NCBA Partners with AGF to Boost Financial Support for Kenyan SMEs, Women, and Sustainability

"Our commitment to SME growth, particularly for those driven by women in sustainable sectors, remains unwavering," said Mr. Gachora.

NCBA has renewed its partnership with the African Guarantee Fund (AGF), marking a significant milestone in supporting small and medium-sized enterprises (SMEs) in Kenya. The enhanced agreement, valued at KES 3 billion for the next 10 years, is set to improve financial solutions for Kenyan SMEs, especially those led by women and focusing on sustainable projects like renewable energy and agriculture.

Through AGF's risk-sharing mechanism, NCBA has already disbursed nearly KES 17 billion in loans, supporting 696 SMEs, contributing to over 3,500 transactions, and providing KES 8.0 billion in credit facilities. The partnership’s positive impact is evident, as it has generated over 7,200 jobs, of which 2,200 are for women, and youth account for 4,100 jobs.

The partnership’s renewal was formalized during a signing ceremony led by Mr. John Gachora, the Group Managing Director of NCBA, and Mr. Jules Ngankam, the Group CEO of AGF. Mr. Gachora emphasized that this strategic partnership underscores NCBA’s commitment to advancing financial inclusion for SMEs, particularly those promoting sustainable practices and those led by women. The new agreement will allow NCBA to offer more flexible, long-term financial solutions that support SME growth and contribute to the overall economic development of Kenya.

"Our commitment to SME growth, particularly for those driven by women in sustainable sectors, remains unwavering," said Mr. Gachora. "With an increased guarantee limit, we are well-positioned to provide more tailored solutions to foster long-term growth, particularly for women-led businesses."

As part of the renewed partnership, AGF will also provide a Capacity Development grant to NCBA. This grant will help the bank further enhance its ability to offer credit to more SMEs, especially those led by women. The initiative will include developing a pipeline of credit-ready women-led SMEs (WSMEs), addressing the specific needs of this growing sector.

Mr. Jules Ngankam, CEO of AGF, highlighted the importance of this collaboration in advancing Kenya’s SME sector, which comprises nearly 98% of all businesses in the country and contributes to over 30% of annual job creation. "This partnership is critical in supporting SMEs in Kenya, and our long-standing collaboration with NCBA has already resulted in remarkable achievements. By expanding the credit guarantee facility, we can reach more businesses that are shaping Kenya’s economic future," said Ngankam.

The renewed agreement also aligns with AGF’s broader goals, including the Affirmative Finance Action for Women in Africa (AFAWA) program, which promotes women’s financial empowerment, and the Green Guarantee Facility, which supports sustainable, green economic initiatives. These efforts help fuel AGF’s mission to drive inclusive growth and environmental sustainability across the African continent.

In addition to this financial backing, NCBA is committed to promoting sustainable growth through various initiatives. The bank actively engages in targeted mentorship and skill-building programs for women and youth, fostering diversity and inclusivity. At least 30% of NCBA's procurement goes to women and youth, further advancing the cause of economic inclusion.

NCBA is also a key player in green financing through a KES 6.5 billion partnership with Proparco, focusing on green projects and women’s economic empowerment. In line with its “Change the Story” agenda, NCBA continues to champion environmental sustainability through initiatives like tree planting and plastic reduction, as well as investing KES 150 million annually in community development, education, and sports.

For SMEs seeking financial solutions, NCBA encourages businesses to explore a wide range of services that can help them grow. These include access to financing, currency exchange, cash management systems, online banking, and much more. The partnership with AGF is designed to unlock greater opportunities for SMEs, giving them the resources they need to expand their operations, promote sustainable practices, and generate employment in Kenya.

NCBA’s renewed partnership with AGF is an exciting development in the financial sector, reinforcing the bank’s commitment to advancing financial inclusion, empowering women entrepreneurs, and supporting the growth of SMEs in Kenya. By bolstering financial solutions for businesses, particularly those that promote sustainability and women’s empowerment, NCBA and AGF are setting the stage for a brighter, more prosperous future for Kenya's economy.