August 24—KCB Bank Uganda, together with the European Investment Bank (EIB), has carried out a financial training forum among local SMEs in Kampala in a bid to make it easier for small businesses to access credit.
Joram Kiarie, the KCB Managing Director said, “We have noticed first-hand the difficulties SMEs face while applying for loans. The majority of our clients, especially first time borrowers do not know how to package their applications. We are here to train our SMEs so that they can have the requisite information and knowledge to enable them access quick and affordable financing.”
EIB is the European Union’s long term non-profit lending institution set up in 1958. The training is aimed at helping small enterprise owners to understand key aspects of accessing credit from financial institutions, including how to get a loan, how to package their loans application, and how well they can manage the funds to avoid defaulting.”
The Kenya-based KCB Bank is a regional with currently operations in six countries namely Uganda, Kenya, Tanzania, South Sudan, Rwanda and Burundi.
Earlier this year, EIB extended a 10 million euro (about UGX38 billion) loan facility to KCB Bank to lend to SMEs. The facility now enables small business owners to apply for long-term loans ranging from five to seven years for expansion of their enterprises in terms of additional projects.
Brian Myesigye the CEO of Bravo Shoes said one of the key challenges faced by SMEs is lack of books of account. “Most of our businesses are informal; we are trying to formalize them to ensure effective credit analysis,” he said.
According to bank officials, the EIB facility will benefit over 380 small businesses across the country with an average loan of UGX100 million. So far, the bank has trained over 800 SMEs across the country in Jinja, Mbale, Lira, Gulu, Arua, Hoima, FortPortal and Mbarara