Oikocredit and MyCredit have sealed a partnership deal to sponsor SMEs in Kenya. MyCredit Limited has been approved for a loan facility of US$ 2.6 million (KES 325 million) by Oikocredit.
MyCredit Limited is a non-bank financial company with over 10,000 customers in Kenya alone, providing low-cost medium-term financing to small and medium-sized enterprises (SMEs).
With the establishment of this significant partnership, MyCredit intends to offer more financial opportunities via tailor-made loans to local SMEs. By offering these financial opportunities, small businesses without sufficient funding will find a fulcrum, stay functional and contribute to enhancing economic growth.
As part of an ongoing commitment to creating greater social impact and financial inclusion, this partnership between Oikocredit and MyCredit will reach underserved SMEs and provide much-needed capacity-building support to wider communities in Kenya.
Through this new partnership with Oikocredit, MyCredit will fulfil its mission to support businesses and local communities to achieve greater financial freedom by getting custom-built financial offerings to growing and emerging enterprises, professionals, and civil servants.
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With this investment, MyCredit will keep enhancing SMEs’ quick, easy, affordable access to capital. In the past six years, the organization has given out 15,500 loans totalling KES 6.08 billion to consumers around Kenya. MyCredit opened 15 branches during that time and added 158 jobs. Oikocredit aims to provide loans to businesses engaged in the financial inclusion sector and to enhance the quality of life for low-income people across Kenya. This new funding agreement supports that mission.
More details on Oikocredit’s partnership deal
George Mbira, MyCredit’s CEO said: “The secured funding will support MyCredit’s strategic plan to offer affordable and medium-term financing of up to a maximum of three years to its SME customers who are in trading businesses. Through this partnership, the SMEs will be able to create more job opportunities in the communities within which they operate.
At MyCredit, we are excited to build a truly pan-African business in the next 10 years, opening branches in all 47 counties and commercial centres to reach and develop missing middle enterprises.”
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Michael Kariah, Oikocredit’s Investment Officer East and Southern Africa said: “This transaction enables Oikocredit and MyCredit to work together to provide funding to support SMEs in Kenya and further extend our social impact. SMEs are one of the main pillars of economic growth as they have a multiplier effect of supporting many households by creating sustainable jobs. Our funding and capacity-building support will enable the company to make further progress in key impact areas while expanding the outreach to more underserved SMEs in the country.
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The presence of partnership deals like this helps sustain the hope of many in Africa’s economy. With better and more progressive deals like this, African businesses will have a higher potential to stay functional for as long as possible.
There were no schemes to assist small African and emerging businesses in the past. Thus, some businesses have collapsed due to inadequate funds and a lack of help created by the partnership between Oikocredit and MyCredit. This is the current state of affairs for Kenyan businesses.
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