NCBA has extended its partnership with the African Guarantee Fund (AGF) through a Sh3 billion enhanced guarantee agreement, which will run for a decade, to expand financial support for small and medium-sized enterprises (SMEs).
The deal will facilitate increased lending to businesses, particularly those led by women, as well as projects in renewable energy and sustainable agriculture.
With AGF’s risk-sharing mechanism, NCBA has cumulatively disbursed Sh16.4 billion in loans, supporting 696 SMEs through more than 3,500 transactions, amounting to Sh8 billion.
The outstanding portfolio under this arrangement currently stands at Sh1.7 billion. The partnership has also contributed to job creation, with 7,200 positions generated—2,200 for women and 4,100 for youth.
NCBA Group Managing Director John Gachora described the agreement as a demonstration of the bank’s commitment to SMEs, particularly those advancing sustainable business practices.
Read More
"This strategic partnership with AGF is proof of our devotion to SMEs, particularly those spearheading sustainable practices led by women," Gachora stated.
He noted that the increased guarantee limit would allow NCBA to provide "more flexible and long-term financial solutions" to support SME growth, which he believes will foster broader economic development.
AGF Group Chief Executive Officer Jules Ngankam emphasised the critical role SMEs play in Kenya’s economy.
"Our partnership with NCBA represents a significant step in our mission to support SMEs, who constitute almost 98 per cent of all business in Kenya, and create over 30 per cent of the jobs annually," Ngankam said.
He stated that the renewal of the partnership with NCBA was a milestone in their shared mission to unlock financing for SMEs.
"Our collaboration has already achieved remarkable impact, and by increasing this facility, we can reach even more businesses that are shaping the future of Kenya’s economy," Ngankam added.
Beyond credit access, AGF will provide a Capacity Development grant to NCBA, aimed at improving its ability to lend to more SMEs, especially women-led businesses, by creating a pipeline of credit-ready enterprises.
This is part of AGF’s broader strategy to support women entrepreneurs through its Affirmative Finance Action for Women in Africa (AFAWA) initiative and promote sustainable development through its Green Guarantee Facility.
NCBA reaffirmed its focus on financial inclusion for women entrepreneurs during a recent International Women’s Day dinner in Kapsabet, where the bank pledged to offer tailored financial solutions, forge strategic partnerships, and provide business education to foster growth.
The bank also directs at least 30 per cent of its procurement to women and youth-led businesses as part of its inclusion agenda.
In addition to SME financing, NCBA invests Sh150 million annually in community projects focused on education, sports, and environmental conservation.
Through a Sh6.5 billion partnership with Proparco, NCBA continues to support green financing and women’s economic empowerment.
SMEs seeking financial solutions are encouraged to explore NCBA’s range of services, including credit facilities, currency exchange, cash management, and online banking.
With the renewed partnership, NCBA aims to extend its reach and support even more businesses in scaling their operations, contributing significantly to Kenya’s economic growth.
