A Barclays Bank branch in Nairobi. FILE PHOTO | NMG
Listed lender Barclays Kenya says it is
working on loan products tailored to the needs of Kenya’s small
businesses after a nationwide survey revealed that most small and medium
enterprises (SMEs) lacked credit facilities that understood their
business model.
“We are engaging individual SMEs with a
view to providing the type of product that reflects their needs. SMEs
need training on bookkeeping as many were owner-run,” Barclays Kenya
business banking director Elizabeth Wasunna-Ochwa said.
The lender reckons that its teams stationed across 36 counties will help the businesses deliver to larger firms.
“We
are in discussion with large businesses that rely on low-end SMEs for
goods and services where our sole intention is to support the low-end
businesses with loans to improve their processes via purchase of
equipment to fulfil contracts awarded to them by the large players.
The
lender announced flat earnings of Sh1.9 billion for the three-month
period ended March, as costs of rebranding to Absa ate into its
bottom-line.
This is after a rebranding expense of Sh243.4 million, without
which the lender’s first quarter net profit would have grown nearly 10
percent.
Its total interest income grew 7.1 percent to hit Sh7.4 billion as the loan book expanded 9 percent to Sh180.4 billion.
The
lender is only the latest to increase its focus on SME lending, a
segment that was hardest hit when banks constricted lending following
the rate cap law.
Five commercial banks recently
unveiled a Central Bank of Kenya-backed loan product targeting SMEs that
would see businesses access unsecured loans ranging between Sh30,000
and Sh250,000.
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