NAIROBI, Kenya, Oct 16 – I&M Bank is seeking to expand financing for small and medium-sized enterprises (SMEs) by lowering borrowing costs, strengthening risk-sharing partnerships and providing digital tools to help businesses improve productivity and scale operations.
The lender says access to affordable credit remains a major constraint for small businesses, many of which struggle to secure financing because of limited collateral, short credit histories and inconsistent financial records.
I&M Bank reduced its Kenya shilling lending rates by a cumulative 2.75 percentage points between the fourth quarter of 2024 and March 2025, following changes in the monetary policy environment.
The bank says the reductions were intended to pass on the benefits of lower interest rates to customers, while its lending products are structured around businesses’ specific cash-flow requirements and investment plans.
“Our approach is to move beyond simply providing credit and instead understand where a business is in its growth journey, the pressures on its cash flow and the kind of financing that will enable it to grow sustainably.”
The lender offers overdrafts and short-term loans for working capital, term loans for expansion, asset financing for machinery and equipment, trade finance, invoice discounting and facilities for agriculture and agri-processing.
It is also working with development finance institutions to share lending risks and widen access to credit for viable enterprises that may not qualify for conventional loans.
Its partnerships with the International Finance Corporation (IFC) and FMO have supported financing for Kenyan SMEs, while its partnership with FMO through the NASIRA guarantee is intended to address barriers faced by businesses with limited collateral or credit histories.
Beyond lending, I&M Bank is expanding business support through financial literacy initiatives, digitization and access to markets.
Through its I&M Solo Biz platform, businesses can conduct electronic transactions, receive transaction notifications and access banking services.
The bank also provides opportunities for SMEs to participate in business clinics, professional networking forums and artificial intelligence training through Google Hustle Academy.
The bank says stronger digital transaction records can help lenders assess business performance using cash flows and transaction data, potentially reducing reliance on conventional collateral.
It is also targeting financing opportunities in trade, construction, infrastructure, agriculture, transport and logistics, as well as businesses investing in productive equipment.
The bank attributes the demand to businesses seeking working capital and investing in capacity, while larger corporate and infrastructure projects are creating financing opportunities for suppliers, distributors and contractors across their value chains.
However, the lender acknowledges that access to credit alone may not guarantee business growth, particularly where enterprises lack sound financial management, adequate records or access to reliable markets.
“We believe the success of SME financing should ultimately be measured by what happens in the real economy, not simply by the amount of money disbursed.”
I&M Bank says it is looking to strengthen its assessment of outcomes such as business expansion, increased turnover, investment in productive assets and employment creation.
