Equity Bank is accelerating efforts to help small and medium-sized enterprises (SMEs) move beyond raw material production and connect to higher-value local and global markets.
In a statement on September 17, the bank said the strategy focuses on promoting value addition, smart agriculture, and stronger market linkages to help grassroots businesses become more competitive in global supply chains.
The strategy was discussed during a recent high-level business dinner involving Equity Bank’s executive leadership, the Narok County Government, and the local business community.
Narok, whose economy has traditionally been anchored on the Maasai Mara National Reserve and rain-fed wheat farming, is increasingly developing into a multi-sector commercial hub, according to Equity Bank.
Equity Bank Managing Director Moses Nyabanda said the focus should move beyond increasing agricultural production to ensuring farmers can access better-paying markets.
“We are seeing farmers adopting smart agriculture, moving away from how our forefathers farmed,” Mr. Nyabanda said. “But we do not just want to increase yields; we want to connect you to the market. If you are a livestock farmer, we want to see how we can link you to markets that buy processed leather for designer bags, rather than selling raw hides for a fraction of the price,” said Nyabanda.
Equity Bank Promises Faster Agricultural Loans
Nyabanda assured that Equity Bank would align agricultural loan disbursements with local crop cycles to help farmers access financing when they need it.
He committed to a two-week turnaround time for agricultural credit, aiming the ensure farmers do not miss planting seasons.
The approach comes as businesses in regions outside traditional urban centres expand across several sectors, including agriculture, livestock, trade and tourism.
Equity Bank Commercial Director Kagiso Moloi said Narok had become an important market for the lender because of the growth taking place across the county.
“Narok is not a small market to us,” Moloi said. “Livestock business is growing, trade is growing, and tourism is growing. People in Nairobi may not realize how fast this region is expanding. Our job is to fund that growth and move money quickly and safely,” stated Moloi.
Bank Expands Financing for Local Businesses
Equity Bank is also offering asset financing and unsecured credit to businesses seeking to expand their operations.
Carol Rutto, Equity Bank Kenya’s Head of Retail and Branch Business, said customers seeking tractors or commercial trucks could access up to 105 percent in financing.
“If you want a tractor or a commercial truck, we are ready to support you with up to 105 percent financing,” Rutto said.
She added that the bank was offering unsecured loans of up to KSh10 million without requiring customers to pledge collateral.
The financing approach is intended to help businesses that may previously have struggled to access credit because of stringent collateral requirements.
Farmers Recall Credit Challenges
Okipira Ole Tutai, a farmer who began his agribusiness journey in 1985, recalled the difficulties farmers faced when accessing credit from state-backed agricultural financiers.
“From 1985 to 1994, I had never received a loan anywhere. With state financiers, you needed a title deed, which we didn’t have as young men. There was simply no way to access credit,” Tutai said.
He said more flexible, cash-flow-based lending later enabled farmers to expand from subsistence activities into commercial operations, including the acquisition of tractors and commercial real estate.
The discussions also touched on how flexible financing helped some businesses withstand economic shocks.
Education investors in Narok said loan moratoriums during the Covid-19 pandemic helped private learning institutions remain open during a period of severe economic disruption.
According to the investors, the institutions later resumed loan repayments and used bank financing to acquire land and develop infrastructure.
The increased uptake of credit also brought discussions around loan recovery and the challenges facing borrowers who default.
Narok County Executive Committee Member for Finance David Ole Muntet urged financial institutions to adopt more humane approaches when dealing with loan defaulters.
“Borrowing is a wedding, but paying back can feel like a funeral,” Muntet said.
He said borrowers had an obligation to repay their loans but urged banks to explore alternatives before auctioning properties.
“While people must pay their loans, we urge banks to find better approaches to handling defaulters rather than immediately auctioning properties. There is always a way out,” he said.
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