African Guarantee Fund(AGF) has signed a KSh 1 Billion partnership agreement with Stanbic Kenya that will enable the bank to lend to higher-risk SME’s without traditional collateral.
The AGF contributes to the promotion of economic development vital for prosperity, stability and poverty reduction in Africa by enabling SMEs have increased access.
Designed and funded by the African Development Bank(AfDB) in partnership with the governments of Denmark and Spain, the fund provides financial guarantees to financial institutions to stimulate financing to SMEs and unlock their potential to deliver inclusive growth in the region.
AGF was established to address this mismatch in the supply and demand of SME financing. A joint venture between the African Development Bank, the Danish and Spanish Governments, AGF was initiated in 2010 to partner with financial institutions to help them increase their exposure to SMEs in Africa.
Stanbic Bank Kenya Limited is a corporate and retail bank licensed by the Central Bank of Kenya to provide banking services in the Kenyan economy.
The bank is part of the Standard Bank Group a leading African financial services organization, which was founded more than 150 years ago and today has operations in 20 African countries and across the globe.
Stanbic Bank Kenya Limited (as part of Stanbic Holdings Plc) is listed on the Nairobi Securities Exchange (NSE).