Small and Medium-sized
Enterprises (SME) make the majority of businesses in most economies.
Co-operative Bank is aware of the importance of SMEs to the Kenyan
economy and that is why there are loan products specifically tailored
for this group of businesses. What separates Co-op Bank from other banks
in the market place is the relationship management that it offers its
customers. This is the extra push and support that any entrepreneur is
looking for in a partner bank.
In
a recent interview with Wanjiku Kabiru the Head of SME banking at
Co-operative Bank, she emphasized on the importance of SMEs to the
economy; “When you grow an SME you are developing the country.” Ms. Kabiru proceeded to explain, “At Co-operative Bank we have studied the markets and looked at our customers business needs.”
Through this analysis of the market, many success stories of
entrepreneurs growing their businesses from concept to greatnesses have
been recorded over the bank’s history.
Relationship
management is what farmer Mr. Moses Parantai found appealing about
working with Co-operative Bank. He is a large scale poultry farmer
located in Isinya town, Kajiado County rearing broiler chicken. He got
started in the poultry business in the early 1980s where he grew his
flock to 70,000 birds. However, due to lack of water and drought
challenges in Kajiado, he sold out his flock. In 1983 Mr. Parantai was
awarded a scholarship to Egerton University to study Range Management
after which he decided to start his own poultry business.
Initially
Mr. Parantai focused on rearing chicken for eggs - keeping about 100
layers from which he would get many trays of eggs. Unfortunately at the
time there wasn´t a good market for selling eggs; the demand for the
eggs was much lower compared to the supply. After this experience he
decided to look at a more viable farming business instead of keeping
chicken layers.
In 2008 he approached
Kenchic; exploring the option of broiler farming. Kenchic informed him
that they would give him a contract to buy his broilers if he could
construct a commercial chicken house.
The business idea sounded
promising but to start he needed Ksh. 3 million to build the house, buy
all the required equipment, vaccines, and chicken feed as well as pay a
deposit to Kenchic for the birds.
Mr.
Parantai then approached Co-operative Bank to finance the initial
investment of Ksh. 3 million; he used the loan to set up the first house
with a flock of 6,000 broilers. Since the initial loan, Mr. Parantai´s
business has grown tremendously.
After
the funds are released for the loan, the relationship with the
entrepreneur doesn’t end there. The bank will monitor and give guidance
to the entrepreneur to help their business continue to grow and
therefore, Co-operative Bank has worked with Parantai in growing his
flock to 42,000 chicken in 7 houses and he is now a major supplier for
Kenchic.
Mr. Parantai speaks fondly of his relationship with the bank saying, “Co-operative Bank is reliable. You walk into the bank, they listen to you.” In
a recent interview at Mr. Parantai’s farm in Isinya Mr. Lincoln Mwangi,
Branch Manager at Athi River emphasized the importance of relationship
management at Co-op Bank, “Once we understand your business model,
we then understand what category of borrowing to place you in. We try to
live up to the slogan We are You.”
Co-operative
Bank uses its Bizwise SME Loan to help farmers like Mr. Parantai to
expand their businesses by opening new branches, introducing new product
lines, purchasing business assets or financing operating expenses,
purchasing assets like land, buildings, motor vehicles and machinery.
The loan product allows for a Ksh. 50 million and below loans.
Apply for the SME Bizwise Loan today!
Visit any of our branches countrywide, or talk to us on 020 3276937/ 0729 277 600/ 0736 690 101.
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