Micro and Small Enterprises Authority (MSEA) and Equity have signed a Memorandum of Understanding (MOU) that will see MSE Associations under MSEA benefit from financial empowerment, advisory services and capacity building.
Equity, through its banking arm will offer credit facilities to qualifying members at attractive rates and terms while its social impact arm, Equity Group Foundation, will offer financial literacy training and capacity building for the MSEs.
MSE Associations who bank with Equity will be trained in a comprehensive curriculum that is tailor-made to equip them with skills in entrepreneurship, financial literacy and digital literacy. The training will also be enhanced through business mentorship, coaching and demand-driven business development services for the larger enterprises.
Commenting on the partnership, MSEA CEO, Henry Rithaa said that by collaborating with Equity Bank, they are enlarging the pool of affordable credit facilities available for MSEs in Kenya that are looking for affordable solutions to revive and sustain their enterprises especially during this pandemic. “MSEA is also working with other stakeholders in the public and private sector to provide innovative solutions that will unlock liquidity and provide working capital to cushion and revive the sector even as the pandemic evolves.”
Additionally, the MSEs shall access both short and long-term credit facilities in form of working capital loans, trade finance solutions such as LPO financing and Letters of Credit, asset finance and mortgage facilities as well as various business loans for stock purchase, business expansion or capital injection.
Through Equity’s countrywide network of 184 branches, small and micro enterprises who are members of MSEA now have access to training and advisory centres thus increasing their financial literacy in business management and their ability to qualify for and access credit facilities.
“As Equity, we are excited about this partnership as it is aimed at empowering micro, and small enterprises to make prudent and informed financial decisions while at the same time making it easy for them to access loans. We shall work with MSEA to train enterprises in financial literacy, entrepreneurship education, digital literacy and business development. Post-training, we shall also provide mentorship and coaching. Our aim is to ensure that MSEs have easy access to financial information, training material and credit facilities,” said Equity Group, Chief Commercial Officer, Polycarp Igathe.