Solv Kenya in KES 780m invoice financing partnership

September 22, 2022

Micro, Small, and Medium-Sized Enterprises (MSMEs) can now access financing to purchase more stock and sell more through Solv Kenya, a Standard Chartered-backed Business-to-Business (B2B) platform for MSMEs.

The platform has attracted over KES 780 million of pre-approved credit lines through its partnership with participating financial institutions to lend to over 1000 MSMEs registered under the platform – without the need for collateral and based on their transaction history with the suppliers.

The Solv platform works with multiple financial institutions and manufacturing and trading enterprises linking MSMEs to financial access at favourable rates. Under the facility, MSMEs participating in the Solv platform will obtain 100 per cent of their invoice transaction value with a 30-day credit period from the date of purchase order.

According to Solv Kenya Chief Executive Officer Sheila Kimani Omukuba, the facility will help to simplify and accelerate the growth of MSMEs. 'We are on course to revolutionize, simplify, and accelerate growth for micro, small, and medium businesses working capital gap in Kenya using technology and data. This program will not only address MSMEs growth challenges but give them options for accessing competitive pricing, more customers for manufacturers and traders and new markets for financial institutions.”

Incubated by SC Ventures, Standard Chartered Group's innovation, ventures, and fintech investments unit, the innovation was first launched in India owing to its 63 million MSMEs and inclusive trade ecosystem. The solution is now available in Kenya, where the MSME ecosystem accounts for 80% of all businesses, 30% of Kenya's GDP, and 15 million jobs.

Solv aims to expand the marketplace to more countries in Africa within – targeting to facilitate MSMEs with digitised operations; Buy now Pay Later (BNPL) programs and credit facilities from multiple lenders, access to quality products from verified suppliers at competitive prices, reliable on-ground logistics support and insurance.

Lack of capital is one of the biggest barriers to MSME growth in Kenya, which prevents MSMEs from realizing their true potential to produce goods and services, pay taxes and create jobs. The World Bank estimates that there is a KES 33trillion financing deficit for MSMEs in Sub-Saharan Africa.

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