Fueling growth in Kenya through SMEs
MSMEs power 40% of Kenya’s GDP and employ over 15 million people—but many can’t access the funding they need to grow.
“Farming is in my blood,” says Peter Ndungu, a farmer from Limuru, Kiambu County. Since 1990, Peter and his wife, Mary, have built their livelihood through dairy farming, supplementing their income with crops and, more recently, sheep farming. Their journey hasn’t been without challenges, but with determination—and the support of Premier Credit— they’ve overcome obstacles to grow their business and improve their livelihoods.
In 2020, after enduring losses due to livestock diseases, Peter and Mary diversified into sheep farming, capitalizing on growing demand in their region. With financing from Premier Credit, they purchased sheep and expanded their operations. Today, their farm produces milk, meat, and vegetables for local markets, providing a steady income and employment for three additional workers. “Premier supported my idea,” Peter says. “They saw the potential in my plans and helped me build on my vision for the farm.”
Micro, small and medium enterprises (MSMEs) like Peter and Mary’s play a critical role in the country’s economy, contributing nearly 40 percent to GDP and employing over 15 million people. Yet, many entrepreneurs face significant challenges in accessing working capital due to strict bank lending criteria and limited collateral.
This is where institutions like Premier Credit step in. Since its founding in 2013, Premier Credit has empowered over 600,000 MSME entrepreneurs, especially those in underserved rural areas and informal settlements. With nearly half of its customers being women and over 60% based in rural regions, Premier Credit’s impact reaches deep into communities that traditional banks often overlook.
Recognizing the importance of MSMEs in fostering economic growth and reducing poverty, Abler Nordic and Norfund have each provided an $8 million senior loan in local currency to Premier Credit. The funding will enable Premier Credit to expand its geographic reach, diversify its offerings, and continue helping entrepreneurs like Peter and Mary invest in their futures.
“Supporting MSMEs with accessible, flexible working capital is even more critical than ever to safeguard livelihoods and drive job growth, amid the rising cost of living and post-COVID economic challenges,” says Godfrey Kaindoh, Investment Director and Africa Lead at Abler Nordic.
In addition to MSME loans, Premier Credit offers salary loans for households, pension loans, school development loans to low-cost private schools, and asset financing for water tanks and biodigesters, which convert organic waste into biogas for cooking and lighting, and bio-slurry for use as fertilizer.
“Kenya is a key country for our investments, and partnering with Abler Nordic to support Premier Credit underscores our commitment to empowering entrepreneurs and boosting job creation in Kenya,” adds Judy Kinyanjui, Investment Director for Financial Inclusion at Norfund.
“Premier Credit Kenya is honored to partner with Abler Nordic and Norfund,” says Gideon Nyaga, Managing Director of Premier Credit. “This investment will strengthen our capacity to serve the diverse needs of micro and small businesses in Kenya. The funds will be allocated responsibly, ensuring a meaningful impact on the businesses and communities we serve.”
For Peter and Mary, access to affordable financing has opened new possibilities. In addition to diversifying their farm, they’ve improved efficiency with investments like an electric irrigation pump, significantly reducing costs. Premier Credit’s continued growth, supported by Abler Nordic and Norfund, will enable many more entrepreneurs like Peter and Mary to grow their businesses, create jobs and contribute to Kenya’s economic development.
