Kenya, Tanzania Businesses Set for Over KSh 12 Billion Financing in Standard Chartered, BII Deal
- Standard Chartered Bank and British International Investment launched a KSh 12.9 billion (US$100 million) trade finance facility for businesses in Kenya and Tanzania
- The funding targets SMEs in key sectors like agriculture, healthcare, manufacturing, and infrastructure, with a strong focus on women-owned and women-led enterprises
- The facility is expected to support over US$450 million (KSh 58.16 billion) in trade transactions, helping businesses import essential goods, expand exports, and create jobs
Elijah Ntongai, an editor at TUKO.co.ke, has over four years of financial, business, and technology research and reporting experience, providing insights into Kenyan, African, and global trends.
Businesses in Kenya and Tanzania are set to benefit from more than KSh 12.9 billion (US$100 million) in new financing.
Source: Getty Images
This is a result of a partnership between Standard Chartered Bank and British International Investment (BII), the UK’s development finance institution and impact investor.
The two institutions have announced a US$100 million trade finance facility aimed at enhancing access to working capital.
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Who will access trade financing?
The financing will be available for local companies and small and medium-sized enterprises (SMEs) in key economic sectors such as agriculture, food production, healthcare, manufacturing, and infrastructure.
A notable focus of the programme is supporting women-owned and women-led enterprises, in line with the 2X Challenge criteria.
This includes backing businesses that promote women’s leadership, provide quality employment for women, and enhance women’s access to financial services.
“This new trade finance facility further empowers local businesses, especially those owned or led by women, by providing them with the capital they need to scale, trade, and thrive. It’s a testament to our commitment to economic development through innovation, diversity, and sustainable growth,” said Kariuki Ngari, Managing Director and CEO for Standard Chartered Kenya and Africa.
Over its lifetime, the programme is expected to catalyse over US$450 million (KSh 58.16 billion) in gross trade transaction volumes across the two East African nations.
How will trade financing help businesses?
The facility will help businesses import essential goods, meet supplier obligations on time, and grow export capabilities, thereby creating jobs, strengthening value chains, and spurring regional economic growth.
“Access to trade finance remains a critical constraint, particularly for women-led enterprises and SMEs. Through this facility with Standard Chartered, we’re enabling more businesses in Kenya and Tanzania to access the capital they need to create jobs and expand" said BII’s Kenya Head of Office, Seema Dhanani.
Source: Twitter
This deal builds on the success of previous partnerships between the two organisations, including a US$350 million (KSh 45.24 billion) risk participation agreement announced in November 2024. Since 2013, these collaborations have aimed to bolster trade finance for SMEs and corporates across Africa and South Asia.
Standard Chartered exits Tanzania's wealth sector
In other news, Standard Chartered Bank exited the wealth and retail banking sector in Tanzania.
Standard Chartered finalised a divestment deal with Nigeria's Access Bank PLC as part of its global strategy to streamline operations and focus on corporate and investment banking.
The move marked the end of Standard Chartered's consumer banking in the country, where it has operated since 1917.
Access Bank, which also recently acquired the National Bank of Kenya from KCB Group for KSh 12.95 billion, is strengthening its presence in East Africa, with both NBK and Access Bank Kenya set to operate independently during the integration process.
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Source: TUKO.co.ke
