Posted on March, 29, 2019 at 09:40 am
By George Kebaso
On sunny January afternoon, Abraham Rono sat under a shade pondering. What was on his mind had troubled him for more than one year when he noticed that as much as he tried to increase his dairy and maize farming income, was all in vain.
A need to diversify his farming adventure led him to make inquiries in various financial providers. Little did he know that a knock at Credit Bank PLC doors would be the step that would rejuvenate his farming business.
As the bank launches its new branch in Eldoret in April 4, 2019, Rono leads a large group of small scale farmers in the region – who have suffered years of financial inadequacy – to embrace its expansion.
Speaking to People Daily, Credit Bank PLC, Head of Business Banking, Pamela Mutembei said one of the focus areas for the Bank at the new expanded Branch would be to enhance support for the agricultural sector in the region renowned for its maize and milk production.
“As the predominant economic activity in Uasin Gishu County, this will enable the bank to be of greater service to entrepreneurs in the area. And with the new branch opening, Credit Bank will endeavour to provide customised financial solutions that suit Small and Micro Enterprises (SMEs) especially those engaged in agricultural value chains,” she added.
She said the agricultural sector consists of a value chain that integrates both vertically and horizontally, providing immense growth opportunities for stakeholders. Credit Bank, she noted does not look just at the farmer but everyone along the value chain that contributes positively to farming ventures.
“This includes working with suppliers of farming inputs, the farmers themselves, buyers of outputs and those involved in value addition of farm products,” she added.
Lack of adequate financial, technical and human resources and lack of county-specific legislation on improving production, and climate change, are some of the most common institutional bottlenecks that have pushed many farmers out of their traditional business undertaking.
“High input prices, low input use, poor access to credit, declining soil fertility, poor road infrastructure and poor governance in farmer organisations are also some of the reasons leading us into poverty,” Rono said.
The Economic Survey has pointed out year after year of the contribution of MSMEs to the Kenyan economy and consequently the society. The sector continues to grow, contributing 33.8 per cent to the Gross Domestic Product (GDP) in 2015 data survey results released in 2017. According to Mutembei this is the motivation for the Bank as underlined in its mission to grow.
“As a bank, we remain committed to impacting the economy in which we operate in through working together with SMEs. The move to KVDA Plaza along Oloo Street provides a central and accessible location to our existing customers as well as potential customers,” she added.
Over the years, the bank has established financial solutions that are bespoke to businesses in the area. “This is what we do as a Bank. We listen to your business’s needs and provide you with a financial solution suited to your challenge,” Pamela notes.
This has allowed the bank to build relationships with business, primarily those in the agricultural sector, in Eldoret. The Bank has over the years managed to carve out a niche for itself in Trade Finance which allows for extensive linkages in the export market that will be of benefit to producers in the region.
Our financing solutions will also be geared towards enabling farmers in the area acquire farm machinery. Mechanisation of agriculture lowers cost of production for the farmers thereby increasing their margins each season.
Credit Bank, through the Entrepreneurs Hub has established market linkages that will be of benefit to the entrepreneurs in this region. The Entrepreneurs Hub will be an avenue for entrepreneurs in the region to establish networks that can be beneficial to them.
eHub is a platform that will give one the opportunity to learn, grow and engage in various aspects of their business. The platform will bring experts on board that will positively contribute to the agricultural sector’s value chain.
“We are definitely excited to be opening the new branch come April. We look forward to continue working with our customers that have enabled us to grow as well as to working with new customers who can come and discover a friend they can bank on,” says Pamela.
Source: MediaMax Network