UBA Kenya received $282 million (Sh37.5 billion) from its Nigeria-based parent company, United Bank of Africa (UBA) Plc to offer loans to small and medium-sized enterprises over the next three years.
The funding is part of a larger $6 billion (Sh789 billion) SME funding agreement that UBA signed with the African Free Trade Area (AfCFTA).
Mary Mulili, the Chief Executive at UBA Kenya, emphasised the importance of supporting SMEs, which contribute significantly to Kenya’s economy and employ over 90% of the total labour force.
“We remain committed to supporting SMEs and we recognise the financing and market access gaps which we are stepping in to bridge. SMEs play a pivotal role in Kenya’s economy and contribute to over 90 per cent of the total labour force,” Ms Mary Mulili, UBA Kenya MD/CEO stated.
UBA Kenya’s loan book has grown to Sh4.06 billion from Sh2.86 billion, marking a 42% growth.
By lending Sh37 billion to SMEs over three years (approximately Sh12.3 billion annually), the bank aims to significantly expand its loan portfolio while diversifying its business beyond corporate lending.
The disbursement plan includes $57 million (Sh7.5 billion) in the first year, followed by $91.2 million (Sh11.9 billion) in the second year, and $136.8 million (Sh17.9 billion) in the third year.
UBA’s commitment to SMEs aligns with its strategic focus on being a catalyst for economic development in Kenya.
“UBA remains a go-to financial partner for SME growth and is in line with our strategic focus on the SME segment being a catalyst to the economic development in Kenya,” she said.
75 years of excellence worldwide and 15 incredible years right here in Kenya!
Oliver Alawuba , our Group Managing Director, shares: “At UBA, we’re not just about banking; we’re about making a difference. From facilitating global trade to personalized banking experiences, our… pic.twitter.com/nAn0jQEeqP— UBA Kenya (@UBA_KE) May 21, 2024
UBA PLC marked 75 years since it began operations in Nigeria in 1949, and this announcement was made during the celebration.