A pioneering approach to small business finance has earned a global accolade, with Co-operative Bank of Kenya (Co-op Bank) receiving the “Product Innovation of the Year (Africa)” award at the 2025 Global SME Finance Awards.
The recognition, announced at a Johannesburg ceremony hosted by the International Finance Corporation (IFC) and the SME Finance Forum, validates the bank’s strategy of empowering Micro, Small, and Medium-sized Enterprises (MSMEs) through a comprehensive digital and financial ecosystem.
The award specifically cited Co-op Bank’s “Full-Spectrum Approach to MSME Growth,” which extends beyond conventional lending to provide innovative solutions that mitigate the perceived risk of small business financing.
Key components include a revolving “MSME stock financing” facility for retailers and agro-dealers, alongside digital tools that streamline payments, credit access, and business management, enabling enterprises to operate more efficiently.
In 2024 alone, the bank disbursed Ksh 77 billion in digital credit via its M-Coop Cash mobile platform, of which Ksh 14 billion comprised unsecured loans calibrated to business turnover.
This volume of lending illustrates both the scale of engagement and the operational capability of the bank to extend targeted financial support to a segment traditionally underserved by formal banking.
“Once we understood the unique needs of MSMEs, our strategy focused on creating an integrated financial ecosystem that supports growth while managing credit risk,” said Vincent Kihara, Head of Retail Banking at Co-op Bank, explaining the rationale behind the award-winning approach.
He further outlined how tiered service packages and educational clinics have been deployed to enhance financial literacy and operational capability among over 235,000 MSMEs nationwide.
The bank’s strategy also integrates gender-focused financial inclusion measures.
Through collaboration with the Africa Guarantee Fund, women-led businesses gain access to credit guarantees of up to 75 per cent, expanding capital access and supporting entrepreneurship within traditionally constrained segments.
Active portfolio management has concurrently maintained non-performing loan ratios below sector averages, highlighting the bank’s risk oversight capabilities alongside growth objectives.
Since its inception in 2018, the Global SME Finance Awards have acknowledged financial institutions that advance inclusive small business finance, with the 2025 edition attracting over 150 entries from more than 60 countries.
The award positions Co-op Bank among Africa’s leading financial innovators, reinforcing its influence within Kenya’s competitive banking sector while signalling its commitment to fostering sustainable enterprise growth.
The recognition underscores the critical role of targeted financial instruments, technological integration, and structured support in shaping an MSME ecosystem that drives employment, innovation, and economic resilience, further solidifying Co-op Bank’s reputation as a catalyst for inclusive business development across the continent.
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