Kenya: Branch MFB and Solv Kenya collaborate to fund SMEs

Branch MFB and Solv Kenya collaborate to provide Kenyan SMEs with loans, business development support, and market connections.

The partnership aims to unlock new growth opportunities for SMEs in Kenya by closing the credit gap, offering financial advice, and facilitating business connections to accelerate entrepreneurial success.

Under the arrangement, Branch MFB will offer loans and working capital of up to Ksh. 1 million for MSMEs registered on Solv Kenya’s platform, thereby facilitating their cash flow and enabling stock financing from suppliers and distributors.

Speaking during the partnership announcement, Branch East Africa Managing Director Rose Muturi said seamless access to digital financial services will help address liquidity challenges for SMEs.

This partnership goes beyond merely offering instant digital loans to enterprises. It’s about empowering SMEs with market connections and support to cultivate sustainable businesses that contribute to Kenya’s economic advancement.

“Access to credit facilities and business support is key to unlocking the full potential of our SMEs. The partnership is a significant step forward in achieving this goal. By combining our expertise, we will provide Kenyan entrepreneurs with the comprehensive support they need to scale their businesses and contribute to a more vibrant Kenyan economy,” Ms. Muturi said.

Solv Kenya boasts a diversified portfolio on its platform spanning various supply chains such as food, consumer goods, construction, alcoholic beverages, animal feeds, electronics, airline, and travel. SMEs engaged in the enrolled value chains can access stock financing from Branch MFB through the Solv digital platform.

African Lead SC Ventures and Solv Kenya’s CEO, Dan Karuga, highlighted that the partnership enables them to mitigate lending risks for MSMEs while exposing them to a diverse portfolio across multiple supply chains.

“This partnership is a perfect alignment of our technological expertise and a testament to the power of collaboration in driving innovation and growth in Africa’s digital economy. We are confident we will unlock new capital streams for SMEs, enabling them to scale efficiently. Together, we aim to reach out to more MSMEs and offer them convenient and affordable credit solutions that suit their needs,” Mr. Karuga said.

“At Branch, we remain committed to cooperating with other industry players to offer financial solutions. Our partnership with Solv Kenya creates a significant embedded financing solution for MSMEs,” Branch International CEO Matt Flannery Said.

Founded in 2015 in Kenya, Branch is a digital finance app providing access to instant loans and other digital banking products across Africa and Asia. Branch serves customers in Kenya, Tanzania, Nigeria and India, with offices in Nairobi, Lagos, Bangalore, Mumbai and Silicon Valley. In March 2022, after the merger and acquisition of Century Microfinance Bank, they became Branch MFB (Branch Microfinance Bank).