-operative bank code that customers can use to access its services quickly and easily.
For those interested in co-operative bank careers, the bank offers various job opportunities across different departments and functions.
FAQs
How do I check my Cooperative Bank balance?
One way is to use the bank’s mobile banking service. Another way to check your balance is through the bank’s internet banking platform.
Who owns Cooperative Bank in Kenya?
Cooperative Bank of Kenya is a publicly listed company, and its shares are owned by various investors, including individual shareholders and institutional investors.
Is KCB better than Cooperative Bank?
Both KCB and Cooperative Bank are leading banks in Kenya, and each has its strengths and weaknesses.
Which bank is good for a salary account in Kenya?
Several banks in Kenya offer salary accounts, each with its features and benefits. Some of the top banks for salary accounts in Kenya include:
1. Co-operative Bank: Known for its low fees and charges and focus on supporting MSMEs.
2. KCB : Known for its extensive branch network and digital banking capabilities.
3. Equity Bank: Known for its competitive interest rates and robust mobile banking platform.
4. Standard Chartered Bank: known for its premium banking services and personalized customer service.
5. Absa Bank: known for its wide range of banking products and services, including investment products and insurance.
When choosing a bank for your salary account, consider factors such as fees and charges, interest rates, digital banking capabilities, and customer service to find the best fit for your needs.