MICROCAPITAL BRIEF: Oikocredit Lends $9m to Sidian Bank for SMEs in Kenya

Oikocredit, a cooperative investor based in the Netherlands, recently lent KES 990 million (USD 8.9 million) to Kenya’s Sidian Bank for on-lending to small and medium-sized enterprises (SMEs). Sidian is a commercial institution with 42 branches offering corporate services, SME loans, microloans and personal loans as well as savings and insurance services. For the 12 months ending March 2021, Sidian reported after-tax income of KES 103 million (USD 322,000) on total assets of KES 33 billion (USD 298 million). Sidian, formerly known as K-Rep Bank, grew from an NGO originally launched as K-Rep in 1984 to promote micro- and small enterprise.

Oikocredit’s Investment Manager, Caroline Mulwa said Sidian “has demonstrated the ability to package trade solutions to the emerging SME clientele. This investment will enable the bank to lend more and thus contribute to the creation of sustainable jobs, which is in line with the mission of Oikocredit to create a lasting social impact on the low-income sections of society. During the investment period, Oikocredit will work with the bank to mainstream social impact and its measurement into its lending activities.”

Founded in 1975, Oikocredit invests debt and equity in financial inclusion, agriculture and renewable energy in Africa, Asia and Latin America with the goal “to invest responsibly… to improve the quality of life of low-income people or communities in a sustainable way.” As of March 2021, Oikocredit finances approximately 550 partners and has total assets of EUR 1.24 billion (USD 1.50 billion).

By Divya Deshmukh, Research Associate

Sources and Additional Resources

Oikocredit press release
https://www.oikocredit.coop/k/en/n2613/news/view/345116/9049/sidian-bank-signs-a-deal-with-oikocredit-to-support-smes-in-kenya.html

Sidian homepage
https://sidianbank.co.ke/

Sidian financial report
https://sidianbank.co.ke/wp-content/uploads/2021/05/Unaudited-Financial-Statements-And-Other-Disclosures-For-The-Period-Ended-31-March-2021.pdf

Oikocredit homepage
https://www.oikocredit.coop/en/

Previous MicroCapital article on Oikocredit
https://www.microcapital.org/microcapital-brief-oikocredit-loans-2-5m-to-grace-and-mercy-microfinance-institution-to-support-msmes-women-entrepreneurs-in-nigeria/

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