The United Bank for Africa (UBA) is set to expand its presence in the vibrant Kenyan market by securing a substantial trade finance facility worth USD 150.0 million from the African Export-Import Bank (Afreximbank).
Oliver Alawuba, UBA’s Group Chief Executive Officer, emphasized the pivotal role this financial facility will play in boosting intra-African trade, particularly in light of challenges triggered by the Ukraine conflict.
“Recognizing the significance of SMEs, constituting over 80% of all businesses in Kenya, UBA aims to empower them by offering advantageous trade deals and accessible,” Oliver said.
This funding is targeted at bolstering lending operations, specifically focusing on small and medium-sized enterprises (SMEs) in East Africa’s largest economy facing challenges from escalating interest rates.
The agreement specifies that the funding will primarily support trade and trade-related transactions for UBA’s clientele in Kenya and other markets where it operates. This injection of funds will contribute significantly to fostering trade financing across diverse sectors of the African economy, mitigating the adverse effects of the Russia-Ukraine crisis.
UBA’s strategic initiative comes as a welcome relief for Kenyan SMEs struggling with hurdles in accessing affordable credit. With a keen focus on SMEs, UBA aims to align its efforts with economic growth and job creation imperatives in Kenya. The proposed trade deals are poised to empower these enterprises, providing the financial leverage needed for expansion and operational enhancement.
This expansion into the Kenyan SME market marks a promising stride for UBA, contributing to the country’s economic landscape. By directing attention towards SMEs and offering favorable trade opportunities, UBA not only supports the growth of these businesses but also propels intra-African trade, essential for the continent’s economic vitality and advancement.
