Symbolic image representing SME support: A business professional in a modern office discusses financing documents, illustrating business development and growth.

    Empowering Growth for Kenyan SMEs with Co‑operative Bank of Kenya

    Co‑operative Bank of Kenya has been a cornerstone of Kenya’s financial landscape since its founding in the 1960s by local co‑operative societies. Over the decades, it has grown into a fully‑fledged commercial institution and one of Africa’s largest cooperative banks. With multiple awards for digital innovation and a strong presence in rural regions, the bank plays a key role in promoting economic inclusion across the country.

    A Partnership to Unlock SME Potential

    DEG and Co‑operative Bank of Kenya have built a long-term partnership focused on expanding access to finance for small and medium-sized enterprises – an essential engine of Kenya’s economic growth.

    The collaboration started in 2022, when DEG acted as lead arranger for a USD 100 million loan, contributing USD 26 million itself. This growth financing enabled the bank to significantly scale its lending to local SMEs, supporting investment, business expansion and job creation.

    In 2023, the partnership expanded with a dedicated USD 25 million credit line which was partially secured by an EU guarantee from the European Fund for Sustainable Development Plus (EFSD+). The facility is targeted exclusively at micro, small and medium-sized enterprises managed or owned by women, strengthening opportunities for women entrepreneurs and contributing to greater gender equality in the Kenyan business environment.

    Further deepening the relationship, 2025 saw DEG Impulse implementing Business Support Services focused on consumer protection. These advisory measures support the bank in enhancing transparency and strengthening customer trust - an increasingly important factor in a modern, digital banking landscape.

    Contract signing betwwen DEG and the Co-opverative Bank Kenya: Group of people presenting official documents in front of partner banners, symbolizing long-term development cooperation.

    The importance of this collaboration is reflected in the words of the bank’s Group Managing Director & CEO Dr. Gideon Muriuki (5th from left):

    “Our partnership with DEG enables us to extend meaningful support to the enterprises that drive Kenya’s growth. With stronger capital, dedicated facilities for women-led businesses, and advisory expertise, we can widen financial inclusion and deliver even greater value to our customers and communities.”

    Development Impact

    With this financing and comprehensive advisory services, DEG is supporting a local universal bank in bringing a new financial product to market. Through “green loans,” Sudameris’ customers, particularly small and medium-sized enterprises, are empowered to make targeted investments in climate-friendly technologies.

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