Absa and Unilever Launch KES 4 Billion Financing Programme for SMEs
Absa Bank Kenya and Unilever Kenya have signed a KES 4 billion financing agreement aimed at addressing one of the biggest challenges facing distributors and retailers in Kenya — access to working capital.
The initiative is expected to strengthen Kenya’s fast-moving consumer goods value chain while accelerating the growth of small and medium-sized enterprises (SMEs) that form the backbone of the country’s economy.
Programme Targets Distributors Across Kenya
The financing programme will initially target more than 38 Unilever distributors nationwide, alongside retailers and stockists operating within their supply chains.
During the first phase of implementation, the partners aim to onboard more than 10 distributors by the end of the year, laying the foundation for broader expansion in the coming years.
The facility is designed to improve stock availability, support business expansion and provide distributors with quick and reliable access to working capital financing.
The KES 4 billion commitment, which will be reviewed annually, will be delivered through Absa’s Wezesha Stock Loan financing solution.
Wezesha Stock to Unlock Access to Capital
The Wezesha Stock platform offers distributors and retailers access to digital working capital and stock financing solutions aimed at reducing delays associated with traditional lending processes.
Under the programme, eligible businesses will be able to access unsecured loans of up to KES 10 million, including Local Purchase Order (LPO) financing, invoice discounting and asset finance solutions.
Businesses will also be able to access up to KES 5 million within 48 hours through a fully digitised application and approval process.
The initiative seeks to remove long-standing barriers to credit access that have limited the ability of many SMEs to scale operations and increase inventory.
Absa Reaffirms Commitment to Kenyan Businesses
Speaking during the launch of the partnership, Yusuf Omari said the lender remains committed to supporting enterprises that play a vital role in driving Kenya’s economic growth.
Omari noted that Absa has supported businesses within Kenya’s stock distribution ecosystem for decades and views Unilever as one of its long-standing strategic partners.
He said the partnership would expand access to timely financing for distributors and retailers, enabling them to unlock growth opportunities while strengthening the broader business ecosystem.
Unilever Seeks Stronger Distribution Network
Meanwhile, Luck Ochieng described the partnership as an important step towards building a stronger and more resilient supply chain.
According to Ochieng, Unilever’s distributors serve more than 140,000 retailers across Kenya and play a crucial role in ensuring products reach consumers in every part of the country.
He noted that access to flexible financing would help distributors grow sustainably, improve product availability and provide better services to customers.
The partnership, he added, reinforces Unilever’s commitment to building an inclusive and resilient local supply chain.
Boost for SMEs and Job Creation
The programme is expected to deliver significant benefits for Kenya’s SME sector, which remains a major source of employment and economic activity.
By improving access to capital, the initiative is likely to support business resilience, encourage expansion and create new job opportunities across the consumer goods industry.
The agreement also builds on a banking relationship between Absa and Unilever that dates back to 1980, highlighting a shared commitment to driving sustainable growth and strengthening Kenya’s business value chains for the long term.
As businesses continue to face rising operating costs and liquidity constraints, the new KES 4 billion facility could provide a much-needed lifeline for distributors and retailers seeking to expand their operations and meet growing consumer demand.