Sidian Bank, KIE partner to increase access to credit for MSMEs in manufacturing

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Sidian Bank has signed a Memorandum of Understanding (MOU) with Kenya Industrial Estates (KIE) to expand access to credit and financial support.

KIE is a government catalytic fund that supports Micro, Small, and Medium Enterprises(MSMEs) in value addition and manufacturing.

The strategic partnership, the two said, aims to expand access to innovative, personalised financial solutions, inclusive credit and business development support for MSMEs across Kenya.

The two will address key barriers limiting MSME growth, including access to affordable finance, appropriate credit, business skills and market opportunities.

Under the partnership, the two will collaborate on capacity building, MSME training, graduated and blended financing, customer referrals and access to larger credit facilities as businesses grow and demonstrate increased capacity.

Speaking during the signing ceremony at the State Department for MSMEs offices in Nairobi on Saturday, Principal Secretary, State Department for MSMEs Development,  Susan Mang’eni, underscored the need to rethink how finance and credit are designed and delivered to MSMEs.

She noted that Kenya's MSMEs have a financing demand of Sh4 trillion, and this partnership will be part of the interventions aimed at availing timely and affordable credit to MSMEs.

“MSMEs account for a significant share of economic activity and job creation in our country. If we can strengthen credit inclusion and ensure that businesses have access to financing that is appropriate to their needs, we can create the conditions for them to grow and, in turn, drive broader economic development,” said Mang’eni.

She also called for partnerships that can help businesses navigate these risks through affordable, personalised financing models, well-structured credit, and the capacity to build more resilient enterprises.

"We must move beyond a one-size-fits-all approach and develop solutions that respond to the realities of MSMEs,” she said.

Sidian Bank Managing Director and CEO John Okulo said supporting MSMEs is central to the bank’s purpose and long-standing commitment to entrepreneurs.

“Our role is not simply to provide financing. It is to understand the businesses we serve and develop financial solutions that respond to their needs, their stage of growth and the changing market environment," said Okulo.

He added: “The partnership with KIE would enable the Bank to complement financing with business solutions and market linkages, creating an environment in which MSMEs can build stronger businesses and transition from survival to sustainable growth. We want to make finance a catalyst for enterprise development rather than simply a source of capital."

Kenya Industrial Estates Managing Director, Mr Nelson Kwamini, said the partnership reflects the importance of bringing together financial and non-financial support to address the different stages of MSMEs’ growth journey.

“Our collaboration with Sidian Bank will enable us to strengthen the support we provide to MSMEs by combining access to finance with capacity building, training and business development,” said Mr Kwamini.

He added that KIE was looking forward to working with Sidian Bank to build a stronger ecosystem that places MSMEs at the centre of economic transformation.

“Sidian Bank has demonstrated a strong commitment to supporting entrepreneurs, and we look forward to a fruitful partnership that puts MSMEs at the heart of what we do. By combining our respective capabilities, we can create more opportunities for businesses to become sustainable, resilient and competitive,” he added.

The partnership between the two is designed to support MSMEs beyond initial financing by creating pathways through which businesses can strengthen their capabilities, access appropriate credit as they grow, and connect to wider economic opportunities.