Tag: Co-operative Bank MSME Forums News

Co-op Bank sponsors its customers to China for business exposure

Posted on by David Kingsley

Co-operative Bank, through its MSME offering, has taken customers to Shanghai and Yiwu in China for a business networking trip. The trip will enable customers to create linkages for overseas business and build partnership opportunities as well as purchase various items at a highly discounted costs which will enable them to pass the discounts to their customers making their products competitive.

Also read: Isuzu East Africa & Co-operative Bank announce ‘daily repayment’ asset finance scheme

The customers, drawn from across the country, will tour China, specifically Shanghai and Yiwu. In Shanghai, they will visit one of the world’s busiest shopping streets, Nanjing and in Yiwu, they will visit Futian Market which is the biggest hub in China for all kinds of products. It is divided into 5 districts, each with various sections selling specific products. In this trip, the customers will get to meet suppliers of electric appliances, electronics, hardware tools & fittings, telcom equipment, vehicles and many others.

They will further visit markets for office supplies, sports equipment, stationery, cosmetics, beauty/salon equipment, fashion accessories, beddings, curtains, fabrics, auto & motorcycle accessories, hair ornament & jewellery, festival arts and decorative arts.

Speaking about the business trip, Coop Bank Head of Business Banking, Mr Moses Gitau said it will be instrumental to all the business customers who will travel as they will create linkages for overseas business and partnership opportunities.

Co-operative Bank's Arthur Muchangi and Moses Gitau
Co-operative Bank’s Arthur Muchangi and Moses Gitau

“From our engagement with various business customers, we know that their business needs go beyond finance; they also need exposure and networking opportunities with business practitioners, in Kenya and beyond the border especially in successful countries like China,” he stated.

Later this year, in October, the bank will organize another business networking trip to Guangzhou for the 126th Canton Fair. This is the largest trade fair in China with the largest assortment of products, largest attendance and with the largest number of deals made at a fair. It is a unique experience where participants get to mix business with leisure. This trip is open for all business customers looking to travel to China for business.

Also Read: Co-op Bank will finance and help you import your dream car, here’s how

Co-operative Bank recently revamped its MSME offering and now has an arm in the bank which deals specifically with non-financial services for its MSME business banking customers. The bank retooled and refreshed the product offering to make it more responsive to the needs of MSMEs. They have made available a substantial kitty of Ksh. 15.2 billion for a package of loans that include an unsecured business loan, a first of its kind in Kenya, E-Credit through our MCo-op Cash App where businesses are able to borrow up to Ksh. 2 million via their mobile phone, packaged insurance cover which are handpicked and specifically negotiated to suit various segments under MSME, revised and pre-approved limits on overdrafts and loans.

The loans will be supported by trade services that include Letters of Credit, guarantees, supply chain financing, among others. These services are available at all Cooperative Bank branches across the country. The vision for this revamped MSME offering from Coop Bank is to grow world class entrepreneurs beyond the Kenyan borders.

Cooperative Bank Group MD Gideon Muriuki (right) and Chairman Stanley Muchiri

Co-operative Bank rolls-out MSME forums to counties, starting with Nakuru

Posted on by David Kingsley

Co-operative Bank has kicked-off a countrywide campaign of engaging Micro, Small & Medium-sized Enterprises (MSMEs) in the counties, beginning with Nakuru County. The forums focus on training and equipping business clients with the skills and strategies to grow their businesses in the changing operating environment in the economy.

These forums are part of the US$150 million (Sh15.2 Billion) partnership program between Co-op Bank and the International Finance Corporation (IFC) launched in mid-2018 to provide Affordable Financing and Business Training to Kenyan MSMEs.

In partnership with IFC, Co-op Bank has expended substantial resources on customer engagement and research work to understand the dynamics of this critical business segment. The MSMEs are the bedrock of wealth creation in Kenya as they account for over 90 per cent of Kenya’s private sector, employing over 15 million Kenyans in both the 1.7 million registered and 7 million unregistered businesses.

Simon Mungai of Rivanas Supermarket Nakuru (centre) with Ms. Loise Ngugi of Gold Front Ltd (left) and Moses Gitau, Head of Business Banking at Co-op Bank at Co-op Bank’s SME Customer Engagement Forum at Sarova Woodlands Nakuru on Friday 8 March 2019.

Speaking during the Nakuru County MSME Customer Networking Forum at the Sarova Woodlands, Nakuru today, the Head of Business Banking at Cooperative Bank, Mr Moses Gitau said,

“In 2017 the Bank decided to revamp our MSME offering, ensuring we are flexible to meet the ever changing business needs. We have made available the Sh15.2 billion kitty for a package of loans that include an unsecured business loan, a first of its kind in Kenya, E-Credit through our MCo-opCash App where businesses are able to borrow up to Ksh. 2 million via their mobile phone, packaged insurance cover which are handpicked and specifically negotiated to suit various segments under MSME, revised and pre-approved limits on overdrafts and loans. The loans will be supported by trade services that include Letters of Credit, guarantees, supply chain financing, among others.”

Speaking on key learnings from his entrepreneurship journey, David Kahura of Lanet Flour Mills said,

“There is need for business people to have a hands-on approach to their business, training is key; always seek to better yourself, know how the industry works, understand government regulations especially the ever changing quality requirements and most importantly get a good financial partner who can walk the journey with you, one who understands your needs.”

Following the networking forum, Ms Loise Ngugi of Gold Front Ltd, one of the panellists said,

“My experience on the ground aligns with trends shared by the bank; the under-40 customers are the ones who control the market and as entrepreneurs we need to keep up with the trends.”

The Customer Networking Forums are a key part of Co-op Bank’s MSME program as it is widely acknowledged that MSMEs need the insights and training on economic matters that have a direct bearing on their business, and which they have little or no control over.

The forums will be held across the country, and feature a detailed presentation by the bank economist on the opportunities in and out of the country that MSMEs can tap into and the ways the bank is working to enable customers to seize them. This is followed by a panel discussion with bank representatives and successful entrepreneurs, concluding with a networking session.

In line with the Bank’s efforts to build a strong offering for the MSMEs and their customers in general, Co-operative Bank recently launched a partnership with Isuzu East Africa Ltd that offers an affordable means of purchasing Isuzu vehicles that are very popular with MSMEs. Through the partnership, customers will get upto 95% financing to purchase the vehicle of their choice, and be allowed a whole two months to use the vehicle before they begin repaying the loan. This will give customers the space to generate cash to service the loan, which is to be repaid over an extended period of five years.

For those Isuzu customers who also wish to boost the working capital of their business, an additional loan of Ksh 300,000 to be repaid in 12 months will be provided. A comprehensive insurance package priced at 4.75% of vehicle value (that includes Political Violence & Terrorism) and Insurance Premium Finance is also available to allow customers pay insurance premiums in easy instalments.

To effectively engage this target the bank has trained its staff at the branches to identify the different needs customers have and correctly match them to relevant financial solutions. The vision for the Bank’s MSME offering is to grow world-class entrepreneurs beyond the Kenyan borders.